KIMS IPO : Should you subscribe?

KIMS IPO opens. Should you buy

KIMS IPO opens for subscription on June 16th. The hospital was founded in 2000 is the largest corporate healthcare group in AP and Telangana in terms of number of patients treated and treatments offered. KIMS operates 9 multi-specialty 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.

Details of the IPO

Size of IPO : ₹2143.74 crores (₹200 crores fresh issue ; 1943.74 crores of Offer For Sale)

Subscription dates : 16 June 2021 to 18 June 2021

Price Band : ₹815-₹825 per share

Lot Size : 18 shares

Value of 1 lot : ₹14850 at the upper price range

Maximum lots per person : A retail investor can apply for 13 lots. This would cost ₹193,050.

The net proceeds from the fresh issue will be utilized for repayment of certain borrowings of Rs 150 crore availed by the company and its subsidiaries viz KHKPL, SIMSPL and KHEPL. The funds will also be used for general corporate purposes. Also read Dodla Dairy IPO : Should you subscribe

What do the experts say about KIMS IPO?

Amid advantage of regional dominance, operational efficiency, KIMS has demonstrated one of the best financial performances among peers. It also has an almost net debt-free balance sheet, healthy free cash flow in FY21 despite operating in an asset-heavy industry. KIMS’ ability to turn around acquired assets also seems one of the best in industry,” – ICICI Direct

Given the established brand in the hospitals space in Telangana and Andhra Pradesh states, driven by clinical excellence and affordable treatment options, sizeable bed capacity and plans to expand presence in the adjoining states and initiatives to improve operational efficiencies, would be the key positives,” – Sharekhan

Verdict

Several analysts and research houses have given a SUBSCRIBE rating to this IPO. The IPO is believed to provide listing gains.

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