Krishna Institute of Medical Sciences Limited (KIMS Hospitals) has announced the acquisition of a 51% equity stake in Sarvottam Health Care Private Limited for an aggregate consideration of up to ₹80.00 crore. This strategic move positions KIMS Hospitals to expand its reach in the Kakinada region, leveraging Sarvottam’s established infrastructure and capacity. The O&M entity’s operations are expected to be integrated seamlessly, enhancing KIMS’s overall service portfolio and market share in advanced medical care.
Strategic Acquisition Bolsters KIMS Hospitals’ Network
Krishna Institute of Medical Sciences Limited (KIMS Hospitals) has officially entered into definitive agreements to acquire a 51% equity stake in Sarvottam Health Care Private Limited, an Operations and Management (O&M) entity based in Kakinada. The total consideration for this strategic acquisition is capped at ₹80.00 crore. This move is a significant step in KIMS Hospitals’ growth strategy, aimed at expanding its presence and service offerings in key regions.
Sarvottam Health Care: A Growing Healthcare Provider
Sarvottam Health Care Private Limited, operating under the brand ‘Trust Multi Speciality Hospital’, commenced operations in 2010. It has since grown its capacity from 50 beds to 183 beds, focusing on delivering quality healthcare services in the Kakinada region. The company has invested in a new, state-of-the-art hospital campus, further strengthening its position as a comprehensive healthcare provider in East Godavari district. For the fiscal year 2025-26, Sarvottam Health Care reported a turnover of ₹84.83 crore and a Profit After Tax (PAT) of ₹7.06 crore, with a net worth of ₹50.30 crore.
Deal Rationale and Financials
The acquisition is considered a strategic investment by KIMS Hospitals, leveraging its role as an O&M service provider and a call option agreement. The acquisition of 51% of the total equity stake is expected to enhance KIMS’s market penetration and operational capabilities. The shares are being acquired based on a valuation report from BDO Valuation Advisory LLP, with the aggregate consideration set at up to ₹79.50 crore. KIMS has acquired 21,72,713 equity shares, representing 51% of the target company’s equity share capital.
Transaction Details
The transaction is structured as a cash consideration. The acquisition is not considered a related party transaction. An Operation and Management (O&M) agreement was also entered into with the target entity on September 10, 2026, with O&M services provided on an arms-length basis. No governmental or regulatory approvals were required for this acquisition, and the indicative time period for completion is not applicable as definitive agreements have been executed and consideration remitted.
The transfer of shares is expected to be completed in due course. This intimation is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: BSE
