Krishna Institute of Medical Sciences Limited’s Initial Public Offering to open on Wednesday, June 16, 2021

Krishna Institute of Medical Sciences Limited’s Initial Public Offering to open on Wednesday, June 16, 2021

                                                                                                                                    -By Soumili Biswas

Kolkata, 11th June– The Krishna Institute of Medical Sciences is an Indian hospital chain based in states Andhra Pradesh and Telangana. It was founded by Dr. Bhaskar Rao Bollineni in 2000 in the city of Nellore. Currently, the KIMS Group operates nine hospitals across the states of Andhra Pradesh and Telangana.  KIMS Hospitals offers services in Cardiology, Cardiothoracic and Cardiovascular surgery, Dermatology, Dental, Diabetology, ENT, Gastroenterology, Oncology, Nephrology, Obstetrics & Gynaecology, Organ Transplantation, Orthopaedics, Paediatrics, Pulmonology, Plastic Surgery, Rheumatology, Robotics and Urology. A webinar was organised by them on 11th of June, Friday where they discussed about their extended services and the IPO which they will open on Wednesday on 16th of June, 2021.

In the beginning Dr. Bhaskar Rao Bollineni , Managing Director Chairman of KIMS said they have nine multi-speciality hospitals with 3,064 beds. They have affordable quality healthcare, advanced quaternary care while delivering clinical excellence, strong track record of operating and financial performance, and doctor’s active participation.  With 20 plus years of experience, KIMS has a strong understanding of – regional nuances, customer culture, mind-set of medical professionals, growing need for quality and affordable healthcare services. Comparing with other hospitals KIMS has the highest bed capacity across Tier I and tier II Cities in Andhra Pradesh and Telangana. 

According to the CRISIL Report they have 17.82% cardio related surgeries and treatments programs in Andhra Pradesh, 12.55% neurosurgery and poly trauma treatments in Andhra Pradesh, 9.30% nephrology treatments and 9.30% urology surgeries performed in Andhra Pradesh which are higher than other hospitals in Andhra Pradesh.  It has one of the largest neuro science programs for epilepsy among private hospitals in the country. It is considered to be the regional leader in the organ transplantation specialty.

Now they will open the Bid/Offer period in relation to its initial public offering of Equity Shares. The Bid/Offer Period will close on 18th June, 2021. The Price Band of the Offer has been fixed at Rs. 815 to Rs. 825 per equity share. The IPO comprises a fresh issue aggregating up to 2,000 million and an offer for sale of up to 23,560,538 Equity Shares. The Investor selling shareholders- General Atlantic Singapore KH Pt. Ltd comprises up to 16,003,615 Equity shares, Dr. Bhaskara Rao comprises up to 387,966 Equity Shares, up to 775,933 Equity Shares by Rajyasri Bollineni, up to 387,966 shares by Bollineni  Ramanaiah Memorial Hospital Private Limited, collectively are the  Promoter selling shareholders , up to 6,005,058 Equity Shares by persons referred to in Annexure A to the Red Herring Prospectus dated 9th June, 2021, RHP.

The Offer includes a reservation aggregating up to 200 million for subscription by eligible employees of the company which is the Employee Reservation Portion. The Offer also has an employee discount of Rs. 40 on the Offer Price for Eligible Employees Bidding in the Employee Reservation Portion. Here, the Net Offer is the offer which is less for the Employee Reservation Portion. Bids can be made for a minimum of 18 Equity Shares and in multiples of 18 Equity Shares thereafter. The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts Regulation Rules, 1957 as amended read with Regulation 31 of the Securities and Exchange Board of India Regulations, 2018.

The Offer is being made through the Book Building Process in compliance with Regulation 692) of the SEBI ICDR. Regulations which are not less than 75% of the Net Offer will be allotted on a proportionate basis to Qualified Institutional Buyers. The Company’s Board or the IPO Committee, as applicable, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEDI ICDR Regulations of which one-third shall be reserved to domestic Mutual Funds. Further 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBS. If 75% of the Offer cannot be allotted to QIBs, then the entire application money will be refunded forthwith.  15% of the Net Offer shall be available for allocation on a proportionate basis to non-institutional investors and 10% shall be available for allocation to Retail Individual Bidders.

 All potential bidders are required to utilise the Application Supported by Blocked Amount process providing details of their respective ASBA accounts and UPI ID in case of RIBs using the UPI Mechanism. Anchor Investors are not permitted to participate in the Offer through the ASBA process. The Equity Shares offered in this Offer are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited. Kotak Mahindra Capital Company Limited, Axis Capital Limited, Credit Suisse Securities Private Limited and IIFL Securities Limited are the Book Running Lead Managers to the Offer.

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