India: IFC invests $67m in Apollo Health and Lifestyle for 29% stake

Photo: Reuters

Apollo Health and Lifestyle Ltd (AHLL) has raised $67 million for a 29 per cent equity stake from International Finance Corporation (IFC), the private lending arm of the World Bank, according to a press statement.

“IFC along with its associated entity has has made a primary equity infusion of Rs 450 crore thereby acquiring 29.03 per cent stake in Apollo Health and Lifestyle Ltd,” Apollo Hospitals Enterprise Ltd said in a BSE filing.

As per the deal, while IFC will invest half of the money from its own account, the remaining half will be pumped in by IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company.

AHLL, owned by Apollo Hospitals Enterprise, will use the stake sale proceeds to expand its small-format healthcare centers across India, improve access to quality healthcare and to create new jobs, the statement added.

Apollo Hospitals is India’s largest healthcare provider by market value, and runs large private hospitals in Hyderabad, Chennai and New Delhi.

“The investment will help us meet the ever-increasing demand for quality healthcare in the country,” said Neeraj Garg, CEO of AHLL. “Apollo values its longstanding relationship with IFC, including IFC’s experience and deep knowledge of the healthcare sector in India,” Garg added.

AHLL will use IFC’s equity investment to open nearly 1,000 medical facilities, laboratories and collection centers. The investment will create over 4,000 new jobs across India for healthcare professionals, including doctors, nurses, and technicians, said the release.

“Our investment in Apollo reflects our commitment to private sector supporting the delivery of better health outcomes. It addresses issues of access, quality, and affordability across the country,” said Henrik Elschner Pedersen, IFC Senior Manager, Consumer and Social Services, Asia.

“Since 2005, IFC has made multiple rounds of debt and equity investments in Apollo Hospitals to help the company with its expansion plans and increase access to affordable healthcare in the country,” Pedersen added.

IFC’s committed portfolio in India is over $5 billion as of June 30, 2016. In FY16, IFC committed $1.1 billion in new investments. It has so far invested over $477 million in the healthcare space in India, representing 28 per cent of its global healthcare portfolio. IFC’s portfolio companies  in the country include Max Healthcare, NephroPlus, Eye-Q Vision, and Portea.

Also Read: IFC partners with Apollo Global for buying distressed assets in EMs

India: Apollo Hospitals ties up with HESCG to develop hospital in China