More Details on This News

Krishna Institute of Medical Sciences Limited (KIMS) has initiated a postal ballot process to seek shareholder approval for a material related party transaction. The company proposes to provide loans amounting up to ₹150 Crore to its subsidiary, KIMS Hospital Bengaluru Private Limited (KHBPL). This financial assistance is intended to support KHBPL's working capital requirements and capital expenditure needs as it scales its operations in Bengaluru.

The loan will be extended in tranches until the next Annual General Meeting in FY 2026-27. The proposed transaction includes a one-year moratorium on interest and principal, followed by a five-year repayment period. The interest rate for the loan is set at 12%, approximately 400 basis points above KIMS's average return on investments, ensuring a commercially favorable return and supporting the strategic expansion in the Bengaluru healthcare market.

The postal ballot notice, dispatched on January 2, 2026, allows members to vote electronically. The remote e-voting period commences on January 3, 2026, at 9:00 AM and concludes on February 1, 2026, at 5:00 PM. The results of the postal ballot will be announced on or before February 3, 2026. The Audit Committee, comprising independent directors, reviewed the transaction and found it to be in the ordinary course of business and on arm's length terms.