Home / Companies / News /  Apollo Hospitals' promoters to sell stake worth 725 cr to pare debt

Mumbai: Promoters of India’s largest hospital chain Apollo Hospitals Enterprise Ltd, are selling around five million shares through a secondary share sale, which could fetch 725 crore (approx $101 million), as the company’s promoters look to raise capital to pare debt.

According to a term sheet seen by Mint, Apollo Hospitals' promoters are selling up to 5 million shares or 3.6% stake in the company at a floor price of 1,450 per share. The transaction is expected to be closed on Thursday.

On Wednesday, shares of Apollo Hospitals closed at 1,495.4 apiece, up 0.15% on the BSE.

Citigroup and HDFC Bank are advising the promoters on the stake sale. The proceeds will be used to pare down the group’s debt.

Apollo Hospitals' total debt stood at 3,450.29 crore as of 31 March.

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.

The financing from Credit Suisse followed the group’s announcement that Housing Development Finance Corp. Ltd, India’s largest mortgage financier, has agreed to acquire the entire 50.8% stake of Apollo Hospitals Group in the health insurance JV for 1,336 crore. Out of the proceeds, around 1,036 crore will come to the promoter group, while Apollo Hospitals will receive 300 crore.

On 20 June, Mint reported that the Apollo Hospitals Group was looking to sell its stake in two more subsidiaries, Apollo Health And Lifestyle Ltd and Apollo Proton Therapy Cancer Centre Pvt. Ltd, to raise up to $200 million.

Apollo Health and Lifestyle is in the business of providing primary healthcare facilities through a network of owned/franchised clinics across India offering specialist consultations, diagnostics, preventive health checks, telemedicine facilities and a 24-hour pharmacy.

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