The Competition Commission of India (CCI) has approved a restructuring plan involving Apollo Hospitals group entities Apollo Healthco, Keimed, and its wholly owned subsidiary Apollo Healthtech Ltd (AHTL).
In June, Apollo Hospitals Enterprise had announced its board’s approval for the separate listing of its omnichannel pharmacy and digital health businesses within 18–21 months as part of a reorganisation aimed at unlocking value.
According to CCI, the restructuring will take place in multiple stages under a composite scheme of arrangement cleared earlier this year by the boards and audit committees of the group entities.
Under the plan, the identified business undertaking of Apollo Hospitals Enterprise Ltd (AHEL) will be demerged into AHTL. This will be followed by the merger of Apollo Healthco Ltd (AHL) and Keimed Pvt Ltd with AHTL, consolidating the group’s healthcare and distribution businesses. Subsequently, the equity shares of AHTL will be listed on stock exchanges.
The final step of the transaction involves the acquisition of a 74.5% stake in Apollo Medicals Pvt Ltd (AMPL) by AHTL from its existing shareholders.
Apollo Healthco currently operates the “Apollo 24|7” platform, which provides services such as doctor consultations, diagnostic bookings, and pharmacy distribution. Keimed is engaged in wholesale and retail distribution of pharmaceutical products, medical and surgical equipment, and FMCG items.
Apollo Hospitals Enterprise Managing Director Suneeta Reddy said the reorganisation would allow shareholders to hold direct stakes in what is positioned to become the country’s largest omni-channel pharmacy and digital health platform. The group has set a revenue target of ₹25,000 crore by FY27 for the combined entity.
Separately, CCI also approved other transactions, including:
- The acquisition of IRB Hapur Moradabad Tollway Ltd, Kaithal Tollway Ltd, and Kishangarh Gulabpura Tollway Ltd by IRB InvIT Fund.
- The acquisition of IRB InvIT Fund units by Anahera Investment Pte Ltd, an entity linked to Singapore’s sovereign wealth fund GIC.
- The acquisition of OC Oerlikon Textile Holding AG, Pfaffikon, and Oerlikon Textile Inc by Switzerland-based Rieter Holding AG and Rieter North America Inc.
CCI approval is required for deals above a certain threshold to ensure fair competition and prevent anti-competitive practices in the market.