Krishna Institute of Medical Sciences Limited has announced the successful completion of its postal ballot process, with shareholders overwhelmingly approving a material related party transaction with its subsidiary company. The voting concluded on February 01, 2026, marking a significant milestone in the company's corporate governance processes.

Voting Results and Participation

The postal ballot witnessed strong shareholder participation, with detailed voting statistics reflecting broad-based support for the proposed resolution.

Resolution Details and Approval

The single ordinary resolution on the agenda concerned the approval of a material related party transaction with KIMS Hospital Bengaluru Private Limited, a subsidiary company. The voting results demonstrated overwhelming shareholder support across all categories.

Voting Breakdown by Category

Scrutinizer's Oversight and Process

Krishna Rao Inturi, Proprietor of IKR & Associates and Practicing Company Secretary, served as the appointed scrutinizer for the postal ballot process. The scrutinizer was appointed by the board of directors through a resolution passed on December 29, 2025, ensuring independent oversight of the voting process.

The e-voting facility was provided by MUFG Intime India Private Limited, with the platform remaining accessible from January 03, 2026, 09:00 AM to February 01, 2026, 05:00 PM. The votes were unblocked on February 02, 2026, in the presence of two independent witnesses who were not employed by the company.

Regulatory Compliance and Documentation

The postal ballot process was conducted in strict accordance with:

• Sections 108 and 110 of the Companies Act, 2013
• Rules 20 and 22 of the Companies (Management and Administration) Rules, 2014
• Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The voting results and scrutinizer's report have been disclosed to both BSE and NSE, with the company maintaining transparency through uploads on its website www.kimshospitals.com and the e-voting platform. The resolution is deemed to have been passed on February 01, 2026, the last date of e-voting, with the requisite majority achieved as confirmed by the scrutinizer's report dated February 03, 2026.

Krishna Institute of Medical Sciences Limited has announced a postal ballot seeking shareholder approval for a material related party transaction involving loans up to ₹150.00 crores to its subsidiary KIMS Hospital Bengaluru Private Limited (KHBPL). The company issued the notice on January 2, 2026, with the voting period scheduled from January 3, 2026, to February 1, 2026.

Postal Ballot Timeline and Process

The company has established a comprehensive timeline for the postal ballot process, with all voting conducted through electronic means only.

Transaction Details and Financial Structure

The proposed transaction involves extending loans to KHBPL, an unlisted subsidiary where Krishna Institute of Medical Sciences holds 80.00% of the paid-up equity shares. The loan structure includes a 12% interest rate, representing approximately 400 basis points above the company's average return on investments.

Historical Transaction Analysis

The company has provided detailed information about previous transactions with KHBPL, demonstrating the ongoing financial support for the subsidiary's operations.

Previous Financial Year (FY 2024-25)

Current Financial Year (FY 2025-26, up to Q2)

Strategic Rationale and Business Impact

The proposed loan aims to support KHBPL's operational scaling in the Bengaluru healthcare market. KHBPL, being a recently operational subsidiary, requires funding for working capital and additional capital expenditure needs. The subsidiary reported a turnover of nil and a net loss of ₹8.70 crores in the previous financial year, with a net worth of ₹71.50 crores.

The transaction represents 4.94% of the company's annual consolidated turnover of ₹3,035.00 crores for FY 2024-25. The Audit Committee, comprising entirely of Independent Directors, approved the transaction on December 29, 2025, confirming it as an arm's length transaction in the ordinary course of business.

Regulatory Compliance and Approval Process

The transaction requires shareholder approval as it constitutes a material related party transaction under Regulation 23 of SEBI Listing Regulations. The company has appointed Mr. Krishna Rao Inturi of IKR & Associates as the Scrutinizer for conducting the postal ballot process. MUFG Intime India Private Limited will provide the e-voting platform for shareholders.

The funding will be sourced partly from internal accruals and partly from borrowings, with the company's current borrowing rate at approximately 8.15%. The proposed 12% lending rate provides a favorable margin for the company while supporting the subsidiary's growth requirements in the competitive Bengaluru healthcare market.