Apollo Hospitals To Spin Off Pharmacy, Digital Health & Telehealth Into NEWCo, Set For Indian Stock Market Listing In 18-21 Months

Apollo Hospitals is set to separate Pharmacy, Digital Health and Telehealth business, creating a new company, NEWCo. According to the exchange filing, this company will be listed on the Indian stock market within the next 18 to 21 months. The company board has approved this.

In the new company, Apollo Healthco and India's biggest distribution company, Keimed Private Limited, are also present. Apollo Hospital's shareholders, for 100 shares in the new company, will get 195 shares. The company states that in the growing health sector, one will find shares.

Apollo Hospitals' pharmacy and digital health business earned around Rs 16,300 Crore in FY25. The goal is Rs 25,000 Crore till FY27. EBITDA margin is expected to be 7%. It will function from operational synergy and technology-based capacity.

The new company will be registered as an Indian Owned and Controlled Company (IOCC), which is in line with domestic regulations. The company will provide services in over 7,000 pharmacy stores and 19,000 pin code sectors across the country, providing access to over 10 crore customers.

This restructuring of Apollo Hospitals will happen in 3 phases

Demerger of Pharmacy, Digital Health and Telehealth Businesses into NewCo

Apollo HealthCo merges with NewCo

Keimed Pvt Ltd merged with NewCo

The move will eliminate the holding company discount and provide shareholders with an opportunity to invest directly in the fastest-growing part of the services sector.

Following this announcement, the shares of Apollo Hospitals gained over 4% on Tuesday and achieved Rs 7,555.

Brokerage firms Morgan Stanley and Citigroup have also issued positive ratings on this stock. The company will start the listing process of the new company after obtaining the necessary approvals from SEBI, CCI and NCLT, which is expected to be completed in the early months of 2026.

Apollo Hospitals is one of India's largest private healthcare networks, leading in the fields of hospitality, diagnostics and digital health. This restructuring is an important part of the company's long-term development strategy.

news