Krishna Institute of Medical Sciences’ Rs 2,143.74-crore initial public offering (IPO) will open for subscription next week on June 16, 2021 in the price band of Rs 815-825 per share. The anchor investor bidding will take place on June 15, 2021. The issue will close for subscription on June 18. The public issue comprises fresh issue of equity shares worth up to Rs 200 crore and offer-for-sale (OFS) of 2.35 crore shares by its existing promoters and shareholders. The OFS comprises sale of up to 1.60 crore shares by General Atlantic Singapore KH Pte Ltd, up to 3.87 lakh shares by Dr, Bhaskara Rao Bollineni, up to 7.75 lakh shares by Rajyasri Bollineni, up to 3.87 lakh shares by Bollineni Ramanaiah Memorial Hospitals Private Ltd.
Investors can bid for a minimum lot of 18 shares and in multiples thereof. Up to 75 per cent (Rs1,592.81 crore) portion of the net offer has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent (Rs 318.56 crore) for non-institutional buyers (NIBs) and 10 per cent (Rs 212.37 crore) for retail investors. While equity shares worth Rs 20 crore have been kept reserved for employees. A discount of Rs 40 per share will be given to the eligible employees bidding in the employee reservation portion.
Axis Capital, Kotak Mahindra Capital, Credit Suisse Securities and IIFL Securities have been appointed as merchant bankers to advise the company on the IPO. Lin Intime India Private Ltd will be the registrar to Krishna Institute of Medical Sciences issue. The peer group companies listed in India are Apollo Hospitals Enterprise, Fortis Healthcare, Narayana Hrudayalaya, and Max Healthcare Institute. The weighted average return on net worth for fiscals 2019, 2020 and 2021 is 16.82 per cent.
The company has planned to utilise the net proceeds towards funding the repayment/prepayment of certain borrowings worth Rs 150 crore and for general corporate purposes. KIMS Hospital Kurnool Private Limited (KHKPL) runs a multi-specialty hospital at Kurnool in Andhra Pradesh with a total of 200 beds, all of which were operational beds as on March 31, 2021.