Delhi Govt mulls stake change in Apollo Hospital

The issue arose when TWL Holding — a Singapore-based company which controls 24 per cent of IMCL’s stock — announced plans to disinvest by the end of this month. ‘‘The company had invested as a closed-ended fund for 10 years and as per law has to disinvest,’’ said an official who does not want to be quoted.

So, a large block of shares will be available in the market by the end of this month. With a 26 per cent stake, the Delhi government is the highest stakeholder in IMCL, followed by Apollo Hospital Enterprise Ltd with 25 per cent. The remaining 25 per cent equity is floating stock in the market.

When contacted, S.P. Agarwal, Principal Secretary, Health of the Delhi government confirmed having received the proposal from Apollo Hospital. ‘‘We have got a proposal saying TWL Holding is going to disinvest. It is an important issue and is under discussion, the government is likely to take a view on it soon,’’ said Agarwal.

When contacted, Apollo refused to comment on the issue. ‘‘At this point, we will not want to comment on any financial issue,’’ said Ann Moncure, Managing Director, Indraprastha Apollo.

The Apollo proposal says the two major promoters — Delhi government and Apollo group — should buy the stock from the market. As per Sebi rules, the promoters not only have to buy 24 per cent stake from TWL holdings, they will also have to make an open offer for a further 20 per cent stake.

Assuming current market prices (the IMCL share is quoting at around Rs 35), the 44 per cent stock costs Rs 165 crore — Rs 83 crore for each promoter.

While the matter is with the finance department, the officials in the health ministry are meeting overtime to work out a solution.

According to officials, the trouble is that the government doesn’t have provision for such purchases in its budget. Sources add that Delhi government is even considering reducing its share in the hospital from 26 to 10 per cent.