Cian Healthcare Subsidiary Dr. Smiths Biotech Ceases Operations

Equity capital of Dr. Smiths Biotech extinguished; No consideration receivable by parent entity.

Reader Takeaway: Removal of a loss-making, non-operational subsidiary cleans up the consolidated balance sheet without cash impact.

What just happened

Cian Healthcare Limited confirmed that its wholly-owned subsidiary, Dr. Smiths Biotech Private Limited, ceased to be part of the company effective October 23, 2026. This follows an order from the National Company Law Tribunal (NCLT), Mumbai Bench, which approved a resolution plan submitted by Ananta Medicare Limited. Under this plan, the entire existing equity share capital of the subsidiary was cancelled, and Cian Healthcare received no consideration for the exit.

Why this matters

Dr. Smiths Biotech was undergoing a Corporate Insolvency Resolution Process (CIRP) since April 2025. By removing this entity, Cian Healthcare eliminates a subsidiary that held a significant negative net worth of Rs 9.87 crore as of FY 2025-26. As the subsidiary generated nil operational revenue, its removal is expected to provide a structural cleanup of the company's consolidated books, relieving the parent of a financial drag without any direct cash outflow.

The backstory

The subsidiary entered insolvency proceedings following a petition filed by the Small Industries Development Bank of India (SIDBI) under the Insolvency and Bankruptcy Code. The Committee of Creditors had previously voted in favor of the resolution plan in December 2025 before the NCLT finalized the outcome.

What changes now

Cian Healthcare is no longer the parent entity of Dr. Smiths Biotech. The transaction is categorized as an NCLT-mandated process rather than a standard commercial sale or disposal. Consequently, the company has clarified that this does not fall under standard arm’s length related party transaction regulations.

Context metrics (FY 2025-26)

Dr. Smiths Biotech contributed Rs 0.01 crore in total income against the parent’s consolidated income of Rs 29.47 crore. The subsidiary’s negative net worth of Rs 9.87 crore stood in contrast to the group's consolidated net worth of Rs 8.54 crore.