Krishna Institute of Medical Sciences Limited has approved the acquisition of up to 22% equity stake in Splendid Hospitals Private Limited (Kompally) for an aggregate consideration of up to ₹40 crore. The investment will be made through primary infusion, marking a strategic move by the hospital operator to deepen its presence in the Hyderabad healthcare market.

The board decision was taken at a meeting held on October 6, 2026. KIMS currently serves as the Operations and Maintenance (O&M) partner for the target entity. The company stated that the acquisition is intended as a strategic investment to leverage the existing operational relationship.

Target Entity Financials

Splendid Hospitals Private Limited, incorporated in September 2022, operates a facility in Kompally, Telangana. The hospital is equipped with modern medical infrastructure and has the potential to expand its capacity to over 225 beds. Despite the expansion potential, the entity remains in the early stages of revenue generation and profitability.

Note: FY26 figures represent the fiscal year ending March 2026.

Deal Structure and Terms

The acquisition involves the purchase of equity shares with a face value of ₹10 each. The price is determined based on a valuation report issued by BDO Valuation Advisory LLP on October 5, 2026. Key terms of the transaction include:

• Consideration: Cash payment up to ₹40 crore.
• Stake Acquired: Up to 22% equity shareholding.
• Method: Primary infusion into the target entity.
• Completion Timeline: On or before March 31, 2027.
• Regulatory Status: No governmental or regulatory approvals are required for this specific transaction.

What the Numbers Show

A divergence exists between the target's asset base and its income statement performance. While Splendid Hospitals reports a net worth of ₹38.69 crore, it recorded a net loss of ₹8.92 crore in FY26 against a turnover of just ₹1.39 crore. This indicates that the valuation is likely driven by the underlying real estate assets and infrastructure potential rather than current cash flows. The rapid increase in turnover from ₹0.30 crore in FY25 to ₹1.39 crore in FY26 suggests the hospital is in a ramp-up phase, yet the significant operating losses highlight the capital-intensive nature of scaling operations in the healthcare sector.

Krishna Institute of Medical Sciences Ltd promoters Bhaskara Rao Bollineni and Bollineni Seenaiah Naidu have pledged 2,80,08,979 equity shares, representing 6.66% of the company's total share capital. The pledge was executed in favour of Catalyst Trusteeship Limited, acting as the Debenture Trustee for debenture holders.

The transaction was disclosed pursuant to Regulation 29(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The date of acquisition of the encumbrance was recorded as September 18, 2026. Catalyst Trusteeship Limited filed the disclosure with both the National Stock Exchange of India and BSE Limited on September 22, 2026.

Pledge Details and Shareholding

The pledged shares constitute a significant portion of the promoter group's holding, serving as security for debentures issued by the company. The acquirer in this context is the Debenture Trustee, which does not belong to the Promoter or Promoter group category but holds the shares in a fiduciary capacity.

Regulatory Compliance

The disclosure confirms that prior to this acquisition, the acquirer held no voting rights or encumbered shares in the target company. Following the pledge, the total holding of the acquirer along with Persons Acting in Concert remains at 2,80,08,979 shares, all classified under encumbrance. The mode of acquisition is explicitly stated as a pledge of equity shares rather than a transfer of ownership or voting rights.

The total diluted share/voting capital of the company remains unchanged at ₹84,00,12,968, comprising 42,00,06,484 equity shares with a face value of ₹2 each. This indicates that the pledge does not alter the capital structure of the company, only the ownership status of specific promoter-held shares until the debt obligation is met.