Apollo 24|7 Secures Rs 2,475 Crores Investment from Advent International
Written by Arushi Sharma
Apollo HealthCo finalizes an agreement with Advent International to raise equity capital and integrates Keimed into its operations. The merger positions Apollo as a leader in India's healthcare industry, aiming to deliver genuine medicines to millions and drive significant revenue growth.
Apollo HealthCo has finalized a binding agreement to raise equity capital of Rs 2,475 Crores from Advent International. Additionally, Apollo 24|7 has entered into a framework agreement to integrate 100 per cent of Keimed, India’s wholesale pharma distributor, gradually over the next 24-30 months.
Advent's investment will be made through compulsory convertible instruments over two tranches, securing a 12.1 per cent stake in the merged entity. This values the combined entity at an enterprise value of Rs 22,481 Crores, with Apollo 24|7 valued at Rs 14,478 Crores and Keimed at Rs 8,003 Crores. Post-merger, Keimed shareholders will hold a maximum of 25.7 per cent stake in the combined entity, while AHEL will retain the largest controlling stake of at least 59.2 per cent. Corporate approvals are pending for the merger.
Dr Prathap C Reddy, Chairman of Apollo Hospitals Group, expressed pride in Apollo 24|7's reach of over 33 million Indians and hailed the investment and merger as steps towards becoming one of India's leading retail health companies.
Shobana Kamineni, Executive Vice Chairperson of Apollo Hospitals Enterprise, highlighted the potential to provide genuine medicines to 1.4 billion Indians within 24 minutes to 24 hours, 7 days a week, leveraging Apollo's brand, team, and technology.
Suneeta Reddy, Managing Director of Apollo Hospitals Enterprise, emphasized the consumer-centric approach and the combined entity's potential to deliver Rs 25,000 Crores of revenue in 3 years with 7-8 per cent EBITDA.
Shweta Jalan, Managing Partner and Head of Advent India, underscored Advent's commitment to investing in India's healthcare sector and its partnership with the Apollo franchise.
Pankaj Patwari, Managing Director of Advent India, expressed excitement about building India’s largest Omnichannel Health-tech platform and bringing the best of Advent to support Apollo's vision.
Veda Corporate Advisors served as the exclusive financial advisors, while Shardul Amarchand Mangaldas & Co, AZB & Partners, and Cyril Amarchand Mangaldas were the legal advisors for the transactions.
The investment and merger signify a significant milestone for Apollo 24|7 and pave the way for accelerated growth and value creation in India's healthcare landscape.