Krishna Institute of Medical Sciences543308Subsidiary merged

Board approves scheme of amalgamation of wholly-owned subsidiary KIMS Hospitals with the company

Board of Krishna Institute of Medical Sciences Ltd approved a scheme of amalgamation of its wholly-owned subsidiary KIMS Hospitals Private Limited into itself.

By ScoutQuest · Wed 4 Nov 2026, 8:44 PM IST · 2 min read

Board Approval Date: 04th November 2026
Consideration / Share Issuance: No cash consideration and no new shares will be issued
Transferor Paid-up Capital: 6,59,99,999 equity shares of Rs. 10/- each, amounting to Rs. 65,99,99,990/-

What was approved

The Board of Directors of Krishna Institute of Medical Sciences Limited, at its meeting held on 04th November 2026, approved a scheme of amalgamation under which its wholly-owned subsidiary KIMS Hospitals Private Limited will merge into the listed company. The approval was on the recommendation of the Audit Committee and is under the Companies Act, 2013 and other applicable laws.

Who is merging into whom

Transferor Company: KIMS Hospitals Private Limited, a wholly-owned subsidiary of the listed company.
Transferee Company: Krishna Institute of Medical Sciences Limited, the listed holding company.
Both entities are engaged in healthcare activities.

No cash, no new shares

The subsidiary is 100% owned by the listed company, so the scheme involves no cash consideration and no issue of new shares. The shareholding pattern of the listed company remains unchanged, which means this merger does not dilute existing shareholders.

The size of the two entities

KIMS Hospitals Private Limited paid-up capital: 6,59,99,999 equity shares of Rs. 10/- each, amounting to Rs. 65,99,99,990/-.
Krishna Institute of Medical Sciences Limited paid-up capital: 42,00,06,484 equity shares of Rs. 2/- each, amounting to Rs. 84,00,12,968/-.
Financials as on 31.03.2026 (Rs. in millions): the listed company's turnover 17,015 and PAT 2,607; KIMS Hospitals Private Limited turnover Nil and PAT (5), printed in brackets.

Why the company says it is doing this

Simplify the group corporate structure and eliminate multiple legal entities.
Achieve operational and administrative efficiencies by pooling resources and management functions.
Optimise utilisation of assets, reduce statutory compliances and save costs.
Strengthen the consolidated financial position and enhance shareholder value.
Enable focused management and unified decision-making.

Related party angle

The transaction is a related party transaction, but under Regulation 23(5)(b) of the SEBI (LODR) Regulations, 2015 it is exempt, because it is between a holding company and its wholly-owned subsidiary.

How a retail investor can read it

This is a group reorganisation rather than a fund-raising or a sale. No money changes hands, no fresh shares are issued, and the listed entity's shareholding pattern stays the same. The subsidiary being merged shows turnover of Nil and PAT of (5) in Rs. millions for the year ended 31.03.2026, while the listed company shows turnover of 17,015 and PAT of 2,607 in the same unit. The benefit the company points to is administrative, compliance and cost efficiency, plus a simpler structure with one less legal entity. The announcement records the Board's approval of the scheme.

What to watch

The scheme's progress and the steps under the Companies Act, 2013 that follow the board approval.
The stated benefits of lower compliance and cost savings, which the company expects from pooling resources and management functions.

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