JMI Hospital Requisite Manufacturing Ltd, a company listed in the pharmaceuticals and chemicals sector of the stock market, has decided to implement a strategic structural change in one of its subsidiaries. The company’s Board of Directors has approved the transformation of its associate company, JMI Specialized Hospital Ltd (JSHL), from a private limited company into a public limited company.

On Wednesday (3 December), JMI Hospital informed investors of this decision through the Dhaka Stock Exchange (DSE). The proposal was formally approved at the Board meeting held on Tuesday afternoon.

According to company disclosures, JMI Hospital recently invested an additional Tk 10 crore 60 lakh 7 thousand in JSHL. With this new investment, JMI Hospital’s total investment in JSHL has reached Tk 31 crore 60 lakh 7 thousand, representing more than 50% ownership. This level of ownership classifies JSHL as a subsidiary of JMI Hospital.

However, at the latest Board meeting, it was decided that no further investment will be made in JSHL. Additionally, JMI Hospital will reduce its ownership stake to below 50%. As a result, JMI Specialized Hospital will shift from being a subsidiary company to an associate company.

The company further stated that despite reducing its ownership stake, it will continue to maintain “significant influence” over JSHL. Experts believe that converting into a public limited company will allow JSHL to operate on a larger scale in the future and open up avenues for raising new capital. This move could be part of a long-term strategy aimed at expanding the company’s overall business operations.