Healthcare service provider Krishna Institute of Medical Sciences (KIMS) will launch its initial public offering (IPO) on June 16. The issue which has a price band of Rs 815-825 per share will close on June 18.
The company had filed its draft papers with the Securities and Exchange Board of India (SEBI) in February and received a nod from the market regulator in April.
The IPO comprises a fresh issue of Rs 200 crore and an offer for sale of up to 2,35,60,538 equity shares. The company's promoter's stake at 46.8 percent in the firm currently will decrease to 38.8 percent post the IPO.
Here's all you need to know about the issue:
Opening Date: June 16, 2021
Closing Date: June 18, 2021
Price Band: The price band for the issue has been set at Rs 815-825 per share.
About the firm: Incorporated in 1973, Krishna Institute of Medical Sciences Ltd. (KIMS) is one of the largest corporate healthcare groups in AP and Telangana in terms of the number of patients treated and treatments offered.It operates nine multi-specialty hospitals under the 'KIMS Hospitals' brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of December 31, 2020.
Size of the issue: The IPO comprises a fresh issue of Rs 200 crore and an offer for sale of up to 2.35 crore equity shares. Total issue size comes to Rs 2,143.7 crore.
In the OFS, 1.60 crore shares would be offered by investor General Atlantic Singapore KH, 3.87 lakh by Dr Bhaskara Rao Bollineni, 7.75 lakh shares by Rajyasri Bollineni, 3,87,966 shares by Bollineni Ramanaiah Memorial Hospitals, and 60 lakh by other existing selling shareholders.
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Reservation: The offer also includes a reservation of shares up to Rs 20 crore for employees. The 75 percent of issue size has been reserved for qualified institutional buyers, 10 percent for retail, and the balance 15 percent for non-institutional investors.
Objective: The net proceeds from the fresh issue will be utilised for repayment of certain borrowings (Rs 150 crore) availed by the company and its subsidiaries; and general corporate purposes.
Minimum Bid: Investors can bid for a minimum of 18 equity shares and in multiples of 18 equity shares thereafter. The minimum bid lot comes to Rs 14,850 at the higher end of the price band.
Book Runners: Kotak Mahindra Capital Co Ltd, Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd and IIFL Securities Ltd have been appointed as book-running lead managers to the issue
Financials: Over the period FY18-21 revenues, EBITDA, and PAT have grown at a 3-year CAGR of 20.4 percent, 114 percent, and 105.2 percent, respectively.
Outlook: "KIMS is well-positioned to consolidate India’s large, unorganized and yet rapidly growing and underserved affordable healthcare market. Additionally, it maintains a standard of high-quality healthcare by consistently employing a diverse pool of talented doctors, nurses and paramedical professionals. The company’s financial performance has been quite encouraging with healthy growth in revenue and profitability," said Religare Broking.
Allotment and listing dates: After closing on June 18, the company will finalise basis of allotment around June 23 and is likely to be listed around June 28.