{"id":751,"date":"2021-06-12T09:28:07","date_gmt":"2021-06-12T09:28:07","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=751"},"modified":"2021-06-12T09:55:59","modified_gmt":"2021-06-12T09:55:59","slug":"kims-hospitals-will-hit-the-primary-market-on-june-16-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/kims-hospitals-will-hit-the-primary-market-on-june-16-should-you-subscribe\/","title":{"rendered":"KIMS Hospitals Will Hit The Primary Market On June 16. Should You Subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Another player in the IPO basket of June is going to debut on June 16 and that too of a hospital chain in times when Indian households are gathering finance in case if they require to fight against third wave of Covid-19. So far, 17 IPOs have been floated in the primary market in addition with Power Grid Infrastructure Investment Trust and Brookfield REIT this year. This is going to be the 4<sup>th<\/sup> IPO which will be floated in June after Shyam Metalics, Blackstone-based Sona Comstar and Dodla Dairy. These four IPOs will garner an amount of Rs. 9,122.92 crores from the Indian market participants.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#KIMS_Hospitals_IPO_Details\" title=\"KIMS\nHospitals IPO Details:\">KIMS\nHospitals IPO Details:<\/a><\/li><li><a href=\"#Composition_of_Issue_Size\" title=\"Composition\nof Issue Size\">Composition\nof Issue Size<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the\nCompany\">About the\nCompany<\/a><\/li><li><a href=\"#_Industry_Growth_Drivers\" title=\"&nbsp;Industry Growth Drivers\">&nbsp;Industry Growth Drivers<\/a><\/li><li><a href=\"#Peers_Comparison\" title=\"Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \">Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/a><\/li><li><a href=\"#Financials\" title=\"Financials\">Financials<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>KIMS\nHospitals IPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Krishna Institute of Medical\nSciences Ltd.<\/li><li>Industry: &nbsp;Hospital Chain<\/li><li>IPO Size: 2,144 cr.<\/li><li>Price Band: 815-825<\/li><li>Issue Open Date: 16 June, 21<\/li><li>Issue Close Date: 18 June, 21<\/li><li>Listing Date: 28 June, 21<\/li><li>Minimum Lot Size: 18 shares<\/li><li>Face Value: 10 Rs. Per share<\/li><li>Employee Discount: Rs. 40\/ share <\/li><li>Retail Allocation: 10%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Composition\nof Issue Size<\/strong><\/h2>\n\n\n\n<p>The issue size of 2,143.7 crores is a mix of fresh issue of Rs. 200\ncrores and offer for sale of Rs. 1,943.7 crore at the upper price band. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Offer For Sale 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..<\/li><li>According to Draft Red Herring Prospectus, the issue comprises of Rs. 200 crores from issuance of fresh equity will be utilized for repayment of company debt amounting at Rs. 150 crores while the rest will be utilized for general corporate purpose.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the\nCompany<\/strong><\/h2>\n\n\n\n<p>Krishna Institute of Medical Sciences (KIMS) Hospitals are one of the largest corporate healthcare groups in AP and Telangana in terms of number of patients treated and treatments offered, according to the CRISIL Report. The hospital chain major provides multi-disciplinary integrated healthcare services, with a focus on primary secondary &amp; tertiary care in Tier 2-3 cities and primary, secondary, tertiary and quaternary healthcare in Tier 1 cities. The company operates 9 multi-speciality hospitals under the \u201cKIMS Hospitals\u201d brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of December 31, 2020, which is 2.2 times more beds than the second largest provider in AP and Telangana, according to the CRISIL report. They offers a comprehensive range of healthcare services across over 25 specialties and super specialties, including cardiac sciences, oncology, neurosciences, gastric sciences, orthopaedics, organ transplantation, renal sciences and mother &amp; child care.<\/p>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/dodla-diary-will-hit-the-primary-market-on-june-14-should-you-subscribe\/\">Dodla Dairy Will Hit The Primary Market On June 16. Should You Subscribe?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<strong>Industry Growth Drivers<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The destiny of a human being that he is prone\nto get diseased is solely responsible for the growth of hospital and medical\nsciences in the world. <\/li><li>Rising trend in the Indian population, eating\ndisorder and filthy atmosphere will continuously push the demand for hospitals\nin Indian economy. <\/li><li>The hospital chain industry growth tends to\nremain higher due to rising urbanization culture. As people are shifting from\nrural to urban areas and their income is increasing, a shift in visits from government\n\u2013aided medical facilities to private healthcares chains is observed. <\/li><li>Indian economy lags in total healthcare\nexpenditure% to GDP in comparison with various countries. Moreover, rising pandemic\nof Covid-19 has synergized the demand of expenditure towards healthcare\nfacilities.<\/li><li>Out of total healthcare expenditure in India,\n73% is done in private healthcare centers.<\/li><li>With renewed impetus from the PMJAY, the\nhealthcare delivery market is expected to log a CAGR of 17-18% and reach \u20b9 7.07\ntrillion in fiscal 2024.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/h2>\n\n\n\n<p>Healthcare sector is flooded with listed and unlisted peers in\nIndia. In Indian equity markets, hospital chain stocks have performed strongly than\nany other. Despite being highly-leveraged, the sector is richly valued by the\ninvestors. In the listed space: Apollo Hospitals, Narayana Hrundalaya, Fortis\nHealthcare and Max Healthcare out of which Apollo Hospitals have most\nhealthcare centers. The healthcare is industry is trading at a P\/E multiple\naround 100x. One can take cues from the success of listed healthcare peers for\nthe journey of KIMS Hospitals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financials<\/strong><\/h2>\n\n\n\n<p>On the financial front, KIMS Hospitals has been able to generate their revenue with the Compounded Annual Growth rate (CAGR) of more than 20% much higher than its listed peers.. The healthcare chain has been able to generate an operating margin of 28.43%. The company is continuously reducing its dependence upon long term borrowing as it has pay-off their borrowing by Rs. 80 crores in FY21. Moreover, the net proceeds from the fresh issue are expected to make it an almost debt-free entity. The company is one of the three hospitals in India rated \u2018AA\u2019 by CRISIL that increases their worthiness. Despite paying their long term borrowing, the company has been able to generate incremental cash flows. Considering the upper price band and FY20 Earning Per Share (EPS), the company is demanding a P\/E multiple of 30.7x, much lower than the listed peers.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.invest19.com\/blog\/blackstone-backed-sona-comstar-will-hit-the-primary-market-on-june-14-should-you-subscribe\/\">Blackstone backed Sona Comstar Will Hit The Primary Market On June 14. Should You Subscribe?<\/a><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,661<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"751\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">7    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Another player in the IPO basket of June is going to debut on June 16 and that too of a hospital chain in times when [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/kims-hospitals-will-hit-the-primary-market-on-june-16-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":752,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,7],"tags":[],"class_list":["post-751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=751"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/751\/revisions"}],"predecessor-version":[{"id":755,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/751\/revisions\/755"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/752"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}