Apollo Hospitals to sell assets to reduce promoter pledged shares

The company had used the pledged share funds to infuse money into the joint venture Apollo Munich Health Insurance Company to meet the solvency ratio and both the partners had to invest into it

The promoters of Apollo Hospitals are planning to cut the level of pledged shares by at least 50 per cent in the next six months. The promoters have around 34.40 per cent stake in Apollo Hospitals Enterprise Ltd (AHEL). And, almost 74 per cent of that stake was pledged till the end of December 2018. Between December and January, there has been a 5 per cent increase in pledges.

Addressing investors on Monday, Suneeta Reddy, managing director, AHEL, said that 5 per cent shares were pledged because of unwinding of the KKR instrument, which was a back ended structure. The