Mauritius-based firm Healthcare Investment (HIL) is picking up around 8.5% stake in Apollo Health Street (AHS), the healthcare BPO arm of India’s largest healthcare company, Apollo Group, for around INR 61 crore. This values the company at just over Rs 700 crore. HIL is learnt to the healthcare investment arm of a leading financial firm. However, ET could not identify the name of the financial firm. AHS is planning to offload 20% stake of its post-issue paid up capital to raise around INR 160-170 crore from the capital market through its initial public offer (IPO). According to sources, AHS is now allotting 23 lakh shares to Healthcare Investment at INR 260 per share through issue of equity shares or compulsorily convertible preference shares as part of the pre-IPO placement. At present, the Reddy family, the promoters of the Apollo Group, holds around 60% stake in AHS, which is expected to come down to around 48% after the IPO. AHS officials declined to respond to a query from ET citing company’s silent period. The company would use the funds issue to repay the US$ 120 million debt to Bank of India and Barclays Bank. Last year, the healthcare BPO firm raised debt to fund the acquisition of the US-based BPO Zavata for US$ 170 million. AHS plans to repay about INR 96 crore to these banks while the rest of the fund would be used for the expansion of its upcoming facility in Chennai.