KIMS IPO aka Krishna Institute of Medical Sciences IPO is launched for subscription on Wednesday 16, June 2021, and will be available for subscription till Friday, June 18, 2021.
The company is looking to raise Rs.2,143.74 crore through public issue with a fresh issue worth Rs 200 crore and a offer-for-sale (OFS) 2.35 crore equity shares from promoters and existing shareholders.
The offer includes Rs 20 crore worth of shares set aside for the company’s employees, who will avail a discount of up to Rs 40 per share on the issue price.
The company has set the IPO price band at Rs 815-825 , which will conclude on June 18. Investors can bid for a minimum of 18 shares and in multiples of 18 thereafter.
Ahead of the IPO, the Krishna Hospitals has already raised Rs 955.68 crore it has decided to allocate 1,15,84,060 equity shares to 43 anchor investors at allocation price of Rs 825 per equity share i.e. the upper band of the ipo price.
Which included Nomura Funds, Stock Mother Fund, Segantii India Mauritius, Goldman Sachs, Zaaba Pan Asia Master Fund, Integrated Core Strategies, Moon Capital, Ghisallo Master Fund, and Societe Generale.
Domestic investors invested in the company through anchor book included HDFC Trustee, Axis Mutual Fund, ICICI Prudential, Nippon Life India, IDFC MF, UTI MF, Mirae MF, and HDFC Life Insurance Company.
The equity shares of KIMS IPO are proposed to be listed on both BSE and NSE.
General Atlantic-backed KIMS Hospitals is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of number of patients treated and treatments offered.
The promoters, the Bollineni family will hold 39% stake after the issue, while General Atlantic will hold 20%.
The latest KIMS GMP, Grey market premium price (GMP) for Krishna Institute of Medical Sciences (KIMS) IPO’s were seen up by more than 21-24% and were trading around Rs.990-1000 as of today, This means people are expecting it to open on listing day to be at least at Rs.900 or more.
Having said that, I would like to add here that many people underestimated Stovekraft IPO before it’s launch, however the share price made a high of Rs.545 above the pre-open IPO price band of Rs.384.
Likewise for HFFC (Home first finance) IPO, the GMP before launch was at about Rs.650 however the stock got listed at Rs.540 on the other hand for IRFC IPO many people recommended a BUY and GMP were also seen at quite high range but unfortunately it open at a discount price and is currently trading at Rs.25.10.
GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Checkout below latest data for all the major IPO’s in 2021 and their last traded price in comparison to listing price to gain some insights.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
Having said that, one must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the KIMS IPO let us talk about in brief about the company and its financials and other details step by step.
About Krishna Institute of Medical Sciences:
Krishna Institute of Medical Sciences Limited (KIMS) Started by renowned cardiothoracic surgeon Dr Bhaskara Rao Bollineni in 2000.
Krishna Institute of Medical Sciences (KIMS) is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of number of patients treated and treatments offered.
It provides multi-disciplinary integrated healthcare services, with a focus on primary, secondary and tertiary care in Tier 2-3 cities and primary, secondary, tertiary and quaternary healthcare in Tier 1 cities.
It operates 9 multi-specialty hospitals under the KIMS Hospitals brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of Mar 31, 2021, which is 2.2 times more beds than the second largest provider in AP and Telangana.
It offers a comprehensive range of healthcare services across over 25 specialties and super specialties, including cardiac sciences, oncology, neurosciences, gastric sciences, orthopaedics, organ transplantation, renal sciences and mother & child care.
The first hospital in its network was established in Nellore (AP) in 2000 and has a capacity of approximately 200 beds. Its flagship hospital at Secunderabad (Telangana) is one of the largest private hospitals in India at a single location (excluding medical colleges), with a capacity of 1,000 beds as of Mar 31, 2021.
The group has significantly expanded its hospital network in recent years through its acquisitions of hospitals in Ongole (AP) in Fiscal Year 2017, Vizag (AP) and Anantapur (AP) in Fiscal Year 2019 and Kurnool (AP) in Fiscal Year 2020.
Some of its hospitals, including the flagship hospital at Secunderabad (Telangana), have been accredited with the NABH Standard for Emergency Care and Green Operating Theatre by Bureau VERITAS.
KIMS also conducts medical education programs through its affiliations with state medical boards and universities, for various broad and super specialties at its hospitals in Telangana at Secunderabad and Kondapur, including for DNB and post-doctoral fellowship programs.
It also offers post-graduate, undergraduate and diploma programs that are affiliated with Kaloji Narayana Rao University of Health Sciences and the Telangana Para Medical Board.
Financials Of Krishna Institute of Medical Sciences (KIMS):
KIMS Limited had total income of 1340.1 crore and adjusted EBITDA of 381.0 crore in FY21, which were the highest in AP and Telangana.
As you can see below the revenue, assets and profit grow exponentially since covid-19 inception. The company growth is at CAGR of 20.40% in FY19 and 114% in FY21.
As of FY21, KIMS’ debt-to-adjusted EBITDA ratio was 0.71x and gearing ratio was 0.31x compared to the industry range of 0.1x-5.2x. It has achieved strong free cash flow by effectively managing capital expenditure.
With KIMS’ low capital expenditure per bed, it was able to improve adjusted EBITDA from 174.0 crore in FY19 to 381.0 crore in FY21.
KIMS is one of only three hospitals in India that are rated AA by Crisil. Looking at the ongoing pandemic and strong numbers one may invest in it for a short term period, having said that once the pandemic is over incase, than it may find difficult to expand its business across geography.
