IPO

KIMS Hospitals IPO Details : Krishna Institute of Medical Sciences Limited

KIMS HOSPITALS is the parent company of all the healthcare subsidiaries of the group. This list of subsidiaries consist of 9 multi speciality hospitals. The approximate bed capacity for the hospitals is 3060 beds. KIMS is one of the most widespread groups for healthcare in South India. KIMS Hospital group serves the primary, secondary and tertiary care centres in major cities in India. The group initiated its operations in 1973 and today is close to 2500 occupied beds out of its capacity.

IPO DETAILS

The KIMS HOSPITALS IPO is set to launch on 16th June, 2021. The subscription timeline extends till 18th June, 2021. The size for KIMS HOSPITALS IPO is 2143.74 Crore Rs. Shares issued through Offer for sale are 1973.74 Crore Rs. Shares worth 200 Crore Rs are issued through Fresh issue. The minimum lot size is 18 shares and the price is set at 815 Rs.- 825 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	16th June, 2021
IPO CLOSING DATE	18th June, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs
IPO price band	815 Rs. – 825 Rs.
LOT SIZE	18 shares
MINIMUM ORDER QUANTITY	18 shares
ISSUE SIZE	2143.74 Crore Rs.
OFFER FOR SALE	1943.74 Crore Rs.
FRESH ISSUE	200 Crore Rs.
LISTING AT	BSE, NSE
LISTING DATE	28th June, 2021

IMPORTANT DATES

IPO OPENING DATE	16th June, 2021
IPO CLOSING DATE	18th June, 2021
IPO ALLOTMENT DATE	23rd June, 2021
REFUNDS	24th June, 2021
DEMAT A/C CREDITED ON	25th June, 2021
IPO LISTING DATE	28th June, 2021

The KIMS HOSPITALS IPO begins for subscription from 16th June, 2021. The IPO subscription would continue till 18th June, 2021. The allotment status for the shareholders who applied would come on 23rd June, 2021. The refunds for the ones who did not get allotment would be initiated on 24th June, 2021. The DEMAT accounts of shareholders would be credited on 25th June, 2021. The listing of the company would be accompanied on 28th June, 2021.

PROMOTER AND LEAD MANAGERS

Promoters of the company are Adwik Bollineni, Dr. Bhaskara Rao Bollineni, Dr. Abhinay Bollineni, Bollineni Ramanaiah Memorial Hospitals Private Limited and Rajyasri Bollineni. The holding on part of the promoter before IPO allotment was 46.81%. The post-IPO promoter holding would equal 38.84%.

The lead managers for the company are :

Credit Suisse Securities India Private Limited
Axis Capital Limited
IIFL Holdings Limited
Kotak Mahindra Capital Company Limited

OBJECTIVES FOR THE IPO

The company wants to utilize the IPO money for paying off the debts. It also wants some liquidity which could be utilized for pre-payment of further purchases.
The IPO money can also be utilized to fulfill some general corporate purposes.

COMPANY FINANCIALS

Particularly (in Million Rs.)	2020-19	2018-19	2017-18
ASSETS	14360	11960	11198
REVENUE	13401	11288	9240
NET PROFIT	2054	1151	(487)

KIMS Hospitals has an excellent track of revenue increase and profit boost. The company has shown great improvement since its loss making year in 2017-18. It has generated more than 13000 Crore rs of revenue and 2050 Crore Rs. of profit. This is close to 16% margin in profits from revenue earned. Such figures are an excellent display of companies profit margins.

There are two problems in the company. One is the low percentage of promoter holding and second one is the question regarding temporary rise in revenue due to COVID. This is no hidden fact that the pharma companies have had a great run in the last 2 years. Every pharma stock and healthcare stock has boosted in valuations due to a successful profit generation capacity. Hence one should keep a track of the financials and note whether this increase is temporary or permanent. After one or two quarters from IPO launch one should carefully watch and then decide regarding investing into the firm.

PROS

The company has a large hospital base (asset base).
KIMS hospitals runs 9 hospitals and the run for the medical sector has been great for two years. The future scope for pharma companies is bright as well. So for a really long term perspective the company is a good choice.
It has an experience of more than 40 years in this field.
The company is one of the most active healthcare companies in A.P. and Telangana.

CONS

The shareholding pattern of the promoters is in a bad state. Though the hospitals are running well, the promoter holding has decreased to almost 39% which is not too good for any company. The promoters need to have a higher chunk of money for keeping the control of the company. Here they did not have more than 50% shareholding in the previous IPO launch as well. This signifies that the promoters can at any time lose the control of the firm to other major investors. Also with IPO, public shareholding would also start. Hence red lights due to the shareholding pattern of the company.