Valuation of Apollo HealthCo will go up by many multiples due to integration of Keimed: Suneeta Reddy, Apollo Hospitals
«The most important thing to understand is that we believe that the valuation of Apollo HealthCo will go up by many multiples and this will happen because of the integration of Keimed,» says Suneeta Reddy, MD, Apollo Hospitals.
Congratulations on firstly the deal. Outline for us what Advent really brings on the table besides of course growth capital and how is it that you see the synergies build in.
The most important thing is that Advent is bringing capital to the table. They are bringing 300 million for 12.1% of the combined entity, which is the current Apollo HealthCo plus Keimed, so they will get 12.1%. In terms of their exit, there is an optionality that can be triggered post five years and I think we have many options on how to handle their exit.
The most important thing to understand is that we believe that the valuation of Apollo HealthCo will go up by many multiples and this will happen because of the integration of Keimed.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisit
It will enable the growth of the private label which is currently only 17% of the business and the scale that it will bring which is definitely the most important thing. Keimed has over 70,000 pharmacies that it supplies to and if you add the fact that Apollo HealthCo is present in 19,000 pin codes and the fact that it has 30 million
