Apollo Hospital Enterprises, a leading healthcare provider in India, has announced a significant change in its shareholding structure. Suneeta Reddy Pottipati, a key promoter of the company, has sold a substantial portion of her stake, marking a notable development in the company's ownership landscape.

Block Deal Details

Suneeta Reddy Pottipati executed a block deal, selling 18.97 lakh equity shares of Apollo Hospital Enterprises. The transaction was valued at approximately Rs 1,489 crore, with shares priced at Rs 7,850.00 each. This price represents a modest 1% discount compared to the previous day's closing price.

Impact on Promoter Shareholding

The sale has resulted in a reduction of the promoter group's shareholding in Apollo Hospital Enterprises:

• Previous promoter group shareholding: 29.3%
• Current promoter group shareholding: 28.0%

This transaction effectively reduces the promoter group's stake by 1.3 percentage points.

Debt Reduction and Pledge Decrease

The proceeds from this sale will be utilized to address the promoter group's outstanding debt. As a result of this transaction:

• The pledged holdings of the promoter group will significantly decrease from 13.1% to approximately 2% of their total holdings.

This move demonstrates the promoter group's commitment to reducing their financial leverage and strengthening the company's financial position.

Market Response and Stock Performance

Following the announcement, Apollo Hospital shares showed resilience in the market:

• Current trading price: Rs 7,951.00 (up 0.32%)
• Performance compared to Nifty 50: Outperforming (Nifty 50 declined 0.64%)

The stock has demonstrated strong performance over different time frames:

• 12-month gain: 16.80%
• Year-to-date gain: 9.36%

Analyst Outlook

The market sentiment towards Apollo Hospital Enterprises remains largely positive:

The average price target set by analysts stands at Rs 8,570.90, suggesting a potential upside of 7.8% from the current trading price.

Future Outlook and Commitment

The promoter group has reaffirmed its commitment to Apollo's growth across its healthcare verticals. They have stated that there are no plans for further stake reduction in the foreseeable future, emphasizing their focus on creating long-term value in each of Apollo's business segments.

Morgan Stanley served as the sole bookrunner for this significant transaction, facilitating the block deal on the stock exchanges.

This strategic move by the promoter group not only reduces their debt burden but also demonstrates their confidence in the company's future prospects, potentially setting the stage for Apollo Hospital Enterprises' continued growth and expansion in the healthcare sector.

Apollo Hospital Enterprises, a leading healthcare provider in India, is set to witness a significant share sale by one of its promoters. Suneeta Reddy Pottipati, a key promoter of the company, has announced plans to sell shares worth Rs 1,394.5 crore through a block deal, representing a 1.25% stake in the hospital chain.

Block Deal Details

The floor price for the share sale has been set at Rs 7,747.00 per share, which represents a 2.26% discount from the previous closing price of Rs 7,926.50. Morgan Stanley has been appointed as the sole bookrunner for this transaction, overseeing the execution of the block deal.

Strong Quarterly Performance

The announcement of the share sale comes on the heels of Apollo Hospitals' impressive quarterly results:

• Net profit rose by 42% to Rs 433.00 crore, surpassing analyst estimates of Rs 377.20 crore
• Revenue grew by 14.9% year-on-year to Rs 5,842.00 crore
• Operating income increased by 26.2% to Rs 852.00 crore
• EBITDA margin expanded to 14.6%

Stock Performance and Analyst Outlook

Apollo Hospitals' stock has shown robust performance in recent periods:

• Gained 17.29% over the past 12 months
• Up 8.55% year-to-date

The company continues to enjoy strong support from analysts:

• Out of 31 analysts covering the stock, 27 maintain buy ratings
• The average price target stands at Rs 8,570.90, suggesting an 8.1% upside potential from the current levels

This block deal by the promoter and the company's strong financial performance underscore the dynamic nature of Apollo Hospitals' market position in the healthcare sector. Investors and market watchers will likely keep a close eye on how this transaction unfolds and its potential impact on the stock's performance in the coming days.