KIMS enters SHA to acquire 51% stake in KIMS Manavata Hospitals; stock marginally up

15 Jun 2022 , 09:26 AM

Krishna Institute of Medical Sciences (KIMS) has informed the Board of Directors in their meeting held on May 12, 2022, has approved a ‘definitive agreement’ for the acquisition of a 51% stake in KIMS Manavala Hospitals Private Limited.

The company further entered into Share Holders Agreement (SHA) on June 14, 2022.

KIMS Manavata Hospitals Private Limited has been incorporated recently to construct 325 beds Multispecialty hospital in Nashik.

However, this deal doesn’t fall within related party transaction(s) and the promoter/promoter group/group companies do not have any interest in the said transaction.

The said acquisition will help KIMS Hospitals Group enter Maharashtra by opening its new hospital in Nashik, which will bring the company’s affordable quality care model to Nashik.

KIMS will hold a 51% stake and Dr. Raj Nagarkar and his affiliates will hold a 49% stake in the SPV.

The acquisition is expected to be completed on or before June 30, 2022.

At around 9.32 AM, KIMS’ counter was trading at Rs1,206.40 per piece, up by 0.20% against its previous close of Rs1,204.20 on NSE. It touched intraday high and low of Rs1,218.10 and Rs1201.65 respectively so far.