The Hindu Business Line : Apollo Hospitals offloads 25 pc stake in Apollo Health Street

APOLLO Health Street Ltd, a global healthcare company which offers IT solutions and operates as a BPO too, has ceased to be a subsidiary of Apollo Hospitals Enterprise Ltd, thanks to the parent company's decision to offer a little over 25 per cent stake to two foreign institutional investors — Eliza Holdings and Maxwell (Mauritius) Pte Ltd.

The two overseas investors have invested approximately $7.5 million in the venture. In return, Apollo Health Street has issued 40.50 lakh fresh equity shares of Rs 10 each. The aggregate investment in rupee terms is Rs 4.05 crore.

As a result of the move, Apollo Hospitals Enterprise's stake in Apollo Health Street has dropped from a controlling 73.41 per cent, as on March 31, 2005, to a minority 48.3 per cent.

It may be mentioned here that Maxwell (Mauritius) Pte Ltd is an "indirect" wholly-owned subsidiary of Temasek Holdings, which, as the annual report of Apollo Hospitals has indicated, is the investment arm of the Singapore Government.

It may be recalled that during 2004-05, Maxwell (Mauritius) had picked up a stake in Apollo Hospitals too. The shares were issued at a premium of Rs 236 per share.

It was learnt that the funds generated from this deal would be used by Apollo Health Street in expanding and strengthening its operation in India. A part of it would be invested in creating infrastructure in North America too.

Apollo Health Street has two subsidiaries. The first, Apollo Health Street Inc., is incorporated in the US. The Indian venture holds 100 per cent stake in the American outfit. The second subsidiary is the Hyderabad-based Medvarsity Online Ltd. As on March 31, Apollo Health Street held 85 per cent in this company.

"Effective holding of Apollo Hospitals Enterprise in Medvarsity Online Ltd and Apollo Health Street Inc is 64.44 per cent and 75.81 per cent, respectively," the annual report said.

Eyeing medical tourism

APOLLO Hospitals has listed medical tourism as one of its `new corporate initiatives', an area that is said to be emerging on the basis of a steady rise in the inflow of patients from developed nations.

Serving as the background is the fact that India is set to firm up its position on the world map as a healthcare destination. As the directors' report to shareholders notes, the country is "well poised" to come up on this front.

The company has also stated that its telemedicine network has been extended to cover a number of areas in India and Sri Lanka. The network will be enlarged further in the years ahead.

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