Apollo Hospitals promoter group sells 3.6% stake via block deal; stock down 2%

Post this divestment, the promoter group's stake in the company would constitute 30.8% of the paid-up equity capital.

Sep 12, 2019 09:09 IST India Infoline News Service

Apollo Hospital
Shares of Apollo Hospitals are trading lower by 2% on the BSE. The company said in a press note that the Promoter Group which held a 34.40% equity stake has divested 50 lakh equity shares constituting a 3.6% holding in the company through a bulk deal transaction on the stock exchanges.

Post this divestment, the Promoter Group's stake in the Company would constitute 30.8% of the paid-up equity capital.

“In line with our commitment to bring down debt and associated pledges, the promoter family of Apollo Hospitals, represented by Ms. Suneeta Reddy, today divested 3.6% holding in Apollo Hospitals Enterprise Limited (AHEL), through a bulk deal. Promoter holding in AHEL now stands at 30.8%,” the company said in a BSE 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%.

There will be no further dilution of promoter stake.

“We have always maintained that our over-arching priority Is to work in the best interest of investors and stakeholders and to maximise value for them. We believe this decisive step in bringing down pledge levels will best serve the interests of all stakeholders,” the company added.

The promoter family stays fully committed to the vision of our founder, Dr Prathap C Reddy. 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.

Further, the company believe each one of these verticals offers tremendous potential for value, and we will devote our energies to enhancing that value.

The coming decade will be a definitive one for Indian healthcare when the synergies of integrated care, across preventive and curative models, enabled by seamless consumer engagement through digital platforms, will become visible. Apollo Hospitals will continue to be at the forefront of that transformative journey. Together, we will make the vision of quality, accessible and affordable healthcare for all, a reality, it added.

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