New Delhi, Oct. 7 -- Krishna Institute of Medical Sciences Ltd (KIMS), backed by homegrown private-equity firm ChrysCapital, is set to buy significant stake in three healthcare assets that it has been operating so far.
The acquisition comes after the Mumbai-listed hospital chain, which operates corporate hospitals under the KIMS Hospital brand, roped in the World Bank Group's private sector investment arm the International Finance Corporation (IFC) as qualified institutional buyer in a fundraising round in July.
KIMS Hospital will acquire a 22% stake in Hyderabad-based Splendid Hospitals, and purchase up to 51% stake each in two Andhra Pradesh-based hospitals: Insignia Healthcare and Sarvottam Health Care.
The company will spend between Rs 40 crore (around $4.2 million) and Rs 80 crore (around $8.3 million) to acquire the stakes in Splendid and Sarvottam, while Insignia will be acquired for Rs 30.35 per share, according to KIMS' stock market disclosures.
These assets were run by KIMS under operations-and-maintenance (O&M) model.
IFC's funding
In July, KIMS Hospital concluded a qualified institutional placement (QIP), selling shares to several buyers including mutual fund houses at an issue price of Rs 755 per share, raising a total of Rs 1,500 crore.
IFC had proposed to invest $15 million (Rs 150 crore) in equity as part of a follow-on public offering by KIMS Hospital for a 10% stake in the company.
According to a disclosure, KIMS Hospital will use the proceeds to fund its overall operations and growth strategy, including the expansion of its hospital network through a combination of greenfield and brownfield acquisitions or expansion. KIMS plans to add about 2,300 beds over the next three years.
The company would also use the proceeds to reduce its own debt or that of its subsidiaries of Rs 1,100 crore.
KIMS has stated in prior earnings calls that its debt has peaked at over Rs 3,000 crore and should trend lower. The company plans to fund further greenfield expansion by retiring some debt and using its cash flows. These projects will take three to four years before commissioning.
In its fourth quarter FY26 call with analysts, the company said it might pursue two small acquisitions over the next two quarters, totaling 400-500 beds.
Expanding through acquisitions
Earlier this year, the ChrysCapital-backed company approved a further increase in its investment limit of up to Rs 100 crore to acquire additional shares in Sarvejana Healthcare Pvt Ltd, which operates Sunshine Hospital. The transaction was to be executed in one or more tranches by acquiring shares from minority shareholders, funded through cash consideration.
Sunshine Hospital is a material subsidiary of KIMS, which holds 75.53% stake in the hospital through Sarvajena Healthcare. The proposed investment is aimed at increasing KIMS's shareholding in the Hyderabad-based healthcare provider.
Besides the acquisition, KIMS has opened several hospitals in FY26 including another hospital in Hyderabad; two in Guntur, Andhra Pradesh; two in Maharashtra at Thane and Sangli; and two in Bengaluru, Mahadevapura and Electronic City; and one in Kollam, Kerala. The company has also set up fertility centers at Hyderabad and Guntur.
Published by HT Digital Content Services with permission from VC Circle.