KIMS Hospital IPO: Fixed at price band of Rs 815-825 a share; to open on June 16 - What you as an investor should know from DHRP

The Hyderabad-based Krishna Institute of Medical Sciences (KIMS) on Friday, June 11, fixed a price band of Rs 815-825 a share for its Rs 2,144-crore IPO, according to PTI. KIMS is planning to open the public subscription on June 16. 

The three-day initial public offer (IPO) will close on June 18, according to the company.

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The company filed its draft red herring prospectus (DRHP) in April this year, in order to raise Rs 200 crore from the IPO through a fresh issue of equity shares. 

KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana. 

KIMS provides multi-disciplinary healthcare services with a key focus on primary, secondary, and tertiary care in tier 2-3 cities. The company offers a comprehensive range of healthcare services including oncology, cardiac sciences, neurosciences, gastric sciences, orthopedics, renal sciences, organ transplantation, and mother and child care. 

It operates through 9 multi-specialty hospitals under the brand name of KIMS Hospitals with an aggregate bed capacity of 3,064 under the KIMS Hospitals brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds, as of March 31, 2021. 

The IPO comprises an offer for sale of up to 2,35,60,538 equity shares from promoters and existing shareholders. 

Total 1,60,03,615 shares would be offered by US equity giant General Atlantic Singapore under the offer-for-sale, up to 3,87,966 equity shares by Dr Bhaskara Rao Bollineni, up to 7,75,933 shares by Rajyasri Bollineni, up to 3,87,966 equity shares by Bollineni Ramanaiah Memorial Hospitals, and 60,05,058 shares by other existing selling shareholders. 

The offer includes a reservation of shares to the tune of Rs 20 crore for employees. 

At the upper end of the price band, the IPO is expected to fetch Rs 2,144 crore. 

Total 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional bidders and 10 per cent for retail investors. 

Proceeds from the fresh issue will be used to repay debt of the company and its subsidiaries. 

Kotak Mahindra Capital Company, Axis Capital, Credit Suisse Securities (India) and IIFL Securities have been appointed as book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.