Krishna Institute of Medical Sciences (KIMS) is among the largest corporate healthcare groups in Andhra Pradesh and Telangana, where the number of patients and treatment is offered. It operates nine multi-specialty hospitals under the ‘KIMS Hospitals’ brand. Kims Hospitals IPO will hit the market in 2021.
Table of Contents
Issue
On 26 February 2021, Krishna Institute of Medical Sciences filed Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India in order to raise funds through an initial public offering (IPO).
As per the draft red herring prospectus filed with SEBI, the initial public offering includes fresh issue of shares up to Rs 200 crore and an offer to sell 21,340,931 equity shares of promoters and existing shareholders. The proposal includes reservation for membership by eligible employees.
On 3 May 2021, they had got the permission to launch from their initial public offering(IPO) from SEBI.
Offer for Sale(OFS)
The OFS Include a total of 1,39,77,991 equity shares will be offered by General Atlantic Singapore KH Pte Ltd, up to 7,75,933 equity shares by Bhaskar Rao Bolaneni, up to 11,63,899 equity shares by Rajyashri Bolineni and up to 3,87,966 equity shares by Bolinaini Ramanaiah Memorial Hospitals Private Limited.
Capacity
They have capacity of 3,064 beds including more than 2,500 operational beds. The Hospital brand offers a broad range of health services with over 25 specialties and super specialties, including cardiology, oncology, neurosciences, gastric science, orthopedics, organ transplantation, kidney science and mother and child care.
The Hospital brand have grown from a single hospital to a chain of multi-speciality hospitals through organic development and strategic acquisitions under the guidance of Dr. Bhaskara Rao Bollineni, (Founder and Managing Director) & Dr. Abhinay Bollineni, (Executive Director and CEO).
The first hospital in their network was established in Nellore in 2000 and has a capacity of around 200 beds.
Growth
As per CRISIL report, their flagship hospital in Secunderabad is among the biggest private hospitals in the country at one place (excluding medical colleges), with a capacity of 1,000 beds.
They have expanded their network of hospitals in last few years. They acquired hospitals in Ongole in fiscal year 2017, Vizag and Anantapur in fiscal year 2019 and Kurnool in fiscal year 2020.
One-third of their 3,064 beds were launched in last 4 Years. They have added 880 beds in total, in Visakhapatnam (Vizag), Anantapur and Kurnool in their hospitals in fiscal year 2019 and 2020.
Their overall bed occupancy rates in these hospitals have improved from 71.83% to 80.43%.
Services
They strive to provide quality service to more patients, and they believe that there is a scope for additional patients and better occupancy rates. They strategically focus on the healthcare market of South India.
They understand regional nuances, customer culture and the minds of medical professionals of that area. There is a significant and growing need for quality and affordable healthcare services in that region.
Each of their hospitals has integrated clinical services and pharmacies that cater to their clients.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 1,287.42 | 1,195.89 | 1,117.60 | 958.01 | |
| Total Revenue | 977.38 | 1,128.73 | 923.87 | 700.05 | |
| Profit After Tax | 146.86 | 115.07 | (48.59) | (46.19) | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 16.00 | 15.87 | 3 |
| Financial Year 2019 | (6.89) | (6.89) | 2 |
| Financial Year 2018 | (9.44) | (9.44) | 1 |
| Weighted Average | 4.13 | 4.07 | |
| (9 months) Dec. 31, 2020 | 18.48 | 18.48 | – |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The offer
- Clinical performance and economical healthcare are the cornerstones of local leadership.
- Capacity to hire, educate, and maintain top-notch doctors, consultants, and medical support personnel.
- Proven track record of excellent operational and financial results.
- Well-positioned to dominate in India’s enormous, unregulated, but fast developing, neglected cheap healthcare market.
- A methodical strategy to acquisitions that results in market expansion.
- Strong institutional stakeholder commitment and a knowledgeable senior management team.
IPO Details
| IPO Opening Date | 16 June 2021 |
| IPO Closing Date | 18 June 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 815 to 825 per equity share |
| Market Lot | 18 |
| Min Order Quantity | 18 |
| Listing At | BSE, NSE |
| Issue Size | 700 cr |
| Fresh Issue | 200 cr. |
| Offer for Sale | 500 cr. |
IPO Tentative Date
Kims Hospitals IPO opening date 16 June 2021, and the close dating 18 june 2021. The issue may list on 28 June 2021.
| IPO Open Date | 16 June 2021 |
| IPO Close Date | 18 June 2021 |
| Basis of Allotment Date | 23 June 2021 |
| Initiation of Refunds | 24 June 2021 |
| Credit of Shares to Demat Account | 25 June 2021 |
| IPO Listing Date | 28 June 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
Kims Hospitals IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of kims Hospital IPO.
