Apollo Hospitals Enterprise is set to strengthen its position in the healthcare sector with two significant moves: a strategic acquisition and a new facility development.

Acquisition of IFC's Stake in AHLL

Apollo Hospitals Enterprise has announced plans to purchase International Finance Corporation's (IFC) 30.8% stake in its subsidiary, Apollo Health and Lifestyle Limited (AHLL). The all-cash transaction, valued at ₹1,254.07 crore, will be executed at ₹301.09 per share. This acquisition will significantly boost Apollo's ownership in AHLL from 68.62% to 99.42%.

AHLL, which reported a turnover of ₹1,553.50 crore, is poised for potential growth under increased Apollo control. The healthcare giant stated that this acquisition would enable "sharper capital allocation and greater focus on high-potential segments."

New Oncology Facility in Gurugram

In a parallel development, Apollo Hospitals is investing ₹573.00 crore to establish a comprehensive oncology facility in Gurugram. This facility will be part of a larger 500-bed hospital project.

The oncology center will feature cutting-edge technology, including the Single Gantry Proton Proteus One System. This installation will mark India's third proton therapy facility, positioning Apollo at the forefront of cancer treatment in the country.

Ambitious Growth Plans

Apollo Hospitals has set an ambitious target to double its oncology therapy revenue to ₹5,000.00 crore within the next three to four years. This goal aligns with the company's strategic focus on high-growth segments of healthcare.

Market Performance and Analyst Outlook

Despite these positive developments, Apollo Hospitals' stock closed 0.19% lower in the previous trading session. However, the stock has shown strong performance over a longer term, gaining 25.9% over the past six months.

Nomura, a prominent financial services firm, maintains a neutral rating on Apollo Hospitals with a target price of ₹6,856.00. This target represents a 12.8% downside from the previous closing price of ₹7,864.50.

The stock continues to enjoy favorable sentiment among analysts. Out of 32 analysts covering Apollo Hospitals, 28 have issued buy ratings, three maintain hold ratings, and only one recommends selling.

As Apollo Hospitals continues to expand its footprint in the healthcare sector, investors and industry watchers will be keenly observing how these strategic moves translate into financial performance and market position in the coming years.

Apollo Hospitals Enterprise Limited (AHEL) has announced two significant strategic moves aimed at strengthening its position in the Indian healthcare market. The company's board has approved the acquisition of a 30.58% stake in its subsidiary, Apollo Health and Lifestyle Limited (AHLL), and plans to establish a state-of-the-art oncology facility in Gurugram.

Acquisition of AHLL Stake

AHEL will acquire 41,650,368 equity shares, representing a 30.58% stake in AHLL, from International Finance Corporation (IFC) and IFC EAF Apollo Investment Company. The transaction, valued at ₹12,540.68 million (₹1,254 crore), is priced at ₹301.09 per share. Upon completion, AHLL will become a 99.42% subsidiary of AHEL, with the remaining 0.58% held in the employee stock ownership plan (ESOP) pool.

Ms. Suneeta Reddy, Managing Director of AHEL, commented on the acquisition: "This acquisition is a decisive step that will allow for sharper capital allocation and a greater focus on select high-potential segments. With disciplined growth, improved profitability, and enhanced return on capital employed (ROCE), we see AHLL becoming a value-accretive driver in Apollo's integrated healthcare portfolio."

The acquisition is subject to approval from the Competition Commission of India and is expected to be completed by November 2025.

AHLL's Business Profile

AHLL, incorporated on November 10, 2000, is engaged in providing comprehensive, high-quality healthcare services. Its operations include specialty hospitals, clinics, diagnostic centers, sugar clinics, dental clinics, and dialysis centers. The company has shown consistent growth, with its consolidated turnover reaching ₹15,535 million for the financial year ended March 31, 2025.

New Oncology Facility in Gurugram

In a separate development, AHEL has approved the establishment of a comprehensive oncology facility in Gurugram. The project, which includes a Single Gantry Proton Proteus One System, will involve an investment of ₹5,730 million (₹573 crore).

Key details of the oncology facility:

• Project: Comprehensive Oncology center with Proteus One, single gantry Proton Beam Therapy system
• Investment: ₹5,730 million
• Financing: Internal Accruals
• Capacity: Additional 350 patients per annum
• Completion Target: By FY 2029

This facility will be Apollo's third Proton Therapy installation in India, following its flagship center in Chennai and an ongoing installation in Hyderabad. The Gurugram center will be part of the Phase 2 expansion of Apollo's upcoming 500-bed hospital in the city.

Dr. Prathap C Reddy, Founder-Chairman of AHEL, expressed his vision for the project: "At Apollo, we are driven by an unyielding passion for excellence in healthcare. Our commitment is to ensure that India remains at the forefront of medical innovation, providing patients with access to the world's most advanced treatments. The addition of next generation proton therapy to our Apollo Proton Cancer Centres further solidifies our position as a global leader in Proton Therapy."

Strategic Implications

These strategic moves align with Apollo's goal to double its oncology business to over ₹5,000 crore in 3-4 years. The company aims to achieve this through high-end personalized care, precision medicine, and deeper penetration into India's largest metros, along with expansion in other cities.

Ms. Sangita Reddy, Joint Managing Director of AHEL, highlighted the potential impact of the AHLL acquisition: "By bringing AHLL fully into Apollo's fold, we are sharpening the business focus across its four verticals—primary care & diagnostics, birthing & women's health, ambulatory care, and dialysis & dental. This sharper focus will enable AHLL to scale more effectively, innovate faster, and serve patients with care models that are more personalized, accessible, and future-ready."

As Apollo Hospitals continues to expand its healthcare portfolio, these strategic initiatives are expected to strengthen its market position and enhance its ability to provide comprehensive, high-quality healthcare services across India.