KOCHI: Thiruvananthapuram-based KimsHealth is preparing for a public listing subsequent to its recent acquisition by Hyderabad's leading healthcare entity, Quality Care India Ltd (QCIL). Sources closely associated with the healthcare provider have confirmed that QCIL invested USD 400 million to acquire an 80% stake in KimsHealth. An insider disclosed, "The IPO is expected to occur after the upcoming general elections."
QCIL, recognized for its network of Care Hospitals spanning seven Indian states, excluding Kerala, was itself acquired by US private equity firm Blackstone, securing a 72.5% stake in QCIL.
Prior to the acquisition, Kims operated four hospitals in Kerala with approximately 1,400 beds. QCIL successfully managed 13 multi-speciality hospitals under the Care Hospitals banner, establishing a robust presence across various Indian regions, excluding Kerala. The acquisition valued KimsHealth at approximately Rs 3,300 crore.
In response to the acquisition, KimsHealth's advisory board will undergo a reconstitution. "While three existing board members will remain, five new members will join the board post-acquisition," an official disclosed. Dr M I Sahadulla, the founder and promoter of KimsHealth, will retain a 20% stake and continue to lead the organisation.
However, with the majority stake no longer under Dr Sahadulla's control, the management's authority will be somewhat curtailed. "Kims, holding only a 20% stake, will have limited control over the hospital's management. Nonetheless, Kims may retain certain management powers through affirmative rights outlined in the agreement. Nevertheless, there will be some degree of relinquished control," the official clarified.
The acquisition is expected to benefit both the management and stakeholders. "This strategic move allows minority shareholders to divest their shares. In scenarios where minority shareholders opt to sell their shares, KimsHealth may encounter financial constraints in repurchasing them. Therefore, this acquisition is advantageous for both the management and the shareholders," the official added.