Trending today: Shares of this healthcare company rise upon reporting an acquisition of a Nagpur based company
The acquiree company runs a multi-speciality hospital in the name of 'Kingsway Hospitals'.
The shares of Krishna Institute of Medical Sciences Ltd, an S&P BSE 500 company, are buzzing on the bourses today. As of 12.48 pm, the shares of Krishna Institute of Medical Sciences are trading at Rs 1208.15 apiece, higher by 2.07% over the previous close. Even in the pre-opening session today, the company’s shares witnessed high demand from buyers. Owing to this, the share price of the company was up by nearly 5% in the pre-opening session.
The surge in share price came on the back of an announcement made by the company on Monday, after market hours. As per the exchange filing, the company has entered into a definitive agreement to acquire a majority stake (51%) in SPANV Medisearch Lifesciences Private Limited, Nagpur. The latter runs a multi-speciality hospital in the name of 'Kingsway Hospitals'. Existing promoters and shareholders will continue to hold a balance stake of 49%. Post-acquisition, the hospital will be renamed 'KIMS Kingsway Hospitals'.
The existing hospital premises has the scope to further scale up the bed capacity as and when required in the future with minimal Capex. The top specialties of the acquiree (Kingsway) include Cardiology, Nephrology, Urology, Orthopaedics, Paediatrics, and Oncology. The acquisition will be completed via an infusion of funds into the company to the tune of Rs 80 crore, which will be used to repay the existing debts and partly to strengthen the Balance Sheet.
Owing to an increased demand, the company reported a spurt in trading volume of more than 1.80 times. Today, the scrip opened at Rs 1240, which was also the day’s high. Further, the scrip touched a day’s low of Rs 1207.60. So far 3,498 shares have been traded on the bourses. The stock has a 52-week high and low of Rs 1,532.15 and Rs 1,060.05, respectively on BSE.
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