KIMS Hospitals IPO Review: IPOs IPOs everywhere. This week has been intense for the Indian IPO industry. And why it shouldn’t? After all, stock market is marking its new highs everyday. Here enters another IPO. The Krishna Institute of Medical Sciences Limited (KIMS) IPO opens on 16th March and closes on 18th March 2021.
In this article, we cover the KIMS Hospitals IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.
Table of Contents
KIMS Hospitals IPO Review – About the Company
Founded in 1973, Krishna Institute of Medical Sciences Limited (KIMS) is a healthcare group that currently operates mainly in AP and Telangana. Since its inception, the hospital chain has grown both organically and through a series of acquisitions.
According to a CRISIL report commissioned by KIMS, based on the number of patients treated and treatments offered KIMS is the largest corporate healthcare group in the 2 states.
They operate 9 multi-specialty hospitals with a total bed capacity of 3,064, including over 2,500 operational beds as of March 31, 2021. The report shows that the group has 2.2 times more beds than their nearest competitor in the state.
Their flagship hospital located in Secunderabad (Telangana) is one of the largest private hospitals with a capacity of 1,000 beds if medical colleges are excluded.
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It is important to note that one-third of this capacity was added in the last 3 years. But the hospital has successfully improved its bed occupancy rate from 71.83% to 78.60% over these years.
They offer many healthcare services, including oncology, cardiac sciences, neurosciences, gastric sciences, orthopedics, renal sciences, organ transplantation, and mother & child care. In addition to this, each of its hospitals also offers diagnostic services and pharmacies.
Impact of COVID-19 Pandemic on KIMS Hospitals
The pandemic and the lockdowns that followed have also affected KIMS. Their hospitals faced a substantial decline in in-patient and out-patient volumes in March and April in comparison to February last year.
This period also put their staff of healthcare workers at a heightened risk. This has increased their costs in order to ensure the safety of their staff.
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KIMS Hospitals IPO Review – Competitors
Some of the major competitors of the group include:
Financials of Krishna Institute
Their financials have shown an upward trend when it comes to net profit for the last 3 years. This is one area where KIMS has performed better than its listed peers who have posted negative earnings.
It is important to note here that nearly two-thirds of KIMS revenue is contributed by their 2 branches – KIMS Kondapur and KIMS Secunderabad.
According to an Axis Capital report, KIMS ranked top in terms of 3-year CAGR. KIMS achieved a CAGR of 26% whereas its competitors Narayana Hrudayalaya, Apollo Hospitals Enterprise, and Manipal achieved a CAGR of 19%, 16%, and 16% respectively.
KIMS Hospitals IPO Review – Key IPO Information
The promoters of the company include Dr. Bhaskara Rao Bollineni, Rajyasri Bollineni, Dr. Abhinay Bollineni, Adwik Bollineni, and Bollineni Ramanaiah Memorial Hospitals Private Limited.
The IPO includes an Offer for Sale amounting to Rs 1950 crores. US equity giant General Atlantic Singapore KH Pte Ltd. will be offering 1.6 crore shares for sale.
The promoters Dr, Bhaskara Rao Bollineni, Rajyasri Bollineni, and Bollineni Ramanaiah Memorial Hospitals Pvt. Ltd. will be offering 3.87 lakh, 7.75 lakh, and 3.87 lakh shares respectively.
| Particular | Details |
|---|---|
| IPO Size | ₹2,143.74 Cr |
| Fresh Issue | ₹200.00 Cr |
| Offer For Sale(OFS) | ₹1,943.74 Cr |
| Opening Date | Jun 16, 2021 |
| Closing Date | Jun 18, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹815 to ₹825 per equity share |
| Lot Size | 18 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Jun 28, 2021 |
They have appointed Axis Capital, Kotak Mahindra Capital, Credit Suisse Securities, and IIFL Securities as the lead managers to the issue. Link Intime India Pvt Ltd has been appointed as the registrar to the issue.
Purpose of the Krishna Institute IPO
Apart from Offer for Sale, the funds raised from the IPO will be used for the following purposes:
– Repayment and Prepayment of borrowings. This company intends to use Rs. 150 crore towards this purpose.
– Other General corporate purposes.
The company is also planning to use the proceeds in its plans to expand operations to other areas like Bengaluru, Chennai, Bhubaneshwar, and even central India.
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Closing Thoughts
The IPO opens on 16th June and closes on 18th June 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the growth prospects of Krishna Institute of Medical Sciences Limited (KIMS).
That’s all for this post. Do let us know what you think of the KIMS Hospitals IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
