(Image credit: Shutterstock)
The initial public offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) saw a subscription of 3.86 times on June 18, the last day of bidding.
The offer has received bids for 5.56 crore shares against the IPO size of 1.44 crore shares, the subscription data on exchanges showed. The company is selling in a price band of Rs 815-825 a share.
KIMS Hospitals, one of the largest healthcare groups in Andhra Pradesh and Telangana, is looking to raise Rs 2,143.74 crore through the issue that comprises a fresh issue of Rs 200 crore and an offer for sale of Rs 1,943.74 crore by shareholders, including General Atlantic Singapore KH Pte Ltd.
The reserved portion of qualified institutional buyers has been subscribed 5.26 times and that of non-institutional investors 1.89 percent.
Also read: KIMS Hospitals IPO: Should you subscribe?
The part set aside for retail investors has been subscribed 2.90 times and employees have put in bids for 1.06 times of their reserved portion.
KIMS operates nine multispecialty hospitals under the 'KIMS Hospitals' brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of March 31, 2021, which is 2.2 times more beds than the second-largest provider in Andhra Pradesh and Telangana.
Also read: KIMS Hospitals IPO: 10 things to know before subscribing public issue
At the upper price band of Rs 825, the stock is valued at 31.22x of FY21 earnings of Rs 26.42 (based on weighted average diluted basis), said Asit C Mehta who recommended to subscribe the issue from a long-term prospective.
Following the global pandemic and the likely trends of changing lifestyle with health consciousness and spending for the same, KIMS is expected to generate steady growth, the brokerage said.
KIMS on June 15 said it mopped up Rs 955.68 crore from anchor investors at a price of Rs 825 per equity share. The company allocated 1,15,84,060 equity shares to 43 anchor investors, including Nomura Funds, Stock Mother Fund, Segantii India Mauritius, Goldman Sachs, Ghisallo Master Fund, Societe Generale, HDFC Trustee, Axis Mutual Fund, ICICI Prudential and Nippon Life India.
KIMS Hospitals 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.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.