Apollo Hospitals Enterprise announced that it will raise Rs 2,475 crore through private equity firm Advent International for its unit Apollo HealthCo. This unit manages Apollo's Apollo 24/7 vertical.

Additionally, there are plans to merge Keimed, a promoter-owned wholesale pharma distribution business, with Apollo HealthCo over the next 24 to 30 months.

Of the total Rs 2,475 crore consideration, Rs 860 crore will be used for the expansion of Apollo HealthCo and Rs 890 crore will be paid to the parent company AHEL. Advent will invest in compulsory convertible instruments over two tranches to secure a 12.1 per cent stake in the merged pharmacy entity, which will have an enterprise value of Rs 22,481 crore.

"If you look at the fund of Rs 2,475 crore that is coming into the company, Rs 890 crore comes back to AHEL. Clearly, there is an opportunity for us to use some of this money for the growth of Apollo itself. It should be organic and inorganic growth in our core strategic markets," said Krishnan Akhileswaran, Chief Financial Officer of the company.