Existing promoters and shareholders will continue to hold a balance 49% stake, the company added.

SPANV Medisearch Lifesciences runs a Multi-Speciality Hospital in the name of “Kingsway Hospitals”, having over 300+ beds. Postacquisition, the hospital will be renamed “KIMS Kingsway Hospitals”.

“Kingsway Hospitals” is one of the leading multi-specialty hospitals in Nagpur. It was started in the year 2019 by Sancheti family along with a few top practicing doctors at Nagpur. It has quickly emerged as the hospital of choice for the citizens of Nagpur and surrounding areas. The top specialties of Kingsway include Cardiology, Nephrology, Urology, Orthopaedics, Paediatrics, and Oncology.

The acquisition will be completed by way of infusion of funds into the company to the extent of Rs 80 crore, which will be used to repay the existing debts and partly to strengthen the balance sheet.

The company's experience in running multi-specialty hospitals and turning them around will help present acquisition to quickly reach an optimum level of operational efficiency and add value for its shareholders.

The acquisition again demonstrates the capability of the KIMS group to identify the potential acquisition in identified markets with the Doctor partnership model and work successfully with a diverse set of clinical/administrative talents.

The acquisition is the second of its kind as a part of the company's strategy to establish its presence in the state of Maharashtra through strong alliances with local management and doctors.

Dr. Bhaskara Rao, MD, KIMS Hospitals said “The acquisition in Nagpur reinforces our vision to provide affordable quality care to all. The clinical and management team of Kingsway Hospitals echoes our value system and is equally passionate about providing the best clinical outcomes to patients. It also reiterates our commitment to expand in Maharashtra and this will be our second hospital in Maharashtra, the first being Nashik."

Founded by Dr. B. Bhaskara Rao and headquartered in Hyderabad, KIMS Hospitals is one of the largest corporate healthcare groups in Telangana and Andhra Pradesh, providing multi-disciplinary integrated healthcare services, with a focus on tertiary and quaternary healthcare at affordable cost. It has a network of 13 hospitals and 4000 beds spread across Telangana, Andhra Pradesh and Maharashtra.

The company's consolidated net profit declined 21.51% to Rs 69.96 crore despite a 4.72% rise in sales to Rs 495.51 crore in Q1 FY23 over Q1 FY22.