The Hindu Business Line : Apollo Hospital moves up on acquisition binge

THE stock of Apollo Hospitals today moved up on acquisition binge by certain sections of existing stakeholders. The stock moved up 2.75 per cent to Rs 188.95. The 52-week high is Rs 198.40. There was a large deal of 13,671 shares on the NSE. Of the total traded quantity of 2.35 lakh shares, 50.4 per cent was presented for delivery on the NSE.

A dealer of a leading brokerage said that the investors understood to be close to promoters and a few other groups have simultaneously stepped up their market mop-up operation. According to sources, a kind of share-cornering operation is on, where opposing groups are ready to pay up considerably higher price .

"The fundamental reason, cited by the investors, behind offering higher valuation was better growth prospect of the company after adopting a new business model during the 2003-04. The new model positioned it as a complete medical outsourcing point for overseas clients and institutions. This is expected to yield exponential growth in EPS in the coming quarters," claimed a market analyst.

The promoters, as on March 31, 2004, had 33.64 per cent stake, down from 34.31 per cent as on March 31, 2003. The FII holding has gone up to 11.46 per cent from 5.49 per cent during the last one year. The public holding declined from 23.11 per cent to 20.83 per cent. The 19.69 per cent holding by TWL Holding Ltd, however, remain unchanged. Total foreign holding, including GDR, was placed at 35.03 per cent on March 31 against 29.58 per cent a year ago.

According to Mr Ketan Thacker of Anagram Stockbroking, the advanced and reliable treatment, quick access to services and attractive cost advantages are making India a hot spot for medical tourism. "For instance, $40,000 treatment in Australia would cost only $17,000 here with an additional 7-day trip to Delhi, Agra and Jaipur inclusive of accommodation in 5-star hotels. On the other hand, the waiting period for certain surgery in the UK and the US are as long as 6 months to one year," he pointed out.

Equipped with recognition from some credible global organisations Apollo is in the process of taking advantage of hospital service outsourcing business.

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