KIMS Hospitals acquires Vizag's Queen's NRI hospital for Rs 75 crore

HYDERABAD: Krishna Institute of Medical Sciences, more popularly known as KIMS Hospitals, is acquiring 100% stake in 200-bed Queen’s NRI Hospital multi-specialty hospital in Vizag in an all-cash deal of Rs 75 crore.
The acquisition is being made through the purchase of 100% stake in the Chalasani Hospitals Private Limited, which owns Queen’s NRI Hospital.
The Hyderabad-based hospital chain has entered into a share purchase agreement with the erstwhile promoters and shareholders of Chalasani Hospitals Pvt Ltd to purchase the entire stake in the company, it said in a regulatory filing with the bourses.
The acquisition of the hospital, which clocked revenues of nearly Rs 63 crore in financial year 2022-23, is expected to be completed in a month's time, it said.
KIMS Hospitals said the acquisition of the hospital, which is one of the largest in Vizag spread over 1.5 lakh sq ft in a prime and densely populated locality of the `Port City’, will help it garner a larger share of the Vizag market where it already has a multispecialty hospital and gastro unit.
It said the hospital promises good potential for future growth as the nearest hospital is about five and a half km away and health city, known as New Vizag is nearly 17 km away from the hospital.
KIMS Hospitals chairman & managing director B Bhaskara Rao said the acquisition will beef up KIMS hospitals' presence in Vizag to 630 beds. KIMS had marked its entry into the Vizag market with the acquisition of ICON Hospitals in 2018.
“This 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,” Rao added.
KIMS already has a network of 12 hospitals with 3975 beds across Telangana, Andhra Pradesh and Maharashtra offering healthcare services in 40 specialties and super specialties.
While it has hospitals in Secunderabad, Kondapur, Gachibowli and Begumpet in Telangana, it has hospitals in Nellore, Rajahmundry, Srikakulam, Ongole, Vizag, Anantapur and Kurnool in AP and at Nagpur in Maharashtra.