Krishna Institute of Medical Science(KIMS) Peers Comparison:
KIMS peers groups include Apollo Hospitals, Shalby, Fortis healthcare, Naryana, Max Healthcare etc. KIMS has demonstrated one of the best financial performances among peers.
It also has almost net debt free b/s, healthy FCF (free cash flow) in FY21 despite operating in an asset heavy industry.
KIMS’ ability to turn around acquired assets also seems one of the best in industry.
In FY21, KIM’s capital expenditure per bed was 69.1 lakh for hospitals in Tier I cities and 22.1 lakh for hospitals in Tier II, III cities compared to industry average of 50-80 lakh in Tier 1 cities and 10-50 lakh in Tier II, III cities.
In FY21, KIMS’ nine hospitals recorded ARPOB of 20,609, a bed occupancy rate of 78.60%, and an ALOS of 5.53 days, on an aggregate basis.
In FY21, ARPOB for hospitals in Tier I cities was 39,571 and ARPOB for hospitals in Tier II, III cities was 11,187. Since inception in 2000, the company has retained over 80% of doctors.
KIMS IPO Details:
KIMS IPO will sell shares at Rs 815-825 per share in its 3 day initial public offering starting on June 16 to June 18, 2021.
The shares of KIMS IPO will be allotted on 21 June 2021, The tentative date of Krishna Hospitals IPO listing is around Jun 28, 2021.
Objects of the Offer (Values in (Rs) crore):
Repayment/Pre-payment of Borrowings =150.0
General corporate purposes = 50.0
Total Fresh Issue = 200.0
Offer for Sale = 1943.7
KIMS Issue break-up:
QIB – 75% of the offer – ₹ 1592.81 crores
NIB – 15% of the offer – ₹ 318.56 crores
RET – 10% of the offer – ₹ 212.37 crores
Shareholding Pattern(%) and Promoters Of Krishna Institute of Medical Sciences(KIMS):
Pre-Issue = Promoter Group 46.8, Public 53.2
Post-Issue = Promoter Group 38.8, Public 61.2
The promoters, the Bollineni family will hold 39% stake after the issue, while General Atlantic will hold 20%.
Frequently Asked Question (FAQ):
1.What Is The Symbol For Krishna Institute of Medical Sciences ?
Ans: The Symbol is KIMS
2.When Krishna Hospitals IPO Coming?
Ans: The Issue Period for Krishna Hospitals IPO is 16-June-2021 to 18-June-2021.
3. Post Modification Period For Krishna Hospitals IPO?
Ans: The Post issue Modification Period for IPO is 21-June-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Krishna Hospitals IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 21-June-2021 (upto 12:00 PM).
5. What Is The Issue Type For Krishna Hospitals IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Krishna Hospitals IPO?
Ans: The Price (Band) Range for Krishna Hospitals IPO is Rs.815 to Rs.821 per equity share.
7. What Is The Lot Size For Krishna Hospitals IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Krishna Hospitals IPO is of 18 Equity Shares and in multiples thereof 18 Equity Shares.
8. Who Are The Book Running Lead Managers For Krishna Hospitals IPO?
Ans: The Book Running Lead Managers are, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited
9. What Is The Face Value For Krishna Hospitals IPO?
Ans: The Face Value is of Rs.10 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Krishna Hospitals IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Maximum Subscription Amount for Eligible Employee is Rs.5,00,000
Discount for Rs.40/- per Equity Share for Eligible Employees of Krishna Institute of Medical Sciences Limited
The Maximum Bid Quantity for QIB Investors is 14,158,296 equity shares in multiple of 18 Equity Shares
The Maximum Bid Quantity for NIB Investors is 6,442,272 equity shares in multiple of 18 Equity Shares
The Name of the Registrar is Link Intime India Private Limited
The Contact person name number and Email id is Shanti Gopalkrishnan, 022 4918 6200, firstname.lastname@example.org
The Address of the Registrar is C-101, 247 Park L B S Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India
Where To Check KIMS IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
Along with the structural demand existing in the country and the potential opportunity it provides for growth, provision of healthcare in India is still riddled with many challenges.
The key challenges are inadequate health infrastructure, unequal quality of services provided based on affordability and healthcare financing.
According to the Global Health Expenditure Database compiled by the World Health Organisation (WHO), India’s current expenditure on healthcare was 3.5% of gross domestic product (GDP) in 2018. India’s real GDP in fiscal 2019 was ₹ 139.8 trillion (constant fiscal 2012 prices).
Accordingly, India’ current healthcare expenditure during fiscal 2019 is estimated at ₹ 4.9 trillion.
India trails not just developed countries such as the United States (the US) and the United Kingdom (the UK), but also developing countries such as Brazil, Nepal, Vietnam, Singapore, Sri Lanka, Malaysia, and Thailand in terms of healthcare spending as a percentage of GDP as of CY2018.
Therefore, in forthcoming years you will spending in this section of industry i.e. healthcare to be going high.
Let us now checkout some of the strengths and risk factors for KIMS Limited:
Some of the qualitative factors and strengths of KIMS:
- Regional leadership driven clinical excellence and affordable healthcare
- Ability to attract, retain high quality doctors, consultants, medical support staff
- Track record of strong operational and financial performance
- Disciplined approach to acquisitions resulting in successful inorganic growth
Some of the Risk Factor for KIMS:
- Highly dependent on hospitals in Hyderabad (Telangana)
- Geographical concentration risk
- Retention of talent
- Competition risk
Therefore, it is always advisable to go through KIMS IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information.
All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.