KIMS Approves Merger of Two Wholly-Owned Subsidiaries to Streamline Structure

Hyderabad, November 7, 2025: Krishna Institute of Medical Sciences Ltd (NSE: KIMS | BSE: 543308), through its Board of Directors, has announced the merger of its two wholly-owned subsidiaries, namely KIMS Hospitals Private Limited and Chalasani Hospitals Private Limited, with the parent company. The merger is to streamline the corporate setup, remove unnecessary legal entities, and improve operational efficiencies within the group.

Krishna Institute of Medical Sciences Ltd (KIMS) is a group of multi-specialty hospitals with offices in Telangana and Andhra Pradesh that provide tertiary and quaternary health care services. The shares of the company are traded at the NSE and BSE with the symbol KIMS.

Key Details Of The Merger

As per the company filing dated November 7, 2025, KIMS Hospitals Pvt Ltd, Chalasani Hospitals Pvt Ltd, and Krishna Institute of Medical Sciences Ltd are set to merge. The transferor companies reported weak performance in FY25, with limited operations and losses, while the transferee, KIMS Ltd, posted strong results with a turnover of ₹13,841 million and a profit of ₹3,029 million. The merger is expected to consolidate operations and enhance overall efficiency.

Rationale Behind The Merger

The company stated that the merger will streamline the group’s corporate structure and reduce overhead costs. It aims to consolidate management resources to achieve greater operational synergy, maximize asset utilization, and lower statutory compliance expenses. The merger will strengthen the group’s overall financial position and enhance shareholder value, while enabling centralized control and decision-making across all hospital networks. As both entities are wholly owned subsidiaries, no cash consideration or share issuance will be involved. Post-merger, the shareholding pattern of KIMS Ltd. will remain unchanged.

As of November 7, 2025, the share price of Krishna Institute of Medical Sciences Ltd closed at ₹725.10, up 0.67% from the previous close of ₹720.30. The stock opened at ₹722 and fluctuated between a high of ₹733.45 and a low of ₹708 during the trading session.

REF: https://nsearchives.nseindia.com/corporate/KIMS_07112025152246_Disclosure_to_SE.pdf

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