KIMS Hospitals
IPO Size
`2144 Cr
Price Band
`815-825 Per Share
Minimum Lot Size
18 Share
Face Value
`10 Per Share
Employee Discount
`40 Per Share
Retail Allocation
10%
Issue Open Date
16 June, 21
Issue Close Date
18 June, 21
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
About the Company:
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 & 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 “KIMS Hospitals” 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 & child care.
Outstanding Litigation:
| S.No. | 1 - Company | 2 - Directors | 3 - Promoters | |||
| Entity Name | By the Company | Against the Company | By the Sponser Group | Against the Sponsor Group | By the Sponser | Against the Sponser |
| Criminal cases | - | 4 | - | 2 | - | 1 |
| Material civil cases | 1 | 3 | - | - | - | - |
| Taxation matters | - | 10 | - | - | - | - |
| Regulatory Procedings | - | - | - | - | - | 2 |
| Amt. (In Million Rs.) | Not Quantifiable | 361.81 | - | Non-Quantifiable | - | Non-Quantifiable |
Financial Statements:
| Income Statement (In Millions) | FY20 | FY19 | FY18 | |
| Gross Operating Income | 1638.88 | 1422.43 | 1184.71 | |
| Cost of Employee & Inventory | 568.54 | 504.88 | 407.95 | |
| Other Expenses | 658.81 | 582.64 | 559.16 | |
| EBITDA | 411.53 | 334.91 | 217.6 | |
| Depreciation | 121.19 | 151.09 | 63.74 | |
| Interest | 61.58 | 63.23 | 30.00 | |
| Profit Before Tax | 228.76 | 120.59 | 123.86 | |
| Tax | 70.43 | 6.02 | 68.07 | |
| Profit After Tax | 158.33 | 114.57 | 55.79 | |
The promoters of the company are Dr. Bhaskara Rao Bollineni, Rajyasri Bollineni, Dr. Abhinay Bollineni, Adwik Bollineni, and Bollineni Ramanaiah Memorial Hospitals Private Limited.
Healthcare sector is flooded with listed and unlisted peers in India. In Indian equity markets, hospital chain stocks have performed strongly than any other. Despite being highly-leveraged, the sector is richly valued by the investors. In the listed space: Apollo Hospitals, Narayana Hrundalaya, Fortis Healthcare and Max Healthcare out of which Apollo Hospitals have most healthcare centers. The healthcare is industry is trading at a P/E multiple around 100x. One can take cues from the success of listed healthcare peers for the journey of KIMS Hospitals.
The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 1,75,49,000 equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of 17.5 million equity Shares aggregating up to ₹1,943.7 Cr (at an upper price band of Rs. 825).
The company has planned to raise fresh capital comprising an aggregate of 24,24,242 equity shares having Face Value ₹10 aggregating up to Rs. 200 Cr at the upper price band of Rs. 825. The net proceeds utilized for utilized for repayment of company debt amounting at Rs. 150 crores while the rest will be utilized for general corporate purpose.