Promoters
- Dr. Bhaskara Rao Bollineni
- Dr. Abhinay Bollineni
- Rajyashri Bolineni
- Bolinaini Ramanaiah Memorial Hospitals Private Limited.
- Adwik Bollineni
Promoter Holding
| Pre Issue Share Holding | 37.17% |
| Post Issue Share Holding |
Kims Hospital IPO GMP
Kims Hospital IPO Grey market Premium is as follows and you can check GMP of other 4 IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 27 June 2021 | 120 | 3500 | |
| 26 June 2021 | 99 | 2500 | |
| 25 June 2021 | 83 | 730 | |
| 24 June 2021 | 73 | 850 | |
| 23 June 2021 | 77 | 650 | |
| 22 June 2021 | 80 | 1700 | |
| 21 June 2021 | 78 | 500 | |
| 20 June 2021 | 60 | 1000 | |
| 19 June 2021 | 65 | 1500 | |
| 18 June 2021 | 80 | 2200 | |
| 17 June 2021 | 175 | 2500 | |
| 16 June 2021 | 210 | 3200 | |
| 15 June 2021 | 195 | 4500 | |
| 14 June 2021 | 210 | 3500 | |
| 13 June 2021 | 225 | 2000 | |
| 12 June 2021 | 210 | 250 | |
| 11 June 2021 | 200 | 1500 | |
| 10 June 2021 | 155 |
Check The GMP Of other 4 IPOs
Kims Hospitals IPO Review
You can apply with long term view as it they are in healthcare industry which mostly see huge ups and downs nowadays due to corona but company is stable and management is positive.
However, Listing gains might not be very good. So if you are only looking for listing gain then apply for maximum 1 lot.
Kims IPO Risk
They rely heavily on their healthcare providers, especially the doctors we hire on a consulting basis. Increased wages could eat into profit margins.
For Fiscal Years 2019, 2020, and 2021, the attrition rate for its healthcare workers, which includes resident specialists (such as DNB students), consultant doctors, nursing staff (such as interns), and paramedical workers, was 39.7%, 39.0%, and 51.6 percent, correspondingly. [This will need to be tracked in the future.]
The greater attrition rate in CY20 can be attributed to the large number of nursing personnel and temporary hiring needed to deal with COVID. Interesting caveat: they’ve kept over 80% of their doctors since their founding in 2000.
Kims Hospitals IPO Brokerage views
- Yes Securities : Only with long terms view
- Choice Brokering: Only with long terms view
- Axis Securities: Only with long terms view
- IIFL Securities: Only with long terms view
- Trade swift: Only with long terms view
- Anand Rathi : Only with long terms view
- ICICI Securities: Only with long terms view
Kims Hospitals IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Apollo Hospitals Enterprise Limited | 93.6 |
| 2 | Fortis Healthcare Limited | 208.6 |
| 3 | Narayana Hrudayalaya Limited | 76.8 |
| 4 | Max Healthcare Institute Limited | 103.8 |
Kims Hospital IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 16 June 2021 | 1 | 0.14 | 0.02 | 1.00 | 0.27 | 0.27 |
| 17 June 2021 | 2 | 0.32 | 0.09 | 1.95 | 0.66 | 0.56 |
| 18 June 2021 | 3 | 5.26 | 1.89 | 2.90 | 1.06 | 3.84 |
Kims Hospitals IPO Prospectus
Contact Details
Krishna Institute of Medical Sciences Limited
D. No. 1-8-31/1, Minister’s Road, Secunderabad – 3,
Telangana 500 003, India
Tel: +91 40 4418 6000
E-mail: [email protected]
Website: www.kimshospitals.com
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Lead Manager(s)
- Axis Capital Limited
- IIFL Securities Limited
- Kotak Mahindra Capital Company Limited
- Credit Suisse Securities (India) Private Limited
We hope we are able to answer all your questions about Kims Hospitals IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
Note:
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Kims Hospitals Limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Kims Hospitals Limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Kims Hospitals IPO Opening Date?
Kims Hospitals IPO will open 16 June 2021.
Kims Hospitals IPO Listing Date?
Kims Hospitals IPO will list 28 June 2021.
Kims Hospitals IPO GMP Today?
Kims Hospitals IPO Grey Market Premium is INR 120.
Kims Hospitals IPO Allotment Date?
Kims Hospitals IPO basis of allotment will be on 23 June 2021.
Lot size for Kims Hospitals IPO?
Lot size for Kims Hospitals IPO is 18.
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