Krishna Institute of Medical Sciences (NSE: KIMS) today announced that it has entered into a definitive agreement to acquire a majority stake (51%) in M/s SPANV Medisearch Lifesciences Private Limited, Nagpur, which is running a Multi-Speciality Hospital in the name of "Kingsway Hospitals", having over 300+ beds. Existing promoters and shareholders will continue to hold a balance 49% stake. Postacquisition, the hospital will be renamed "KIMS Kingsway Hospitals".
The existing hospital premises has the scope to further scale up the bed capacity as and when required in the future with minimal Capex.
"Kingsway Hospitals" is one of the leading multi-specialty hospitals in Nagpur. It was started in the year 2019 by Sancheti family along with a few top practicing doctors at Nagpur. It has quickly emerged as the hospital of choice for the citizens of Nagpur and surrounding areas. The top specialties of Kingsway include Cardiology, Nephrology, Urology, Orthopaedics, Paediatrics, and Oncology.
The acquisition will be completed by way of infusion of funds into the company to the extent of Rs. 80 Cr., which will be used to repay the existing debts and partly to strengthen the Balance Sheet. Our vast experience in running multi-specialty hospitals and turning them around will help present acquisition to quickly reach an optimum level of operational efficiency and add value to our shareholders.
The acquisition again demonstrates the commitment and capability of the KIMS group to identify the potential acquisition in identified markets with the Doctor partnership model and work successfully with a diverse set of clinical/administrative talents.
The acquisition is the second of its kind in our committed & well-articulated strategy to establish our presence in the state of Maharashtra through strong alliances with local management and doctors. Dr. Bhaskara Rao, MD, KIMS Hospitals said "The acquisition in Nagpur reinforces our vision to provide affordable quality care to all. The clinical and management team of Kingsway Hospitals echoes our value system and is equally passionate about providing the best clinical outcomes to patients. It also reiterates our commitment to expand in Maharashtra and this will be our second hospital in Maharashtra, the first being Nashik.
Dr. Prakash Khetan, Managing Director of Kingsway Hospitals said "At Kingsway, our focus has always been to put patients first. We have found an equally committed partner in KIMS Hospitals who shares our passion. I am sure that we will now be able to offer the same world-class clinical experience of KIMS right herein Nagpur to our patients with this partnership."