KIMS to Acquire 22% Stake in Splendid Hospitals for Rs 40 Crore

Transaction Value: Up to Rs 40 Crore | Target Stake: Up to 22% Equity

Reader Takeaway: KIMS deepens its strategic presence in the Kompally healthcare market through a direct equity infusion.

What just happened

Krishna Institute of Medical Sciences Ltd (KIMS) has received board approval to acquire up to 22% of the equity shares of Splendid Hospitals Private Limited, located in Kompally. This acquisition will be executed via a primary infusion for a total cash consideration of up to Rs 40 crore. The valuation for this transaction is supported by a report from BDO Valuation Advisory LLP dated October 5, 2026. The parties anticipate completing the deal on or before March 31, 2027.

Why this matters

KIMS currently serves as the Operations & Management (O&M) partner for the target entity. This acquisition represents a shift from a service provider role to an equity partner. The move is designed to solidify KIMS's control and operational influence over the asset, which is strategically positioned to scale up to 225 beds. By moving into an equity position, KIMS ensures long-term alignment with the hospital's growth potential.

Target Entity Profile

Splendid Hospitals Private Limited is a relatively new player, incorporated in September 2022. It is currently equipped with modern diagnostic infrastructure and operation theatres. For the fiscal year 2025-26, the company reported a turnover of Rs 1.39 crore and a net loss of Rs 8.92 crore, with a net worth of Rs 38.69 crore.

Governance and Compliance

The board has confirmed that this transaction does not fall under the category of a related party transaction. The company also stated that no specific government or regulatory approvals are required to finalize the acquisition.

What to track next

Investors should monitor the integration progress and the transition of Splendid Hospitals toward achieving its full bed-capacity potential. The financial turnaround of the target entity will also be a key performance indicator as KIMS begins its equity-linked involvement.