India's Apollo Hospitals gains on plans to hive off digital health business

Apollo Hospitals Enterprise

01/07/2025 05:20

** India's Apollo Hospitals APLH.NS climbs 4% to 7,539 rupees

** Hospital chain operator says it will spin-off and separately list its digital health and pharmacy unit within 18 to 21 months

** Analysts say demerger of the business unlocks value for existing investors

** Transaction enables APLH's shareholders to gain a direct shareholding in India's top omnichannel pharmacy chain, Macquarie says

** APLH has set "aggressive" revenue and EBITDA targets for the demerged entity, says Morgan Stanley

** If the new entity is able to meet these targets, it would generate value for shareholders - Morgan Stanley

** Session's gains erase stock's YTD losses

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))