Krishna Institute of Medical Sciences (KIMS) has announced the approval of the merger between its wholly-owned subsidiaries, KIMS Hospitals Private Limited and Chalasani Hospitals Private Limited. The merger aims to streamline the group structure and enhance operational efficiencies. The decision was made by the Board of Directors on November 7, 2025. The merger intends to optimize asset utilization and reduce compliance costs.
Merger of Subsidiaries
The Board of Directors of Krishna Institute of Medical Sciences Limited (KIMS) approved a scheme for the amalgamation of its wholly-owned subsidiaries: KIMS Hospitals Private Limited and Chalasani Hospitals Private Limited. KIMS will be the transferee company.
Rationale for the Merger
The primary reasons for this merger include:
- Simplification of the group corporate structure.
- Eliminating multiple legal entities.
- Achieving greater operational and administrative efficiencies.
- Pooling of resources and management functions.
- Optimizing utilization of assets.
- Reducing statutory compliances and costs.
Details of Entities Involved
KIMS Hospitals Private Limited: A wholly-owned subsidiary of KIMS with a paid-up capital of ₹36,99,44,800. Turnover as of March 31, 2025 was ₹0, with a PAT of (₹5.45) million.
Chalasani Hospitals Private Limited: A wholly-owned subsidiary of KIMS with a paid-up capital of ₹5,23,44,870. Turnover as of March 31, 2025 was ₹744 million, with a PAT of (₹98) million.
Krishna Institute of Medical Sciences Limited: The holding company. Turnover as of March 31, 2025 was ₹13841 million, with a PAT of ₹3029 million.
No Change in Shareholding
There will be no changes to the shareholding pattern of Krishna Institute of Medical Sciences Limited as a result of this merger.
Source: BSE
