Krishna Institute of Medical Sciences Limited — Important, 20-02-2025: General Updates

Krishna Institute of Medical Sciences (KIMS) has entered into a seven-year Operations and Management Agreement with Splendid Hospitals Private Limited to oversee and manage its new 150-bed hospital in Hyderabad. This agreement, with a potential three-year extension, aims to ensure efficient hospital operations and high-quality medical services. KIMS will receive a revenue fee of 9% of the total Net Revenue generated by the hospital.

The Splendid Hospital is set to open in June 2025 and has the capacity for future expansion to over 200 beds, catering to growing healthcare demands in the region. This partnership enhances KIMS' footprint in Hyderabad, presenting significant growth opportunities. Importantly, KIMS retains the first right of refusal for any equity transfers in Splendid and an option to acquire up to 100% equity, further solidifying its strategic control in the partnership. Positive implications for investors stem from KIMS' commitment to operational excellence and expansion in a high-potential market.