The promoters had at one point pledged more than 70 per cent of their shares, and later raised nearly Rs 700 crore by selling around 5 million shares to reduce the number of pledged shares.
Of the 51.2 per cent stake which Apollo Hospitals
Group and a few employees are selling in AMHI to HDFC for Rs 1,347 crore, the listed entity AHEL holds around 9.96 per cent. The sale is expected to bring the listed entity a cash consideration of Rs 261.52 crore (subject to indemnity related and other contractually agreed deductions) and Rs 38.22 crore from Munich Health Holding AG towards joint-venture termination fee. This money will be used to bring down the debt.
Moreover, the transfer of the front-end of AHEL's pharmacy business to Apollo Pharmacies Ltd is expected to conclude before the end of the current fiscal year. This will also bring in some funds, which would be used to repay the debt. The company is expecting to bring down the net debt from the current levels of around Rs 3,100 crore to around Rs 2,600 crore by the end of the fiscal, once the Apollo Pharmacy deal is over.