The Reddy family that administers Apollo Hospitals Enterprise Ltd, one of India’s largest private hospitals is currently suffering due to heft debts of Rs.3000 crores. Thus the family has decided to sell some of their assets. Due to this decision, by the end of this year, they could reduce the debts to 2500 crores.
At this instant, Apollo administrators are planning to sell 13 Nursing colleges and 2 Medical colleges. Last month, Apollo sold the Munich Health Insurance shares to HDFC. Apart from selling assets, Apollo is accommodating different ways to earn money to pay the debts. Also, Apollo has invited outside investors for the funding.
“The aim is to reduce the Apollo shares pledged by the family as collateral to lenders, to 20% of their total holding in the company from about 78% now, said Suneeta Reddy, Apollo’s managing director and one of the four daughters of founder Prathap Reddy. Apollo states that they would execute many plans in the future to resolve the issue as soon as possible.
News Courtesy: Livemint