Key Points:
- Suneeta Reddy selling 1.25% stake, holding drops to 2.11%.
- Apollo stock up 25% in 6 months.
- Q1 profit +42%, revenue +15%, strong growth outlook.
Suneeta Reddy, Managing Director and promoter of Apollo Hospitals Enterprise Ltd., is expected to sell a 1.25 percent stake in the healthcare chain through block deals estimated at Rs 1,395 crore, according to a report citing people familiar with the matter.
The proposed transaction involves 18 lakh shares at a floor price of Rs 7,747 per share. Morgan Stanley is likely to broker the deal, the report added.
Stake Sale and Shareholding Impact
Reddy, who is part of Apollo’s founding family, currently holds 3.36 percent of the company’s equity. Based on the reported deal size, her ownership would fall to 2.11 percent following the transaction. Despite the reduction, the Reddy family continues to retain a significant shareholding and management control in Apollo Hospitals, one of India’s largest private hospital chains.
The block deal is being priced slightly lower than market levels. Apollo Hospitals’ stock touched a record intraday high of Rs 7,947 on Friday before ending the session at Rs 7,920 per share. The floor price of Rs 7,747 represents a discount of just over 2 percent compared with the day’s close, a common practice in large secondary share sales aimed at attracting institutional investors.
Market Reaction and Performance
Investor sentiment around Apollo Hospitals has been upbeat in recent months. The company’s stock has advanced more than 9 percent in the past month and over 25 percent during the last six months. Year to date, shares are up over 7 percent, with the company’s price-to-earnings ratio now exceeding 71, one of the highest in the Indian healthcare sector.
The rally reflects optimism over Apollo’s ability to deliver sustained growth amid rising demand for healthcare services in India. Analysts note that demographic trends, increased health awareness, and the expansion of private healthcare facilities are likely to fuel further growth for the sector.
Strong Quarterly Results Add Momentum
Earlier this month, Apollo Hospitals reported a 42 percent year-on-year surge in consolidated net profit to Rs 433 crore for the quarter ended June 30, 2025. Revenue rose 15 percent to Rs 5,842 crore, while EBITDA expanded 26 percent to Rs 852 crore. The results were driven by strong performances across its core healthcare services, diagnostics, and growing digital health vertical.
The company also reported margin expansion, underscoring the benefits of operational efficiencies. Analysts say Apollo’s focus on its digital health platform, alongside its established hospital and pharmacy network, positions it well to capture future growth opportunities.
Broader Context on Block Deals and Regulations
The stake sale comes at a time when the Securities and Exchange Board of India (SEBI) is reviewing its block deal framework. Proposed changes include tighter norms on pricing ranges and deal sizes, with the aim of increasing transparency while maintaining market stability.
Block deals are often used by promoters, institutional investors, or large shareholders to offload substantial stakes without disrupting daily trading volumes. For investors, such transactions can provide opportunities to acquire significant positions at negotiated prices, though usually at a small discount to prevailing market rates.
Apollo Hospitals’ Strategic Role in India’s Healthcare
Founded in 1983, Apollo Hospitals has played a pioneering role in shaping private healthcare in India. With a network of hospitals, pharmacies, diagnostic centers, and digital health services, it is widely regarded as a bellwether for the sector.
Suneeta Reddy, who joined the company in 1989, has been a key figure in Apollo’s expansion. Under her leadership, Apollo has strengthened its focus on patient care, technology-driven solutions, and strategic partnerships. Even with the reduction in her shareholding, her continued role as Managing Director signals ongoing involvement in steering the company’s strategy.
