New Delhi, July 22 -- Krishna Institute of Medical Sciences Ltd (KIMS), backed by homegrown private equity firm ChrysCapital, has brought in an offshore investor as part of its expansion strategy to add several thousand hospital beds, VCCircle has learnt.
The Mumbai-listed company, which operates hospitals under the KIMS Hospital brand, has roped in the World Bank Group's private-sector investment arm, the International Finance Corporation (IFC), as an investor in its recently concluded qualified institutional placement (QIP), according to a disclosure.
KIMS concluded the QIP over the weekend, selling shares to institutional investors, including mutual funds, at an issue price of Rs 755 apiece. It raised a total of Rs 1,500 crore ($155.4 million).
IFC has proposed to invest Rs 150 crore in the offering.
According to the disclosure, KIMS will use the proceeds to support its overall operations and growth strategy, including expansion of its hospital network through a combination of greenfield and brownfield acquisitions or expansions. It plans to add about 2,300 beds over the next three years.
The company will also use the proceeds to reduce debt at KIMS and its subsidiaries.
In previous earnings calls, the company had said its debt had peaked at over Rs 3,000 crore and is expected to decline. KIMS plans to fund further greenfield expansion by reducing debt and deploying internal cash flows. These projects are likely to take three to four years to become operational.
During its last earnings call, the company also said it may pursue two small acquisitions over the next two quarters, adding a combined 400-500 beds.
Earlier this year, KIMS approved an increase of up to Rs 100 crore in its investment limit to acquire additional shares in Sarvejana Healthcare Pvt Ltd, which operates as Sunshine Hospital, the company's material subsidiary. KIMS currently holds a 75.53% stake in it.
The transaction, to be executed in one or more tranches from minority shareholders, will be funded through cash consideration. The proposed investment is aimed at enhancing KIMS' shareholding in the Hyderabad-based healthcare provider.
Besides acquisitions, KIMS expanded its footprint in FY26 by opening hospitals in Hyderabad; Guntur, Andhra Pradesh; Thane and Sangli in Maharashtra; Mahadevapura and Electronic City in Bengaluru; and Kollam, Kerala. The company also set up fertility centres in Hyderabad and Guntur.
Published by HT Digital Content Services with permission from VC Circle.