KIMS acquires Visakhapatnam Hospital in ₹75 Crore deal

10 Jul 2024 , 03:29 PM

On Wednesday, July 10, Krishna Institute of Medical Sciences (KIMS) announced the acquisition of Queen’s NRI Hospital, a multi-specialty hospital in Visakhapatnam, Andhra Pradesh, for ₹75 Crore. Shares of the firm increased by 4%.

Krishna Institute of Medical Sciences Ltd (KIMS) said in a filing to the stock exchanges that it has engaged into a share purchase agreement to acquire a 100% equity stake in Chalasani Hospitals Pvt Ltd, which runs Visakhapatnam’s Queens NRI Hospital.

KIMS would invest up to ₹75 Crore to purchase 100% interest in QNRI Hospital, according to a filing.

Queen’s NRI Hospital is a 200-bed multispecialty hospital located in Visakhapatnam. The QNRI hospital, which opened in 1995, is in a highly populated area, and the nearest hospital is approximately five and a half km distant. The health city of New Visakhapatnam is around 17 kilometres away from the area.

QNRI is one of Visakhapatnam’s top hospitals for cardiology and comprehensive oncology.

The acquisition will benefit KIMS’ operations because it already has a multi-specialty hospital and gastro unit in Visakhapatnam, and the additional facility will help it get a larger market share, the firm said.

The acquisition of QNRI Hospital would expand KIMS’s overall bed capacity to 630 beds in Visakhapatnam. This is KIMS’ second acquisition in the city, following the purchase of KIMS-ICON Hospitals in 2018.

The company stated that it will continue to pursue inorganic prospects to strengthen its position in Andhra Pradesh.

Dr B Bhaskara Rao founded KIMS Hospitals, which is situated in Hyderabad and is one of India’s leading healthcare companies. It offers multidisciplinary healthcare services, with a focus on tertiary and quaternary care, at a reasonable cost.

At around 3.16 PM, KIMS was trading 3.27% higher at ₹2,170.55 per piece, against the previous close of ₹2,101.90 on NSE. The counter touched an intraday high and low of ₹2,193.90, and ₹2,120, respectively.