Krishna Institute of Medical Sciences Limited Enters Operations and Management Agreement with Avitis Super Speciality Hospitals
Krishna Institute of Medical Sciences Limited (KIMS) announced that its wholly-owned subsidiary, KIMS Swastha Private Limited, has entered into definitive agreements with Avitis Super Speciality Hospitals Private Limited. The agreements, effective April 2, 2026, involve the operations and management of a hospital and sub-lease of land and building for a period of 20 years.The agreement includes an Operations and Management Agreement for a 210-bed facility in Palakkad, Kerala, and a Sub-Lease Deed for the land and hospital building. KIMS will have exclusive supervision and control over the hospital’s management and will be responsible for its operations.
Under the terms of the agreement, KIMS will pay a total security deposit of ₹29,75,00,000 for the Operations and Management, with ₹5,00,00,000 retained by AVITIS, and the remainder recovered by KIMS over a specified period. A security deposit of ₹25,00,000 (interest-free and refundable) will be paid for the Sub-Lease of Land. KIMS will also pay AVITIS the higher of a minimum guarantee of ₹22,00,000 per month or 4% of the hospital's total net revenues. This revenue fee includes a sub-lease rent of ₹3,00,000 per month.
KIMS will also benefit from Avitis’s local presence, while Avitis will benefit from KIMS’s expertise in hospital management and operations, strengthening the KIMS brand’s presence in Kerala. KIMS has a call option to acquire a majority share in Avitis, subject to specific terms and conditions.
| Name of Company with whom agreement/ JV is signed | Avitis Super Speciality Hospitals Private Limited ('Avitis Hospital') located in Palakkad , Kerala |
|---|---|
| Area of Agreement | a) Sub-Lease Deed of Land &Building and b) Hospital Operations and Management Agreement. |
| Domestic or International | Domestic |
| Scope of Business Operation of Agreement: | KIMS Swastha Private Limited ('the KIMS'), a wholly owned subsidiary of Krishna Institute of Medical Sciences Limited, has entered into an Operations and Management Agreement dated 2 nd April 2026 for the operation and management of a 210-bedded facility located in Palakkad, Kerala, for a period of 20 years, commencing from 02 nd April 2026. A Sub-Lease Deed in respect of the land and hospital building has also been executed, which shall be coterminous with the Operations and Management Agreement. |
| Whether the acquisition would fall within related party transactions and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at 'arm's length'; | No |
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