**Apollo Hospitals to List New Omnichannel Pharmacy Entity in 18-21 Months**
Apollo Hospitals Enterprise Limited (AHEL) has announced its intention to list its omnichannel pharmacy and digital health business within the next 18 to 21 months as part of a strategic reorganization. The company’s board has approved the demerger of its omnichannel pharma and digital health division, Apollo HealthCo, into a new entity named NewCo, through a composite scheme of arrangement.
Post-demerger, Keimed, the wholesale pharmaceutical distributor acquired by Apollo last year, will merge with NewCo. Shareholders of Apollo Hospitals will receive direct shares in the new entity, with a distribution of 195.2 shares of NewCo for every 100 shares of AHEL held.
This transaction is poised to create the largest integrated omnichannel healthcare ecosystem, projecting a revenue of ₹16,300 crore (approximately $1.9 billion) for FY25. The new business will encompass Apollo 24/7, the digital health platform, offline pharmaceutical distribution, Keimed, and telehealth services, with an anticipated revenue run rate of ₹25,000 crore (around $2.9 billion) by FY27.
In a recent interview, Shobana Kamineni, executive chairperson of Apollo HealthCo, expressed optimism about the entity’s growth, forecasting a valuation of ₹30,000 crore within the next five to six years. The listing is expected to occur within the specified 18 to 21 months, and NewCo will be classified as an Indian owned and controlled company (IOCC) once the scheme is implemented.
NewCo also plans to strengthen its front-end pharmacy operations by acquiring the remaining 74.5% stake in Apollo Medicals Pvt. Ltd (AMPL), which currently owns 100% of Apollo HealthCo. This acquisition will allow NewCo to fully engage in the retail pharmacy business. AHEL will retain a 15% stake in NewCo and will appoint one nominee director to its board.
**FAQ**
**What is the timeline for Apollo Hospitals’ new entity listing?**
Apollo Hospitals plans to list its new omnichannel pharmacy and digital health entity, NewCo, within 18 to 21 months following the demerger.
