Krishna Institute of Medical Sciences Limited has approved the amalgamation of its wholly-owned subsidiary, KIMS Hospitals Private Limited, with itself. This strategic move, approved by the Board of Directors on November 4, 2026, aims to simplify the group’s corporate structure, enhance operational efficiencies, and reduce statutory compliances. The merger is expected to strengthen the consolidated financial position and shareholder value, with no cash consideration involved.
Krishna Institute of Medical Sciences Approves Amalgamation
Krishna Institute of Medical Sciences Limited announced on November 4, 2026, that its Board of Directors has approved a scheme of amalgamation. The merger will involve its wholly-owned subsidiary, KIMS Hospitals Private Limited (Transferor Company), with the holding company, Krishna Institute of Medical Sciences Limited (Transferee Company). This decision aligns with the provisions of the Companies Act, 2013, and other applicable laws.
Strategic Rationale for Merger
The primary objectives behind this amalgamation include the simplification of the group’s corporate structure and the elimination of multiple legal entities. It is anticipated to lead to achieving operational and administrative efficiencies by pooling resources and management functions. Furthermore, the merger aims to optimize asset utilization, reduce statutory compliances, and achieve cost savings. The company also expects to strengthen its consolidated financial position and enhance shareholder value through unified decision-making.
Transaction Details
KIMS Hospitals Private Limited, the transferor company, is a wholly-owned subsidiary with an issued share capital of 6,59,99,999 Equity Shares of ₹10 each, totaling ₹65,99,99,990. The transferee company, Krishna Institute of Medical Sciences Limited, has a paid-up capital of 42,00,06,484 Equity Shares of ₹2 each, amounting to ₹84,00,12,968. Turnover for KIMS Hospitals Private Limited was Nil as of 31.03.2026, while its PAT was (₹5) million. Krishna Institute of Medical Sciences Limited reported a turnover of ₹17,015 million and a PAT of ₹2,607 million as of the same date. The transaction is considered a related party transaction but is exempted under Regulation 23(5)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Crucially, there will be no cash consideration or issue of new shares involved in this scheme of amalgamation, as the transferor company is wholly owned by the transferee company. Consequently, the shareholding pattern of the Transferee Company remains unchanged.
Source: BSE
