KIMS Subsidiary Enters 20-Year O&M, Sub-Lease Agreement with Avitis Hospitals
KIMS's subsidiary, KIMS Swastha, signed a 20-year O&M and sub-lease agreement with Avitis Super Speciality Hospitals in Palakkad, Kerala, effective April 2, 2026. KIMS will manage the 210-bedded facility. The deal involves a ₹29.75 crore security deposit for O&M and a ₹25 lakh deposit for the sub-lease. KIMS also has a call option to acquire a majority stake in Avitis.
The agreement involves a significant long-term operational commitment and potential future acquisition, impacting KIMS's operational footprint and strategic direction. The financial commitments are substantial, warranting a medium impact assessment.
The agreement represents a strategic expansion for KIMS, extending its operational reach and brand presence into a new city, which is viewed positively for future growth.
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. These agreements encompass an Operations and Management (O&M) agreement and a sub-lease of land and hospital building, effective from April 2, 2026, for a period of 20 years.
The O&M agreement pertains to a 210-bedded facility located in Palakkad, Kerala. KIMS will have exclusive supervision and control over the hospital's management, ensuring efficient operations and high-quality medical care. This strategic move is expected to strengthen the KIMS brand's presence in a new city in Kerala.
Under the O&M agreement, KIMS will pay Avitis a total security deposit of ₹29.75 crore, with ₹5 crore retained by Avitis and the remainder recovered by KIMS from fees over a specified period. Additionally, KIMS will pay Avitis revenue fees, which will be the higher of a minimum guarantee of ₹22 lakh per month or 4% of the hospital's total net revenues. The sub-lease of land and building will incur a separate interest-free, refundable security deposit of ₹25 lakh.
KIMS also holds a call option, at its discretion, to acquire a majority stake in Avitis, subject to the terms outlined in the transaction documents. This agreement is considered a domestic transaction and does not involve related parties or promoter group interests.
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Krishna Institute of Medical Sciences Limited filed this with the NSE as a statutory disclosure, categorised under strategic partnerships. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Krishna Institute of Medical Sciences Limited. Read the original for the full detail.