Apollo Hospitals to Invest Rs 103.2 Crore in Subsidiary Through Rights Issue

Apollo Hospitals Enterprises announces a Rs 103.2 crore investment in its subsidiary, Apollo Health and Lifestyle. The acquisition, through a rights issue, intends to boost AHLL's business operations. AHLL, known for its comprehensive healthcare services, will remain a controlled subsidiary after the transaction.

Apollo Hospitals Enterprises has unveiled plans to invest Rs 103.2 crore in its subsidiary, Apollo Health and Lifestyle (AHLL), via a rights issue. This move, aggregating Rs 1032.60 million, will see the company acquiring 35,12,107 equity shares at Rs 294 each.

In a rights issue, a company invites existing shareholders to purchase additional shares at a discounted rate, generating capital without new investors. Apollo Hospitals disclosed this transaction falls under related party transactions, affirming the deal is at arm's length.

AHLL focuses on offering premium healthcare services through owned and franchised facilities, including specialty hospitals and clinics. The subsidiary recorded a turnover of Rs 13,650 million for the fiscal year ending March 2024. The latest investment aims to reinforce AHLL's business, working capital, and expansion plans.

(With inputs from agencies.)