KIMS IPO subscribed over 26% on the first day: Everything you need to know

The Rs 2,144 crore KIMS IPO will be available for subscription till Friday, June 18, 2021, and the price band of the corporate healthcare firm has been fixed at Rs 815-825 per share.

The IPO comprises a fresh issue of shares aggregating up to Rs 200 crore and an offer for sale of up to 2,35,60,538 equity shares from promoters and existing shareholders. The proceeds from the issue will be used to repay the debt of the company and its subsidiaries.

Investors who wish to subscribe to KIMS IPO can bid in a lot of 18 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,850 to get a single lot of KIMS IPO. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, June 21, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

Kotak Mahindra Capital Company, Axis Capital, Credit Suisse Securities (India) and IIFL Securities are the book-running lead managers to the IPO while Link Intime India is the registrar of the issue.

Before heading into the IPO, raised nearly Rs 955.69 crore from 43 anchor investors. In the regulatory filing, KIMS informed that under anchor investors portion in the public issue 1,15,84,060 equity shares have been subscribed at a price of Rs 825 per share. This amounts to about Rs 955,68,49,500.00.

KIMS is one of the largest corporate healthcare groups in Andhra Pradesh 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.

The research teams at Anand Rathi Share and Stock Brokers and Geojit Financial Services in their respective notes have recommended “Subscribe” to the offer while those at HDFC Securities haven’t given any rating to the IPO.

Anand Rathi Research in its IPO note said, “At the upper end of the IPO price band, Krishna Institute of Medical Sciences Ltd. is offered at 32.2x its FY21 earnings, with a market cap of Rs 66,014 million. Given the company’s  dominant position in the region of Andhra Pradesh and Telangana, diversified revenue across specialties, growth prospects, strong balance sheet along with high RoNW of 23.30 per cent in FY21; we give this IPO a “Subscribe” rating.”