Krishna Institute of Medical Sciences Limited has informed the Exchange regarding Notice of Postal Ballot
KIMS · price
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Krishna Institute of Medical Sciences Limited (KIMS) has sent a postal ballot notice to shareholders seeking approval to lend up to Rs. 150 crore to its 80%-owned subsidiary KIMS Hospital Bengaluru Private Limited (KHBPL). KHBPL is a newly operational hospital business in Bengaluru that needs funds for working capital and capex. KIMS will charge 12% interest on the loan (around 400 bps above its own average return on investments), while its own borrowing cost is about 8.15%. The loan is unsecured with a 1-year moratorium on interest and principal, followed by 5 years of repayment. The transaction size is about 4.94% of KIMS's FY25 consolidated turnover of Rs. 3,035 crore. Voting opens on January 3, 2026 and closes on February 1, 2026, with results expected by February 3, 2026.
This is an internal funding arrangement to support the company's Bengaluru expansion and is expected to generate a healthy spread for KIMS. Since it is a related-party transaction with a subsidiary, shareholders should note the deployment of capital into a loss-making, early-stage subsidiary (KHBPL reported a loss of Rs. 8.7 crore). Approval is being sought via ordinary resolution; voting outcome on or before February 3, 2026 will be the key milestone to watch.