KIMS IPO

IPO Details:

Price Band: 815-825

Cutoff Price: 825

About Company:

KIMS is one of the largest corporate healthcare groups in AP and Telangana in terms of number of patients treated and treatments offered. KIMS provide multi-disciplinary integrated healthcare services, with a focus on primary, secondary & tertiary care in Tier 2-3 cities and primary, secondary, tertiary and quaternary healthcare in Tier 1 cities. It operate 9 multi-specialty 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 AP and Telangana. Company 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.

Competitive Strengths:

1. Regional leadership driven clinical excellence and affordable healthcare;

2. Ability to attract, train and retain high-quality doctors, consultants and medical support staff;

3. Track record of strong operational and financial performance;

4. Well positioned to consolidate in India’s large, unorganized yet rapidly growing and underserved affordable healthcare market;

5. Disciplined approach to acquisitions resulting in successful inorganic growth.

Strategies:

1. Strengthen existing hospitals and specialties;

2. Strategically grow presence in adjacent markets;

3. Implementation of initiatives to improve existing operational efficiencies;

4. Invest in digital health care and technology.

Financial Performance:

Company revenue, net profit and EPS are positive and increasing year on year basis, which is a positive sign. At current EPS, company's PE is 30.87 which seems to be fairly valued.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Repayment/Pre-Payment of the borrowings

2. Offer for Sale

3. General corporate purposes

Competitors Comparison:

KIMS seems to undervalued with less PE.

Grey Market Premium:

Our view: KIM seems to be undervalued, but it has grey market premium of 5% which is very less. I will wait for second day IPO data then only will take a call. As of now, I am avoiding this IPO.

Do visit this blog and the link after 6pm to get updated details on grey market premium and subscription details.

Subscription Details:

Allotment Status:

Listing Status:

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