Krishna Institute of Medical Sciences (KIMS Hospitals) is exploring options to acquire several small hospitals, even as US-based private equity firm General Atlantic is preparing to sell nearly half its 40.91% stake in the Hyderabad-based healthcare services provider.
KIMS Hospitals is preparing for a 700 crore initial public offering (IPO) to give General Atlantic a route to partly exit its investment of three years, as well as raise 200 crore for the company through a fresh issue of shares.
“KIMS is exploring to expand its operations in multiple states wherein it plans to acquire management of smaller hospitals involving no ownership of assets through a revenue-sharing model,” said a person in the know of matter, seeking anonymity.
The management of KIMS Hospitals did not respond to ET’s queries till press time Monday.
KIMS Hospitals, promoted by cardiothoracic surgeon Bhaskara Rao Bollineni, is the largest corporate healthcare group in Telangana and Andhra Pradesh with nine multispecialty hospitals and a total of 3,064 beds.
The firm is actively looking at buyout opportunities in neighbouring states of Karnataka, Tamil Nadu, Odisha as well as Central India, said the person in the know.
“There has been a consolidation of hospital brands in India’s tier-2 and tier-3 cities over the last few years that helped some large hospital brands to form regional clusters,” said the person.
The Covid-19 pandemic and post-pandemic complications have also led to huge demand from patients for high-quality healthcare facilities with multidisciplinary specialisations over the last year or so, he added. Over the last three years, the hospital chain saw its bed capacity increase by nearly a fifth with an occupancy ratio of around 80%.
The company reported a post-tax profit of 115 crore on revenue of 1,129 crore for the year ended March 2020.
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