Apollo Hospitals Enterprise announced on Monday that its board has approved a strategic restructuring plan, which includes the separate listing of its omni-channel pharmacy and digital health businesses within the next 18 to 21 months. This move aims to unlock greater value and enhance focus on its rapidly growing healthcare verticals.
The Board of Apollo Hospitals and its subsidiary Apollo HealthCo Ltd (AHL) has granted in-principle approval for a composite scheme of arrangement. As per the plan, Apollo’s omni-channel pharmacy business — including its digital health and telehealth segments, along with its investment in AHL — will be demerged into a new entity (NewCo). AHL will subsequently be merged into NewCo.
Keimed Pvt Ltd, a leading pharmaceutical wholesale distributor in India, will also be integrated into this new entity, creating a robust platform for pharmacy distribution and digital healthcare. The combined entity is targeting ₹25,000 crore in revenue by FY27.
Following regulatory approvals and scheme implementation, NewCo will become an Indian Owned and Controlled Company (IOCC) and seek listing on Indian stock exchanges within 18–21 months.
The plan also includes the consolidation of the front-end pharmacy segment. The new entity intends to acquire the remaining 74.5% stake in Apollo Medicals Pvt Ltd (AMPL), which holds 100% of Apollo Pharmacies Ltd (APL).
Apollo Hospitals Enterprise Ltd (AHEL) will retain a 15% stake in the newly formed company to maintain continuity and integration across the broader healthcare ecosystem.
Dr. Prathap C Reddy, Chairman of Apollo Hospitals Group, called the development “a unique model” that enhances access to quality healthcare for millions. Managing Director Suneeta Reddy highlighted that the structure allows shareholders direct ownership in India’s largest pharmacy and digital health platform.
Apollo HealthCo Executive Chairperson Shobana Kamineni added that the integrated entity will deliver healthcare solutions through over 7,000 physical stores and a digital platform that serves 19,000+ pincodes, with Keimed strengthening backend logistics. “Our goal is to serve over 100 million Indians,” she said.