KIMS Hospitals IPO: What An Interested Investor Should Know?

The Krishna Institute of Medical Sciences is a hospital chain in India with locations in Andhra Pradesh and Telangana. Dr. Bhaskar Rao Bollineni started it in the Indian city of Nellore in the year 2000. The KIMS Group now operates nine hospitals in the states of Andhra Pradesh and Telangana. NABH and NABL certifications have been granted to the KIMS Hospital Group.The Initial Public Offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) opened for subscription yesterday, and it was already 27 percent subscribed on the first day of bidding.According to the CRISIL Report, KIMS is one of the largest corporate healthcare organizations in AP and Telangana in terms of the number of patients treated and treatments provided. The public issue will be offered for the subscription until June 18, 2021, and the companys promoters may anticipate that subscriptions will increase and meet their expectations.KIMS Hospitals IPO GMP (grey market premium), which was at 60 yesterday, has risen to 75 today, according to market experts.The IPO pricing band for KIMS Hospitals has been set at $815 to $825, with an allotted date of June 23, 2021. The tentative date for KIMS Hospitals first public offering (IPO) is June 28, 2021, and it will be listed on both the NSE and the BSE. KIMS IPO details KIMS IPODetailsIPO Opening Date 16 June 2021 IPO Closing Date 18 June 2021 Issue Type Book Built Face Value 10 per share IPO Price Rs 815 to 825 per equity share Market Lot 18 Issue Size 700 crore Fresh Issue 200 crore Offer for Sale 500 crore General Atlantic Singapore KH Pte Ltd will offer a total of 1,39,77,991 equity shares, Bhaskar Rao Bolaneni will offer up to 7,75,933 equity shares, Rajyashri Bolineni will offer up to 11,63,899 equity shares, and Bolinaini Ramanaiah Memorial Hospitals Private Limited will offer up to 3,87,966 equity shares in the OFS.Kotak Mahindra Capital Company Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, and IIFL Securities Limited are the issues lead managers. KFin Technologies Private Limited is the registrar for this IPO. Krishna Institute of Medical Sciences is a new player in the region. The current figures are excellent, but they must be viewed in the context of the price one must pay to buy such a company. Here is what experts have to say about the KIMS IPO;KIMS went from a loss-making company in 2019 to a profitable company in the prior fiscal year. According to brokerage and research firm Ventura Securities, KIMS revenues, EBITDA, and PAT grew at a three-year CAGR of 20.4 percent, 114 percent, and 105 percent between fiscal years 2017-18 and 2020-2021.Subscribing to this IPO is recommended by Marwadi Financial Services. With a post-issue PE of 32.13X and a market value of Rs 6,601.4 crore, the firm will list at a PE of 32.13X with a market size of Rs 6,601.4 crore, when its peers, such as Apollo Hospitals, are trading at a PE of 238, Marwadi added.. Despite operating in an asset-heavy business, it also has a virtually debt-free balance sheet and healthy FCF in financial year 2020-21, they added. With an eye on listing gains, the brokerage company has a subscribe recommendation on the offering. Expanding into additional geographies may reduce financials in the future due to stiff competition, ICICI Direct stated.Angel Broking analysts believe the IPO is undervalued in comparison to peers. The companys balance sheet is quite robust, with a negative Net Debt/Equity ratio. We anticipate that the planned expansion plans in Bangalore and Chennai can be supported mostly through internal accruals and loans. The issue has been assigned a Subscribe recommendation, they said.