KIMS shares surge over 4% after company enters agreement for 100% acquisition
Krishna Institute of Medical Sciences surged 4.4% on NSE after the company announced that it has entered into a definitive agreement for acquiring a 100% stake in Chalasani Hospitals.
“Pursuant to the approval of the Board, we are pleased to inform that the Company has entered into a definitive agreement for acquisition of a 200-bed multi-specialty hospital at a prime location in Vizag,” informed the company via a filing to the stock exchanges.
KIMS already has a multi-speciality hospital and gastro unit at Vizag and this addition is likely to help the company garner a larger share in the market. Besides, the hospital is situated in a prime locality which makes it an attractive proposition.
“This is our 2nd Hospital in Visakhapatnam (KIMS-ICON Hospitals was acquired in 2018). It underscores the tremendous opportunity we see in this city and we’ll continue to look for inorganic opportunities to build on our dominant position in Andhra Pradesh. With the addition of Queen's NRI Hospital, we now have over 630 beds in Vishakapatnam to provide world class healthcare facilities,” said B. Bhaskara Rao, CMD, KIMS Hospitals.
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The company’s filing states that Queen's NRI Hospital is a 200-bed hospital at a prime location in Vizag. It was established in 1995 with a built-up area of around 1,50,000 sq ft.
In the last one year, the shares of KIMS have given returns of 20% while in the last 3 months alone, the stock has surged 7%, as per the Trendlyne data.
