Apollo Hospitals Enterprise (AHEL) announced its intention to acquire the 31 per cent stake held by International Finance Corporation (IFC) in Apollo Health and Lifestyle Limited (AHLL), a subsidiary of AHEL, for a consideration of ₹1,254 crore. Following the transaction, AHLL will become a 100 per cent subsidiary of AHEL, with 99.42 per cent held by AHEL and the balance in the ESOP pool.
According to the announcement, this acquisition will create greater flexibility for sharper capital allocation, disciplined growth, operational synergy with AHEL, and improved return on capital employed (ROCE) across businesses.
AHLL will continue to pursue its consumer-first philosophy through four focused verticals of out-of-hospital care: primary care and diagnostics, birthing and women’s health centres, ambulatory care centres, and dialysis and dental networks.
The company stated that each vertical offers an opportunity to drive focused growth strategies.
Primary Care and Diagnostics: Projected to grow at high-teen CAGR, this segment will focus on diagnostics, preventive health, and next-generation specialty testing including genomics, advanced molecular diagnostics, and personalised health screens.
Birthing and Women’s Health (Apollo Cradle): The strategy includes consolidating market leadership and enhancing maternity, fertility, and neonatal services across urban India.
Ambulatory Care Centres: Positioned as part of Apollo’s hospital cluster strategy in key metros, services will expand across urgent care, surgical care, and short-stay procedures.
Dialysis and Dental Networks: Plans include scaling independently and through partnerships to address large unmet demand in these healthcare segments.
The company noted that AHLL is a key part of Apollo’s network strategy. Through its physical network and proximity to neighbourhoods and markets, AHLL serves as the consumer gateway for Apollo Hospitals Group and connects all parts of the network to deliver integrated care.
Suneeta Reddy, Managing Director, Apollo Hospitals Enterprise said, “This acquisition is a decisive step that will allow for sharper capital allocation and a greater focus on select high-potential segments. With disciplined growth, improved profitability, and enhanced return on capital employed (ROCE), we see AHLL becoming a value-accretive driver in Apollo’s integrated healthcare portfolio.”
Sangita Reddy, Joint Managing Director, Apollo Hospitals Enterprise, added,
“IFC has been a valuable partner providing patient capital and facilitated the growth of AHLL. By bringing AHLL fully into Apollo’s fold, we are sharpening the business focus across its four verticals—primary care and diagnostics, birthing and women’s health, ambulatory care, and dialysis and dental. This sharper focus will enable AHLL to scale more effectively, innovate faster, and serve patients with care models that are more personalised, accessible, and future-ready.”
On the broader outlook, the announcement noted that India’s out-of-hospital healthcare market is projected for strong growth.
Diagnostics and Primary Care: Expected to grow at high-teen CAGR, supported by rising preventive health awareness, urbanisation, and adoption of advanced specialty tests such as genomics and precision diagnostics.
Ambulatory Care (Urgent and Surgical): Recognised as a globally proven model, ambulatory care is expected to gain traction in India as hospital clusters adopt cost-efficient, short-stay, and proximity-based delivery in metros and tier I cities.
Dialysis and Dental: Both segments are expected to expand, with dialysis projected to grow at 15 per cent CAGR driven by chronic kidney disease prevalence, and dental moving toward formalisation in a fragmented market.