On Wednesday, July 10, the announcement that Krishna Institute of Medical Sciences (KIMS) would be purchasing Queen’s NRI Hospital, a multispecialty hospital in Visakhapatnam, Andhra Pradesh, for ₹75 crore, resulted in a notable spike in the company’s shares, rising as much as 4%. The goal of this strategic acquisition is to increase KIMS’s market share and operational capability in the area.of a stock exchange filing, Krishna Institute of Medical Sciences Ltd. (KIMS) said that it has signed a share purchase agreement to buy all of the shares of Chalasani Hospitals Pvt Ltd., the business that runs Queen’s NRI Hospital. With a potential expenditure of up to ₹75 crore, the acquisition demonstrates KIMS’s dedication to growing its presence in Andhra Pradesh.
Established in 1995, Queen’s NRI Hospital is a 200-bed multispecialty hospital located in a highly crowded neighborhood of Visakhapatnam. Given that the closest hospital is roughly 5.5 km away and the health city of New Visakhapatnam is about 17 km away, its advantageous position is quite advantageous. Because of this, Queen’s NRI Hospital—which is renowned for its superior cardiology and extensive oncology services—becomes an indispensable healthcare provider in the area.
The activities of KIMS in Visakhapatnam are expected to be greatly enhanced by the acquisition of Queen’s NRI Hospital. KIMS hopes to fortify its position in the area and grow its market share by merging this multispecialty hospital with its gastro unit. With this acquisition, KIMS will have 630 beds overall in Visakhapatnam, its second in the city after acquiring KIMS-ICON Hospitals in 2018.
The purchase is in line with KIMS’s plan to strengthen its dominant position in Andhra Pradesh and beyond by exploring inorganic development possibilities. The management of KIMS has stated that they will keep looking into chances like these to improve their service portfolio and market presence.
One of the biggest hospital groups in India, KIMS Hospitals was founded by Dr. B. Bhaskara Rao and has its headquarters in Hyderabad. The company is well known for delivering multidisciplinary medical services, with a focus on reasonably priced tertiary and quaternary care. 3,975 beds in 12 hospitals spread over Telangana, Andhra Pradesh, and Maharashtra are managed by KIMS.
KIMS’s share price finished 3% higher on Wednesday at ₹2,165 a share after the acquisition was announced. On Tuesday, it had closed at ₹2,101.90. Investor trust in KIMS’ growth plan and its capacity to increase value through selective acquisitions is emphasized by this favorable market reaction.
A major accomplishment for KIMS, the purchase of Queen’s NRI Hospital enhances its standing as the area’s top healthcare provider. It is anticipated that the increased capacity and improved service offerings would draw in more patients and boost Visakhapatnam’s overall healthcare system. Furthermore, this action is in line with KIMS’ long-term goal of reaching a wider geographic area and offering top-notch healthcare services.
The strategic investment made by KIMS in Queen’s NRI Hospital is intended to broaden its healthcare network and improve its service capabilities in Visakhapatnam. This acquisition strengthens KIMS’s commitment to offering comprehensive and specialized healthcare services to the communities it serves, in addition to increasing the number of beds available for use. The enthusiastic response from the market to this news indicates that people are confident in KIMS’s growth trajectory and its capacity to successfully integrate and capitalize on additional acquisitions in order to achieve long-term success.
SOURCE:
MINT
