Krishna Institute of Medical Sciences has announced a significant expansion into Kerala through its subsidiary's strategic partnership with Avitis Super Speciality Hospitals Private Limited. The comprehensive agreement marks a major step in KIMS' growth strategy, bringing its healthcare expertise to a new market in the southern state.

Agreement Structure and Scope

KIMS Swastha Private Limited, the wholly-owned subsidiary of Krishna Institute of Medical Sciences Limited, has entered into definitive agreements with Avitis Super Speciality Hospitals Private Limited effective from April 2, 2026. The partnership encompasses two key components: hospital operations and management, and sub-lease arrangements for land and building infrastructure.

The super specialty hospital will operate under the exclusive supervision and control of KIMS, which assumes sole responsibility for the facility's proper and efficient management. This arrangement allows KIMS to leverage its established healthcare management expertise while expanding its geographical footprint.

Financial Terms and Considerations

The agreement involves substantial financial commitments structured across multiple components. The security deposit arrangements demonstrate the scale of this partnership, with KIMS making significant upfront investments to secure operational control.

The revenue fee structure provides flexibility while ensuring minimum guaranteed returns for Avitis. KIMS will pay the higher of either a minimum guarantee of ₹22,00,000 per month or 4% of the hospital's total net revenues. This revenue fee includes a sub-lease rent component of ₹3,00,000 per month.

Strategic Benefits and Future Options

The partnership offers mutual benefits for both organizations. Avitis will benefit from KIMS' expert management capabilities, ensuring world-class supervision, operational efficiency, and delivery of high-quality medical care. For KIMS, this agreement strengthens its brand presence in a new city in Kerala, expanding its market reach in the southern healthcare sector.

A notable feature of the agreement includes KIMS' call option to acquire a majority share in Avitis. This option, exercisable solely at KIMS' discretion, provides potential for deeper integration subject to terms and conditions set forth in the transaction documents. The arrangement represents a domestic partnership with no related party transaction implications, as confirmed in the regulatory disclosure.

Regulatory Compliance and Documentation

The agreement has been properly disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive documentation ensures transparency and regulatory compliance, with detailed disclosures provided to both BSE and NSE exchanges. This structured approach demonstrates KIMS' commitment to maintaining high standards of corporate governance while pursuing strategic growth opportunities.

Krishna Institute of Medical Sciences Limited has announced a favorable resolution to an income tax assessment matter involving its subsidiary SPANV Medisearch Lifesciences Private Limited. The development marks the successful conclusion of an appeal process that began earlier in 2024.

Tax Assessment Resolution

SPANV Medisearch Lifesciences Private Limited, a subsidiary of Krishna Institute of Medical Sciences, has received a favorable order from the Income Tax Department regarding its assessment year 2022-2023. The department issued an order under Section 143(3) read with sections 250 and 144B of the Income-tax Act, which has set aside the previously issued demand notice.

Background of the Case

The subsidiary had initially received a demand notice under Section 156 of the IT Act for assessment year 2022-2023 from the Assessment unit of the Income Tax Department. Following this demand notice, the company had filed an appeal against the assessment under Part A of Chapter XX of the Income-tax Act, 1961, to the National Faceless Appeal Centre (NFAC). The original intimation regarding this matter was filed by the company on April 16, 2024.

Financial Impact

The resolution of this tax matter has resulted in zero financial impact on the subsidiary. The Income Tax Department's decision to set aside the demand notice means that no additional tax payment is required from SPANV Medisearch Lifesciences Private Limited for the disputed assessment year.

Regulatory Compliance

The disclosure has been made in accordance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular dated July 13, 2023. Krishna Institute of Medical Sciences received this information from its subsidiary on 31st March, 2026 at 3:43 PM and has promptly disclosed it to the stock exchanges and uploaded the details on the company's investor website.