250-Bed Hospital Expansion: This Healthcare Stock Signs 5-Year O&M Agreement With Arete Hospitals; Share Price Trades at Rs 790
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KIMS will exclusively manage and operate Arete Hospitals in Gachibowli, Hyderabad, under an initial five-year agreement with an option for a further five-year extension.
✨ Key Takeaways
On Thursday, Indian equity benchmark indices traded higher, with the Nifty 50 rising 153.55 points, or 0.64 per cent, to 24,231.85. Amid the market movement, Krishna Institute of Medical Sciences shares were trading at Rs 790.00, up Rs 1.35 or 0.17 per cent. The share price movement came after the company announced that it has entered into an Operations and Management Agreement and Call Option Agreement with Aurevia Hospitals Private Limited, formerly known as Golden Lan Solution Private Limited. The agreement was entered into on August 20, 2026.
KIMS to Operate 250-Bed Arete Hospital
Under the agreement, KIMS will exclusively run, manage, operate, direct and control Arete Hospitals in Gachibowli, Hyderabad. Aurevia Hospitals acquired the hospital business through a Business Transfer Agreement dated July 3, 2026. The hospital is a multispecialty healthcare facility located in Hyderabad's Cyberabad software and IT hub and provides primary, secondary and tertiary care across various medical and surgical specialties.
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Download Service BrochureArete Hospitals currently has an operational capacity of approximately 250 beds. Under the O&M agreement, KIMS will be responsible for the hospital's operations and will provide or facilitate medical services in accordance with the agreement.
KIMS to Receive 9 per cent of Hospital Net Revenue
As consideration for providing medical services and managing the hospital, KIMS will receive a revenue fee equivalent to 9 per cent of the hospital's total net revenue. The filing defines net revenue as gross revenue billed to patients after deducting concessions and discounts offered to patients.
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The O&M agreement has an initial term of five years, with an extension for another five years on an exclusive basis, subject to the terms and conditions of the agreement.
KIMS Entered Call Option to Acquire Hospital Business
Alongside the O&M agreement, KIMS has entered into a Call Option Agreement with Aurevia Hospitals. The agreement gives KIMS the option, but not the obligation, to acquire the business if it is found suitable. Any such acquisition would be subject to definitive terms and conditions, including the price agreed under the relevant documents.
Expansion of Presence in Hyderabad
According to the company, the arrangement is expected to strengthen KIMS' presence in Hyderabad, Telangana, which it identifies as a market with significant growth potential. The agreement also allows Aurevia Hospitals to benefit from KIMS' healthcare management expertise, operational capabilities and medical services.
The company has also confirmed that the transaction is domestic and does not constitute a related-party transaction. The filing states that the promoters, promoter group and group companies have no interest in the entity involved in the agreement.
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Disclaimer: The article is for informational purposes only and not investment advice.