Indian hospital chain Krishna Institute of Medical Sciences (KIMS Hospitals) has entered into a definitive agreement to acquire a 200-bed multi-speciality hospital, Queen's NRI Hospital (QNRI), in Visakhapatnam or Vizag.
The acquisition is facilitated through the purchase of a 100% controlling stake in Chalasani Hospitals, the entity owning QNRI.
It has an estimated value of approximately Rs750m ($8.9m) in cash.
The transaction, which is subject to approval by the KIMS Hospitals board, is anticipated to be completed within one month.
Established in 1995, QNRI is situated in a prime location in central Visakhapatnam, with a built-up area of approximately 150,000ft².
Its strategic location and potential make it a valuable addition to the KIMS Hospitals network.
QNRI's proximity to other medical facilities is notable, with the nearest hospital approximately 5.5km away and the health city, New Visakhapatnam, around 17km distant.
According to KIMS regulatory filing dated 9 July, QNRI's total paid-up equity share capital stands at Rs52.3m, with a turnover of Rs626m for the financial year ending 31 March 2023.
KIMS Hospitals, with its existing presence in Visakhapatnam through a multi-speciality hospital and gastro unit, expects this acquisition to strengthen its market share.
KIMS Hospitals CMD Dr B Bhaskara Rao said: “This is our second hospital in Vishakapatnam (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 Queens’s NRI Hospital, we now have over 630 beds in Vishakapatnam to provide world-class healthcare facilities.”
Rao established the KIMS Hospitals group as a provider of integrated healthcare services, focusing on tertiary and quaternary care at affordable costs.
With a network spanning 12 hospitals and 3,975 beds across Telangana, Andhra Pradesh, and Maharashtra, KIMS Hospitals offers a wide range of healthcare services across more than 40 specialities and super specialities.
