On Monday, Krishna Institute of Medical Sciences Ltd (KIMS) filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The offer comprises a fresh issue of up to Rs 200 crore and an offer for sale of up to 21.34 million shares by its promoters and investors. Investors selling shares include General Atlantic Singapore KH PTE Ltd which will sell 13.98 million shares; promoter Bhaskara Rao Bollineni selling 0.77 million shares, and promoter Rajyasri Bollineni sell 1.16 million shares.
The proceeds from the issue will be used to repay Rs 150 crore debt by the company and its arms KHKPL, SIMSPL and KHEPL.
In the nine months ended December 2020, the company posted a revenue of Rs 71.40 crore against Rs 856.38 crore a year ago. Net profit for the same period stood at Rs 145.71 crore against Rs 86.38 crore a year ago.
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 2020, which is 2.2 times more beds than the second largest provider in AP and Telangana.
Kotak Investment Banking, Axis Capital, Credit Suisse, IIFL Securities are the book running lead managers to the issue.