Apollo Health to raise 500 cr
Apollo Health to raise 500 cr. Apollo Health and Lifestyle Ltd (AHLL), a subsidiary of Apollo Hospitals Group, on Wednesday announced plans to raise Rs 500 crore for funding its expansion plans.
It operates primary care and specialty clinics such as Apollo Sugar
Hyderabad: Apollo Health and Lifestyle Ltd (AHLL), a subsidiary of Apollo Hospitals Group, on Wednesday announced plans to raise Rs 500 crore for funding its expansion plans.
The company, which was established for world class healthcare services in the country, is currently in talks with global private equity players to mop up the funds. It is expecting to dilute around 20 per cent of its stake to the new investors and the deal is likely to be closed by the year-end.
This decision represents a strategic intent by AHLL to expand its network of across India, where it already enjoys a strong foothold through the presence of its varied specialty formats in 17 states with 205 customer touch points across the country, AHLL said in a release.
“Currently clocking revenues of around 400 crore, we are focusing on growing our primary care offerings - Apollo Clinics, Apollo Diagnostics and Apollo Sugar and our specialty formats – Apollo Spectra and Apollo Cradle.
We have multiplied revenues four times in the past three years and are targeting to grow at the same rate in the next three years,” said Neeraj Garg, CEO, AHLL. At present, the company serves over 5,000 customers daily, and with this next round of expansion, it plans to extend the Apollo brand of clinical expertise to many more people in the cities it operates in.
AHLL had made a significant acquisition earlier this year by acquiring Nova Speciality Hospitals, since rebranded as Apollo Spectra Hospitals. “The company is always open to acquisitions that are synergistic and reasonably valued,” Garg said.
Currently, Apollo Clinics division has 65 clinics spread across the country and is aggressively looking at setting up new clinics while also expanding its diagnostic division. With 10 Spectra hospitals and 10 Cradle hospitals, AHLL expects these two formats to aggressively drive growth in the next few years.
Besides, it is looking to establish 10 more Apollo Cradle hospitals. The healthcare segment has witnessed tremendous growth in the last decade, growing at the rate of 25 per cent.AHLL having leadership across segments is strongly poised to capitalize on this growth, he added.