Apollo Hospitals’ Suneeta Reddy sells 3.6% stake in firm to reduce promoter-level debt1 min read . Updated: 12 Sep 2019, 11:42 PM IST
- The promoter holding in Apollo Hospitals stands at 30.8%
- On Thursday, Apollo Hospitals shares closed at ₹1,457.30 per share, down 2.55% on the BSE
MUMBAI : Apollo Hospitals Enterprise Ltd (AHEL) said its managing director, Suneeta Reddy, a member of the promoter family, has sold a 3.6% stake in the company to raise funds to trim promoter-level debt.
Shares were sold to institutional investors, including a fund managed by Abu Dhabi Investment Authority and France’s Societe General, for ₹1,482.50 per share, fetching the promoters ₹741 crore .
Mint reported on Wednesday that the promoters have launched a secondary share sale of five million shares, at a floor price of ₹1,450 apiece, which would fetch the promoter family ₹725 crore.
Citigroup and HDFC Bank advised the promoters on the stake sale, Mint reported.
“In line with our commitment to bring down debt and associated pledges, the promoter family of Apollo Hospitals, represented by Suneeta Reddy, today divested 3.6% holding in Apollo Hospitals Enterprise Limited, through a bulk deal," the company said in a regulatory filing.
“Once these proceeds are applied along with the net proceeds from the Apollo Munich transaction (expected by end October), the pledge position will come down from the current 76% to around 20%," AHEL said.
Apollo Hospitals’ total debt stood at ₹3,450.29 crore as of 31 March.
The promoters now hold a 30.8% stake in AHEL. There will be no further dilution of promoter stake, the company said.
On Thursday, shares of Apollo Hospitals closed 2.55% lower at ₹1,457.30 per share on BSE, underperforming the benchmark Sensex that fell 0.46% to 37,101 points.
“We are focused on the growth of the enterprise and its performance, with specific thrust on all three verticals, healthcare services, standalone pharmacies, and retail health. We believe each one of these verticals offers tremendous potential for value and we will devote our energies to enhancing that value," the company said.
In July, Mint reported that the promoters of Apollo Hospitals raised ₹1,000 crore from Credit Suisse to meet near-term debt repayment obligations of the promoter group.