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The board of Krishna Institute of Medical Sciences Limited (KIMS) has approved a preferential issue of 77.02 lakh warrants

ICICIdirect Research 15 Jun 2026 DISCLAIMER

News: The board of Krishna Institute of Medical Sciences Limited (KIMS) has approved a preferential issue of 77.02 lakh warrants to promoter and promoter-group entities, raising nearly ₹600 crore. The warrants will be issued at ₹779 apiece and are convertible into an equivalent number of equity shares within 18 months. Promoters Dr. Abhinay Bollineni and Adwik Bollineni will each receive 32.09 lakh warrants, while Bharas Ventures LLP will be allotted 12.84 lakh warrants. Following full conversion, promoter and promoter-group shareholding will rise to 35.35% from 34.11%. Shareholders will consider the proposal at an EGM scheduled for July 9.

View: This fund-raise is in-line with the management's expectations of utilising this money for debt repayment to bring the net debt to EBITDA from current levels of 1:2 to 1:3. While this equity fund-raise will result in stake dilution for existing shareholders this would improve the shareholding of its' promoters, instilling management confidence. Lower interest costs in the future, positive EBITDA from recently operationalised assets and increasing operational leverage are likely to boost profitability for KIMS.

Impact: Positive

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