Part-stake sale at Healthco infuses growth capital

Company
29 Apr 2024
5 Min read 
  • Apollo Hospitals Enterprises (AHEL) proposed equity capital infusion from Advent International at Apollo Healthco level 
  •  Deal integrates Keimed (distribution) business with AHL 
  •  Aims to infuse growth capital and establish a strong pharmacy franchise.
  •  The deal values AHL at INR145b (USD1.8b) and Keimed at INR80b 
  •  Expected valuation of EV/sales of 1.9x 
  •  Aims to drive synergies and enhance profitability throughout the value chain.
  •  Management intends to scale up the combined business to INR250b over the next three years 
  •  Expects 48% earnings CAGR over FY24-26.
  •  Financials Snapshot for FY24E and FY25E 
  •  Sales, EBITDA, Adj. PAT, EBIT Margin, Cons. Adj. EPS, EPS Gr., BV/Sh., Net D:E, RoE, RoCE, Payout, Valuations.
  •  Shareholding pattern, stock performance, and transaction details 
  •  AHL proposes to raise equity capital of INR24.8b from Advent International for a stake of 16.9% in two tranches.
  •  Ratios, cash flow statement, and balance sheet 
  •  Expect 48% earnings CAGR over FY24-26 
  •  Valuation on an SOTP basis to arrive at a PT of INR7,280.
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