Apollo Hospitals scouting for acquisitions in north and east India




After acquiring IHH Healthcare (IHH’s) stake in Apollo Gleneagles Hospital Limited, Kolkata (AGHL), Chennai-based is now scouting for some more acquisitions to expand in north and east India. The hospital chain recently got its board’s approval to raise upto Rs 1,500 crore and a portion of it will be used for acquisitions.


Suneeta Reddy, Managing Director, Group said that while they may not look for greenfield projects for the time being, they are looking at a few small ticket acquisitions — around 300-beds in larger cities and 200 beds in smaller ones — to expand Apollo’s presence mainly in northern and eastern parts of the country.



Recently, Apollo signed a definitive share purchase agreement with IHH, its JV partner in Apollo Gleneagles Hospital Limited, Kolkata (AGHL) to acquire its existing 50 per cent stake in AGHL for a cash purchase consideration of Rs 410 crore


She added, the proposed QIP will fund proposed acquisitions, for investment in 24/7 digital app and to reduce debt to enhance profitability.


Apollo got its board’s approval to raise upto Rs 1,500 crore by way of a further issue of securities on a preferential basis and/or through Qualified Institutional Placement (QIP).


Commenting on occupancy, Krishnan Akhileswaran, Group CFO of said in November it increased to 70 per cent, from 65 per cent in October and 38 per cent in the first quarter. He noted, break even is around 50 per cent. Covid-19 occupancy is 30 per cent of total occupancy.


On pharmacy, he said, 80 per cent EBIDTA will be captured by back end Apollo and in the listed entity, once initial costs are absorbed in the back end, can capture up to 85% of EBDITA of the pharmacy business.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *