Krishna Institute of Medical Sciences (KIMS) has approved the issuance of 77.02 lakh fully convertible warrants on a preferential basis to members of the promoter group at an issue price of ₹779 per warrant, aggregating ₹599.99 crore. According to reports from CNBC TV18, each warrant is convertible into one equity share within 18 months from the date of allotment. The proposal remains subject to shareholder approval and other regulatory clearances, with the company scheduling an extra-ordinary general meeting for July 9, 2026 to seek shareholder consent. The warrant issue price of ₹779 per warrant is not less than the floor price determined under applicable SEBI regulations and is based on a valuation report from a registered valuer, with the relevant date being June 9, 2026.
Of the total proposed issuance, 64.19 lakh warrants aggregating ₹500 crore will be allotted to promoters Dr. Abhinay Bollineni and Mr. Advik Bollineni, while 12.84 lakh warrants aggregating ₹100 crore will be allotted to promoter-group entity Bharas Ventures LLP. As reported by CNBC TV18, following full conversion of the warrants, Dr. Abhinay Bollineni's shareholding will increase to 34.46 lakh shares from 2.36 lakh shares, while Mr. Advik Bollineni's will rise to 32.50 lakh shares from 40,640 shares. Bharas Ventures LLP, which currently holds no shares, will own 12.84 lakh shares post conversion. The promoter and promoter group's overall shareholding is expected to increase to 35.35% from 34.11% assuming full conversion of the warrants.
The aggregate consideration receivable from the issue is approximately ₹599.99 crore, with Dr. Abhinay Bollineni and Mr. Advik Bollineni each contributing about ₹250 crore and Bharas Ventures LLP contributing ₹100 crore. According to CNBC TV18, each warrant is convertible into one fully paid-up equity share of face value ₹2 and can be exercised in one or more tranches within 18 months from the date of allotment. The payment structure requires 25% of the warrant issue price to be payable at the time of subscription and allotment, with the remaining 75% payable upon conversion. If the warrants are not exercised within 18 months, the entitlement will lapse and the amount paid will be forfeited.
On Friday (June 12), shares of Krishna Institute of Medical Sciences Ltd ended at ₹787.10, up by ₹2.88 or 22.05% on the BSE, reflecting positive market reaction to the warrant approval. The warrant issuance comes amid mixed financial performance for KIMS, with the company's consolidated net profit declining 58.25% to ₹42.50 crore despite a 34.85% increase in revenue to ₹1,074.60 crore in Q4 FY26 over Q4 FY25. The scrip's recent surge of 22.05% suggests investor confidence in the strategic capital raising initiative, with the company stating that the fund raising aims to bolster its capital base.
