Shares of Apollo Hospitals Enterprises gained 1.6 percent intraday Wednesday after it announced sale of its stake in Apollo Munich Health Insurance Company.
Apollo Energy Company, an Apollo Hospitals Group Company, has approved divestment of 23.3 percent stake in Apollo Munich Health Insurance Company to its joint venture partner, Munich Re of Germany for Rs 163.5 crore.
The proposed transaction values Apollo Munich at Rs 703 crore.
"Post the proposed transaction, Apollo Hospitals Group’s shareholding in Apollo Munich shall reduced from 74.4 percent to 51.1 percent and correspondingly, Munich Re’s shareholding in Apollo Munich shall move to 48.7 percent and 0.2 percent will be held by employees, as per BSE filing.
Apollo Hospitals shall continue to hold its stake in Apollo Munich.
The opportunity for Munich Re to increase its shareholdings was provided through the decision of the Indian Government in March 2015 to increase the foreign direct investment cap in the insurance sector from 26 percent to 49 percent.