Buy IPO offering in Medical Industry: Krishna Institute of Medical Sciences

Maharashta based a super-specialty hospital chain Krishna Institute of Medical Sciences Ltd (KIMS Hospitals has hired three investment bankers for its initial public offering.

A company has hired Axis Capital, ICICI Securities Ltd and Edelweiss Financial Services Ltd to manage the IPO. And this Hyderabad-based company aims to raise Rs 600 crore.

By the end of this year The hospital chain is likely to file a draft red herring prospectus with capital markets regulator the Securities and Exchange Board of India (SEBI). Mint has reported the development first.
In 2014 for a minority stake Private equity firm ICICI Venture, which had invested around Rs 220 crore in the hospital chain, is likely to exit during the public issue, as per our study. KIMS was started in 1996 and has about 1,800 beds across five super-specialty hospitals in Telangana and Andhra Pradesh. The company reported net sales of Rs 393.95 crore in the fiscal year ended on 31 March 2015 against Rs 349.45 crore the year 2016, we found that, the data research platform of VCCircle. Net profit rose to Rs 7.55 crore from Rs 6.85 crore.

The IPO of company’s plans come on the back of successful public floats in the past year by healthcare companies including diagnostics chains Dr Lal PathLabs and Thyrocare, and hospital operator Narayana Health, which was listed earlier this year.

A healthcare chain Aster DM Healthcare Ltd, which runs hospitals in India and the Middle East, filed its draft prospectic with SEBI in June. The company is eyeing a market capitalisation of over Rs 16,000 crore, just behind India’s largest hospital chain Apollo Hospitals and more than the combined value of two other listed entities Fortis Healthcare and Narayana Health.

A company file its draft prospectus in August to Laurus Labs became the latest healthcare company. Which is Visakhapatnam-based and it makes drug ingredients.

During study and research we found that, OrbiMed-backed hospital chain Kerala Institute of Medical Sciences would plan an IPO by 2017.
For ICICI Venture, this could serve as a booster as it goes about raising the remaining amount in its new fund. The PE firm had made a first close of the new fund at $190 million in April. It logged the first exit activity this year, selling almost all its remaining stake in staffing company TeamLease Services Ltd in August.

As firstly reported in December, it was looking to raise $500 million. It had formally floated the India Advantage Fund Series IV over a year ago and is eyeing as much as $440 million from offshore investors. Although target corpus was not publicly disclosed by the PE firm.

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