Apollo Hospitals Enterprise jumped 4.74% to Rs 1494.50 after India’s insurance regulator approved stake sale in Apollo Munich Health Insurance Company to HDFC.
Apollo Hospitals Enterprise said Insurance Regulatory and Development Authority of India (IRDAl) on 1 January 2020 approved HDFC’s bid to acquire 50.8% stake in Apollo Munich Health Insurance Company (AMHI). Competition Commission of India (CCI), and Reserve Bank of India (RBI) have already approved the deal.
In June 2019, HDFC had agreed to acquire the entire 50.8% stake of Apollo Hospitals Group in a health insurance joint venture with German reinsurer Munich Re Group as part of its strategy to tap this potential growth market.
Post the completion of the acquisition, Apollo Munich would be merged with and into HDFC ERGO, subject to the approval of the National Company Law Tribunal, Mumbai.
On consolidated basis, Apollo Hospitals reported a 36% rise in net profit to Rs 86.24 crore on a 17.8% rise in net sales to Rs 2840.74 crore in Q2 September 2019 over Q2 September 2018.
Apollo Hospitals Enterprise is engaged in offering healthcare services and operating standalone pharmacies. The company’s segments include healthcare, pharmacy and others.-Business Standard