KIMS to Invest ₹71.28 Crore in Subsidiary KIMS Hospital Bengaluru

On May 20, 2024, Krishna Institute of Medical Sciences Limited (KIMS) announced to the exchanges that on May 19, 2024, it had signed an agreement to invest up to ₹71,27,50,000 by subscribing to 7,12,750 Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹1000 each in KIMS Hospital Bengaluru Private Limited.

KIMS Hospital Bengaluru Private Limited is a wholly owned subsidiary of Krishna Institute of Medical Sciences Limited. As of May 20, 2024, the total paid-up equity share capital of KIMS Bengaluru is ₹1,00,000, and it has yet to start operations. It belongs to the healthcare industry.

Regarding the objective of the investment, the company stated that the proceeds of Preference share capital are planned to be used to repay an unsecured loan along with interest advanced by KIMS to its wholly-owned subsidiary (KIMS Bengaluru). The unsecured loan was advanced to acquire land, buildings, and further capex.

The acquisition is expected to be completed within 3 months from the date of execution of the agreement.

Meanwhile, in Q4 FY 2024, Krishna Institute of Medical Sciences Limited reported consolidated revenue of ₹637.6 crore, an increase of 9.8% on YoY and 4.7% on a QoQ basis. The company’s consolidated EBITDA (Pre-INDAS and excluding Other Income) declined by 2.3% on a YoY and grew by 6.4% on a QoQ basis ₹153 crore.

Earlier this year, in March 2024, Krishna Institute of Medical Sciences Limited announced that it plans to enter into definitive agreements to lease land for 99 years and purchase a building to establish a new hospital in Thane.

The company stated that this multi-speciality hospital would offer state-of-the-art tertiary and quaternary care. It will cover approximately 2.59 acres of land and have a total built-up area of 2.72 lakh sq. ft. The hospital will have a capacity of around 300 beds and an investment of approximately ₹500 crore. This will be KIMS’ first hospital in the Mumbai-Thane region and the third in Maharashtra, following its presence in Nagpur and Nashik. The Nashik unit is set to open in Q1 FY 2025.

On May 21, 2024, the share price of Krishna Institute of Medical Sciences Ltd opened at ₹1,952.20, touching the day’s low at ₹1,895.05, as of 9:32 AM on the NSE.

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