KIMS Board Approves Merger of Two Wholly-Owned Subsidiaries
Filing Summary
The Board of Directors for Krishna Institute of Medical Sciences Ltd has approved a scheme of amalgamation to merge two wholly-owned subsidiaries, KIMS Hospitals Private Limited and Chalasani Hospitals Private Limited, with the parent company. For the fiscal year ending March 31, 2025, Chalasani Hospitals reported a turnover of Rs 744 million, while KIMS Hospitals had zero turnover. The stated rationale includes simplifying the corporate structure and achieving operational efficiencies. As the entities are wholly-owned, no new shares will be issued, and the company’s shareholding pattern will remain unchanged.
The Board of Directors of Krishna Institute of Medical Sciences Limited approved a scheme of amalgamation at its meeting on November 7, 2025. The scheme involves the merger of two wholly-owned subsidiaries, KIMS Hospitals Private Limited (Transferor Company-1) and Chalasani Hospitals Private Limited (Transferor Company-2), with the holding company, Krishna Institute of Medical Sciences Limited (Transferee Company). All entities involved in the transaction are engaged in healthcare activities.
For the financial year ended March 31, 2025, the transferee company, Krishna Institute of Medical Sciences Limited, recorded a turnover of Rs 13,841 million and a profit after tax (PAT) of Rs 3,029 million. During the same period, Chalasani Hospitals Private Limited reported a turnover of Rs 744 million and a loss of Rs 98 million. KIMS Hospitals Private Limited registered a turnover of Rs 0 and a loss of Rs 5 million. The paid-up capital of the parent company is Rs 80,02,77,870, while the paid-up capital for KIMS Hospitals and Chalasani Hospitals is Rs 36,99,44,800 and Rs 5,23,44,870, respectively.
The filing states that no cash consideration will be paid, and no new shares will be issued as part of the amalgamation. This is because the transferor companies are wholly-owned subsidiaries of the transferee company. Consequently, the shareholding pattern of Krishna Institute of Medical Sciences Limited will remain unchanged following the completion of the merger. The transaction is classified as a related party transaction but is exempt from certain regulatory provisions under SEBI regulations for transactions between a holding company and its wholly-owned subsidiaries.
The rationale provided for the amalgamation includes the simplification of the group corporate structure and the elimination of multiple legal entities. The company also cited achieving operational and administrative efficiencies through the pooling of resources and management functions. Additional objectives mentioned in the filing are the optimization of asset utilization, a reduction in statutory compliances, and associated cost savings. The merger is also intended to strengthen the consolidated financial position and enable more focused management through unified decision-making.
Krishna Institute of Medical Sciences Limited is a healthcare provider that operates a chain of multi-specialty hospitals. The company focuses on providing tertiary and quaternary healthcare services across numerous medical disciplines. Its business strategy includes expanding its network in existing and adjacent geographical markets through both organic growth and acquisitions.