Apollo Hospitals shares dip after IHH sells 6% stake

Share price of Apollo Hospitals declined by over five per cent on Friday after a report said that Malaysia-based sovereign fund Khazanah's arm Integrated Healthcare Holdings (IIH) sold six per cent stake in the company. IHH already have invested into hospital sector in India other than the stake in Apollo Hospitals.

The stock price has come down almost 5.31 per cent to Rs 1,246 following the stake sales for $160 million in Apollo hospital.

IHH held around 10.85 per cent equity share in Apollo Hospitals Enterprise Ltd (AHEL), till the end of December 2016. A potential exit from AHEL may help IHH to infuse more money into its own hospital business in India. It has acquired around 73.4 per cent stake in Global Hospitals in August 2015, for $195 million.

"They (IHH) are looking at India at a much bigger play now, and with a Rs 1,800 crore valuation at present, selling the 11 per cent share in AHEL could help them to subsidise their India play," said a source close to the development on condition of anonymity.

The share price, which was at Rs 1,315.90 during the close on Thursday evening, went to a weekly low of Rs 1,242 on Friday after noon.