The IPO of Krishna Institute of Medical Sciences, which is owned by General Atlantic Investments, has opened from today i.e. June 16. The price band of this IPO has been fixed at Rs 815-825 per share. This IPO will close on June 18.
The IPO will have a fresh issue of Rs 200cr and an offer for sale of 2,35,60,538 equity shares. Under this offer for sale, General Atlantic Singapore KH 1,60,03,615 Equity Shares, Dr Bhaskara Rao Bollineni 3,87,966 Equity Shares, Rajasri Bollineni 7,75,933 Equity Shares, Bollineni Ramanaiah Memorial Hospitals 3, 87,966 equity shares and other shareholders will sell 60,05,058 equity shares.
In this offer, shares worth Rs 20 crore are reserved for employees. The lot size of the offer will be 18 equity shares and then in multiples thereof. The proceeds from this issue will be used to meet the general needs of the company and to repay the debt of Rs 150 crore.
The company and its subsidiaries had a debt of Rs 270.46 crore as on March 31, 2021. Apart from this, there was also non-fund based debt of Rs 2.17 crore.
75 per cent of the IPO is reserved for QIBs, 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The company has 267 shareholders, including General Atlantic. In this, General Atlantic’s holding is 40.91 percent.
Krishna Institute of Medical Sciences is the largest corporate healthcare chain in Andhra Pradesh and Telangana. The company runs 9 multi-specialty hospitals under the KIMS Hospitals brand with 364 beds. These include 2500 operational beds.
Kotak Mahindra Capital Company, Axis Capital, Credit Suisse Securities (India) and IIFL Securitie are the Book Running Lead Managers of this IPO.
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ICICI Direct Recommended Buy for listing gain in this IPO. However, ICICI Direct also believes that due to heavy competition, there may be challenges in expanding the hospital chain to other parts of the country.
Anand Rathi has also advised to subscribe in this IPO. Anand Rathi believes that the balance seat of the company is very strong. The company has a very good hold in Andhra Pradesh and Telangana. Given this, there is a lot of potential for growth going forward.
Venture Security It says that KIMS can increase its network bed capacity to 3800 by FY 2024. For this, the company can expand both brownfield and greenfield by investing Rs 815.8 crore in this period.
Marwari Financial Services has also advised to subscribe in this IPO. Marwari Financial says the company looks attractive from a valuation perspective as compared to its peers. Keeping that in mind one should invest in this IPO.
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