Home / Business and Economy / Apollo Hospitals: Board-Driven Split Boosts Shareholder Value
Apollo Hospitals: Board-Driven Split Boosts Shareholder Value
13 Jan
Summary
- Apollo's restructuring is board-driven to boost shareholder value.
- Pharmacy and digital health businesses have distinct growth drivers.
- Apollo HealthCo aims for listing by FY27, expecting 20% growth.
Apollo Hospitals' strategic restructuring to spin off its pharmacy and digital health businesses was a board-driven decision focused on sharpening strategic goals and increasing shareholder value. Managing director Suneeta Reddy clarified that the move was not influenced by family dynamics, emphasizing a business-first approach.
The separation of Apollo's hospital operations from its pharmacy and digital health arms is critical due to their fundamentally different economic models, return profiles, and growth trajectories. This strategic pivot aims to unlock value for shareholders by creating more efficient, independently focused entities.
Apollo HealthCo, the holding company for the pharmacy distribution and digital health services, is on track for a public listing by fiscal year 2027. It is projected to achieve 20% growth over the next three years. Concurrently, the core hospital business is expected to experience an 18% growth rate.
