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KIMS IPO Review 2021: Important Dates and details, Today's GMP

 Since the Covid 19 came India's healthcare industry is collapsed due to poor infrastructure while the pharma sector is on boom. But, at one time it was such that healthcare industry is giving 22% CAGR growth in India since 2016 and it is being expected that this industry will be worth Rs 370 Billion in near future. 


Kims IPO logo
Source : ipowatch.in


KIMS IPO opens on 16th June and closed on 18th June, 2021. The company is planning to collect Rs 2,143.74 crores which comprises fresh issue of equity shares worth of Rs 200 crores and offer for sale (OFS) of Rs 1,943.74 crores.

In this article we cover all the important information related to the company and IPO, also we have covered the Grey market premium (GMP) for the shares of last one week. 


🖥 Table of  Contents:

KIMS IPO Review 2021-

  1. About Company:
  2. Fundamentals of the Company:
  3. Strengths:
  4. Threats:
  5. Important Dates and Details:
  6. Objective of Issue:
  7. Grey Market Premium (GMP):

About Comapany:

Krishna Institute of Medical Sciences Ltd was incorporated in the year 1973. The first KIMS hospital was started by Dr B Bhaskar Rao in 2000. The institute is the largest healthcare organizations in Andhra Pradesh and Telangana. 

The company offers a number of services such as Cardiac Science, Dental Science, Heart and Lungs transplantation, Gastroenterology and Hematology, Neuro science,organ transplantation, orthopedic science, renal sciences, reproductive sciences and robotic sciences etc. 

The compan is running 9 multi- specialty hospital under the brand name of 'KIMS Hospital' with an aggregate bed capacity of 3,064 in which 2000 are operational beds as per data of March 31, 2021. 


 Fundamentals of the Company:

You can get an idea of the company's financial performance from the table given below:

Particulars31-Mar-
2021
31-Mar-
2020
31-Mar-
2019
Total Assets14,163.5411,958.9011,197.13
Total Revenue13,401.0311,287.289238.69
Profit After
Tax
2,054.791,150.72(488.07)


You can see that company's assets are increasing yoy basis which is the sign of company's management is working on expansion of business. The revenue of the company is also increasing yoy basis. 

As you can see in the above table the company have recorded loss of -488.07 crores in March 2019 then how it turns into profit of 1,150.72 crores in next years? 

The answer is that due to huge debt while increase revenue of the company, company is suffering from losses. The has given shareholding to its lenders due to which the company's losses are turns into profit. 

The net profit margin of the company for last 3 years are -5.4%, 10.1% and 15.3% respectively. Where as EPS are -6.9, 15.87 and 26.42% respectively. The debt to equity ratio is 0.64 for 2021. The Return on Equity (ROE) for last three years are -8. 84%, 19.93% and 23.30% respectively. 

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 Strengths:

  • The company is the largest healthcare service group in Andhra Pradesh and Telangana. 
  • The company has well qualified, professionally trained and experienced doctors and medical support staff. 
  • The company is promoting to adoption of new technologies. 
  • The company is started the robotic surgeries in some of the their hospitals.
  • The company have reduced its debt in last three years. 
  • The company have experienced board which can tackle the any kind of tough situations.

 Threats:

  • The company have to face peer competition from other existing healthcare companies such as Apollo Hospital Enterprise, Fortis Healthcare Limited, Narayana Limited, Max Healthcare Limited etc. 
  • The company have huge debt and to repay this debt company is going to list of stock exchange. 

 Important Dates and Details:

KIMS IPO Dates and Details:

Opening Date June 16, 2021
Closing DateJune 18, 2021
Issue TypeBook built issue
Face ValueRs 10 each
Market Lot18 shares
IPO PriceRs 815 to Rs 825
Listing atBSE, NSE
Issue value [.] Eq shares of Rs 10
( Aggregating up to Rs 2,143.74 crores)
Fresh issue[.] Eq shares of Rs 10 each
(Aggregating up to Rs 200 crores)
Offer for sale[.] Eq shares of Rs 10
(Aggregating up to Rs 1,943.74 crores)

Tentative Timetable:

Opening DateJun 16, 2021
Closing DateJun 18, 2021
Basis of AllotmentJun 23, 2021
Initiation of RefundJun 24, 2021
Credit of shares in Demat accountJun 25, 2021
Listing DateJun 28, 2021



 Objective Of Issue:

The fund which company is raising is utilized for following purpose:

  • Repayment/ prepayment of debts of the company either fully or partially. 
  • For General corporate purpose. 

 Grey Market Premium (GMP):


The GMP of the company share gives an idea about the listing price of the shares whether it list on discount or on premium. The GMP Of Sona Comstar IPO is in fluctuating manner. The GMP of the company for past one week are :

KIms IPO GMP
Source: ipowatch.in

The expected return is 10% from KIMS IPO. You can check today's grey market premium on ipowatch.in.


Closing Thought:


As we have seen the grey market premium of the company is Rs 120 on 14th June and in last six days it is zero. We have to wait till second day of IPO if the premium is increased or consolidated at same price then you can apply for listing gain or you can go for Dodla Dairy IPO which GMP is Rs 180 on 14 th June. 

We hope you like this article. If you have any query write in comment box we will reply you as soon as possible. Also, write in which IPO you are going to apply. 


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