The board of Apollo Hospitals Enterprise Ltd. (AHEL) has approved the merger of its two wholly owned subsidiaries with itself.
The deal does not entail cash consideration. Apollo Home Healthcare (India) Ltd. is a public limited company whereas Western Hospitals Corporation Pvt. Ltd. (WHCPL) is a private firm. These wholly-owned subsidiaries are not listed in India or abroad.
The merger, of Apollo Home Healthcare (India) Ltd. and Western Hospitals Corporation Pvt. Ltd. (WHCPL) with the parent, has been proposed to enable effective management and unified control of operations; to create economies in administrative and managerial costs and to reduce duplication of administrative responsibilities, among others, AHEL said in a regulatory filing. As of March 31, 2019, Apollo Home reported a revenue of ₹43 lakh and Western Hospitals’s revenue stood at ₹1.04 crore. Apollo Home is engaged in the business of providing healthcare services, including doctor’s consultations, nursing services, physiotherapy and medical equipment direct to patients’ homes apart from offering paramedical services in hospitals to critically ill patients. WHCPL was engaged in the business of providing healthcare services. AHEL, meanwhile, reported a 8.99% increase in its standalone net profit for the third quarter ended December 2019 to ₹94.75 crore due to increase in revenue in healthcare services, pharmacy and clinics business.
In this quarter, revenue from operations grew to ₹2,529.50 crore from ₹2,169.04 crore.
The board also declared an interim dividend of ₹3.25 per equity share of ₹5 each. The same will be paid by March 5.
