Krishna Institute of Medical Sciences Limited (KIMS) has entered into two significant agreements with Aurevia Hospitals Private Limited (formerly known as Golden Lan Solution Private Limited) on 20th August, 2026.
Operations and Management Agreement
KIMS has entered into an Operations and Management Agreement (O&M Agreement) with Aurevia Hospitals Private Limited (AHPL) for an initial term of 5 years with an extension option for a further period of 5 years on an exclusive basis. Under this agreement, KIMS will run, manage, operate, direct, and control Arete Hospitals, which AHPL acquired through a Business Transfer Agreement dated 3rd July, 2026.
Arete Hospitals is a multispecialty hospital located in Gachibowli, Hyderabad, in the heart of Cyberabad's software and IT hub. The hospital provides primary, secondary, and tertiary care across diverse medical and surgical specialties with an operational capacity of approximately 250 beds.
Financial Consideration
In consideration for the medical services, KIMS is entitled to receive a revenue fee of 9% of the total Net Revenue of the hospital. Net Revenue is defined as gross revenue billed to the patient minus any concessions and discounts offered to the patient.
Call Option Agreement
KIMS has also entered into a Call Option Agreement with AHPL, which gives KIMS the option (but not the obligation) to acquire the business if found suitable. The acquisition would be subject to terms and conditions and at a price as set out in definitive documents to be determined in the future.
Significant Terms and Conditions
The hospital will be under the exclusive supervision and control of KIMS, who will be solely responsible for its proper operation and management.
Transaction Details
The transaction is domestic and does not constitute a related party transaction. Promoters/promoter group/group companies do not have any interest in the entity being acquired. The transaction is being conducted at arm's length.
Rationale and Expected Benefits
The agreement allows AHPL to benefit from KIMS' expert management, ensuring world-class supervision, operational efficiency, and top-tier medical care. For KIMS, this agreement enhances its presence in Hyderabad, Telangana, which has significant growth potential. The call option agreement provides KIMS with future acquisition flexibility.
Additional Information
The same information has been uploaded on the Company's website at: https://www.kimshospitals.com/investors/ under Disclosures under Regulation 62 of the SEBI (LODR) Regulations, 2015 > Intimations filed by the Company > Intimations under Regulation 30.