Krishna Institute of Medical Sciences (KIMS Hospitals) initial public offering (IPO) Opens For Bidding. Should You Subscribe?

Krishna Institute of Medical Sciences (KIMS Hospitals)’ Rs 2,144-crore initial public offer (IPO) opens for subscription today i.e. June 16, 2021. The healthcare service provider’s public issue will be open for three days fronm June 16 to June 18, and the shares willl be offered in the price band of Rs 815-825 a share.

The IPO comprises a fresh issue of shares aggregating upto Rs 200 crore and an offer for sale (OFS) of over 2.35 crore equity shares by the promoters and existing shareholders.

The OFS consists of sale of more than 1.6 crore shares by General Atlantic Singapore KH Pte, up to 3,87,966 shares by Dr Bhaskara Rao Bollineni, up to 775,933 shares by Rajyasri Bollineni, up to 387,966 shares by Bollineni Ramanaiah Memorial Hospital and up to 6,005,058 shares by other existing, selling shareholders.

Bids can be placed for a minimum one lot of 18 shares and in multiples of 18 shares thereafter, up to 13 lots.

The company will use the IPO proceeds to repay debts of around Rs 150 crore and for general corporate purposes.

Krishna Institute of Medical Sciences (KIMS) was promoted by Dr Bhaskara Rao Bollineni, Rajyasri Bollineni, Dr Abhinay Bollineni, Adwik Bollineni and Bollineni Ramanaiah Memorial Hospitals. It has nine multi-speciality hospitals in Andhra Pradesh and Telangana, with total capacity of around 3,000 beds.

Axis Capital, Credit Suisse Securities (India), IIFL Holdings and Kotak Mahindra Capital are the book running lead managers to the issue, whereas Link Intime India is the registrar for the IPO.

Meanwhile, the Dodla Dairy IPO has also opened today, whereas the Shyam Metalics and Sona Comstar IPOs will close today, making it four IPOs this week.