The public offer of Krishna Institute of Medical Sciences (KIMS Hospitals) is subscribed 37 percent so far on June 17, the second day of bidding, as the offer received bids for 53.3 lakh equity shares against IPO size of 1.44 crore shares, the subscription data available on exchanges showed.
The portion set aside for qualified institutional buyers has seen a subscription of 14 percent and that of non-institutional investors 5 percent.
Retail investors have put in bids of 1.51 times over its reserved portion and employees’ portion was booked 32 percent.
Incorporated in 1973, KIMS Hospitals, one of the largest healthcare groups in Andhra Pradesh and Telangana, launched its IPO for subscription on June 16. The price band for the offer has been fixed at Rs 815-825 per equity share.
The offer comprises a fresh issue of Rs 200 crore and an offer for sale of Rs 1,943.74 crore by selling shareholders including General Atlantic Singapore KH Pte Ltd.
Also read – KIMS Hospitals IPO: 10 things to know before subscribing public issue
KIMS provides multi-disciplinary healthcare services with a key focus on primary, secondary, & tertiary care in tier 2-3 cities. The company offers a comprehensive range of healthcare services including oncology, cardiac sciences, neurosciences, gastric sciences, orthopaedics, renal sciences, organ transplantation, and mother & child care.
As of March 2021, it operates through 9 multi-speciality hospitals under the brand name of ‘KIMS Hospitals’ with an aggregate bed capacity of 3,064 including over 2,500 operational beds.
“The company’s strong operational and financial performance, highly qualified and trained doctors and medical support staff are suitable for further growth of the healthcare group. As of March 31, 2021, the debt-to adjusted EBITDA ratio was 0.95x and the gearing ratio was 0.37x compared to the industry range from 0.1 to 5.2,” said BP Equities.
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On the valuation front, at the upper price band, the company is valued at 31.1x P/E considering the diluted equity shares which is at a discount compared to its listed industry peers (i.e. Fortis Healthcare, Max Healthcare and Apollo Hospitals), the brokerage feels. Considering these factors, BP Equities has given a subscribe rating on this issue for the long term.
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