Krishna Institute of Medical Sciences IPO: Opens today; Key details an investor should know before subscribing

The Initial Public Offering (IPO) of Krishna Institute of Medical Science Ltd.'s (KIMS) will open for subscription today, i.e. on June 16, 2021. The price band for the offer has been fixed at Rs 815-825 per equity share.

General Atlantic-backed hospital chain Krishna Institute seeks to raise Rs 2,144 crore in its initial public offer. The public issue will open for subscription on Wednesday till June 18, 2021.

The initial public offering comprises a fresh issue of shares aggregating up to Rs 200 crore and an offer for sale of up to 2,35,60,538 equity shares from promoters and existing shareholders. A total of 1,60,03,615 equity shares would be offered by General Atlantic Singapore KH Pte Ltd under the offer for sale, up to 3,87,966 equity shares by Dr Bhaskara Rao Bollineni, up to 7,75,933 equity shares by Rajyasri Bollineni, up to 3,87,966 equity shares by Bollineni Ramanaiah Memorial Hospitals and 60,05,058 equity shares by other existing selling shareholders.

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

The institute will use the proceeds from the fresh issue to repay the debt of the company and its subsidiaries.

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

Besides, the institute has raised Rs 955 crore by allocating shares to the anchor investors at Rs 825 per share. The company has decided to allocate 1,15,84,060 shares to anchor investors at Rs 825 per share, which is the upper end of the price band. At this price, it has garnered Rs 955.68 crore, according to a circular on the BSE website.

The anchor investors include names like Nomura Funds Ireland Republic Limited Company, Goldman Sachs (Singapore) Pte-ODI, BNP Paribas Arbitrage-ODI, Elara India Opportunities Fund, Moon Capital Trading Pte Ltd and Integrated Core Strategies Asia Pte Ltd.

In addition, HDFC Mutual Fund (MF), Axis MF, ICICI Prudential MF, L&T MF, UTI MF, HDFC Life Insurance Company, Tata AIA Life Insurance Co Ltd participated in the anchor bidding.

Krishna Institute of Medical Sciences (KIMS) is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of the number of patients treated and treatments offered. It operates nine 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.