Mumbai: Apollo Health & Lifestyle Ltd (AHLL), a subsidiary of Apollo Hospitals Enterprise Ltd, plans to raise Rs500 crore to fund expansion, Apollo Hospitals said in a statement to exchanges on Thursday.

It will soon start discussions with private equity investors.

AHLL operates a network of primary care and specialty care formats clinics across India. In the primary care space, it has 5 formats -- Apollo Clinics, Apollo Sugar, Apollo Diagnostics, Apollo White and Apollo Dialysis. It also has Apollo Cradle and Apollo Spectra Hospitals as part of its portfolio.

“AHLL operates in a large and rapidly growth healthcare market with a portfolio of formats that have strong synergies amongst themselves and enable Apollo to provide a continuum of care to patients. AHLL has undergone a significant expansion in the past 3 years and has plans for continued growth and expansion over the next 5 years," said the company in its notice to the exchanges explaining the need for fund raising.

In May, Bloomberg reported that Apollo is in the midst of a Rs1,600 crore ($251 million) expansion program to add 1,590 beds and eight health-care facilities over the next two years.

The hospital chain also plans to raise Rs750 crore through allotment of equity shares on a rights basis for expansion and possible acquisitions.

In 2013, US-based private equity company KKR and Co. had invested Rs550 crore in PCR Investments Ltd , the holding company of Apollo Hospitals Enterprise Ltd . The investment is in the form of debentures with an option for these to be converted into equity shares at the end of the five year period.

At 2.30pm, shares of AHLL were down 2.29% to trade at Rs1446.10 per share on the BSE. The benchmark Sensex was trading at 26,790, down 0.9%.

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