Krishna Institute of Medical Science Ltd IPO Information Note

Krishna Institute of medical science
IPO
by Nikita Bhoota 15/06/2021

Krishna Institute of Medical Science IPO Details

Issue Opens - June 16, 2021

Issue Closes - June 18, 2021

Price Band - ₹ 815-825

Face Value - ₹10

Issue Size - ~₹2,144 cr (at upper price band)

Bid Lot - 18 Equity Shares

Issue Type - 100% Book building

% Shareholding

Pre-offer

Promoter Group

46.81

Public

53.19

Total

100%

 

 

 

 

 

 

Source: RHP

 

Company Background

Krishna Institute of Medical Science Ltd. (KIMS) provides 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. The company operates 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.

For additional information and risk factors please refer to the Red Herring Prospectus. Please note that this document is for information purpose only.

The 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.

 

Object of the Offer

The IPO offer comprises of a fresh issue and an offer for sale. Out of the fresh issue component of Rs.200cr., Rs.150cr. is proposed to be utilized towards repayment/prepayment of certain debt availed by the company and its subsidiaries and the balance amount is attributable to general corporate purposes.

Read Now: Upcoming IPOs in 2021

Financials 

Particulars (Rs Cr)

FY19

FY20

FY21

Revenue from Operations

918

1,123

1,330

Adj. EBITDA

174

251

381

Adj. EBITDA Margin (%)

18.8

22.2

28.4

PAT

-49

115

205

ROE (%)

-8.8

19.9

23.3

Adj. Net Debt to Equity (x)

0.49

0.46

0.25

Source: RHP

Competitive Strengths:

Track record of strong operational and financial performance

The company has grown from a single, approximately 200-bed hospital at Nellore (AP) in year 2000 to a leading multi-disciplinary integrated private healthcare service provider with nine multi-specialty hospitals and over 3,000 beds today. The company has consistently delivered strong operational and financial performance through strong patient volumes, cost efficiency and diversified revenue streams across medical specialties. The company has achieved healthy profitability in both Tier 1 and Tier 2-3 markets by identifying markets with significant under-served healthcare demand and delivering quality healthcare services at affordable prices, which in turn drives patient volumes. Their hospitals in Tier 1 markets provide higher margin services such as organ transplants, oncology and neuro-critical care, resulting in higher average revenue per operating bed (ARPOB) and EBITDA. The company’s multispecialty healthcare platform has resulted in diversified revenue streams, with no single specialty accounting for more than 25% of the total income in any of the last three years. As of March 31, 2021, the debt-to-EBITDA ratio was 0.71x and the gearing ratio was 0.31x. The company has achieved strong free cash flow levels, in terms of the cash flows from operations relative to the capital expenditures. The company is one of only three hospitals in India that are rated AA by CRISIL

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

The healthcare industry in India is poised for growth. The Indian healthcare delivery industry is expected to grow at a 17-18% CAGR (2020 - 2024E) and reach ₹7.07 trillion by 2024, according to the CRISIL Report. In Fiscal Year 2020, 68% of hospital treatments, in terms of the treatment value, were carried out in private hospitals, and the number is expected to reach 72% in Fiscal Year 2024, according to the CRISIL Report.

There is a significant and growing need for quality and affordable healthcare services across the country, particularly in AP and Telangana where the company’s hospital network is concentrated. AP and Telangana ranked among the top three in terms of overall health index score, according to the CRISIL Report. AP is also a leading state in terms of doctors per person in 2018 and has been attracting doctors and patients seeking treatments, according to CRISIL report. Health insurance penetration in India stood at only 37% as of March 31, 2018, while AP and Telangana also stand as one of the underpenetrated states in terms of health insurance, with a penetration rate of 4% and 12%, respectively, in Fiscal Year 2020. The government backed schemes in AP and Telangana will also help to set the stage for future growth.

Disciplined approach to acquisitions resulting in successful inorganic growth

The company has a successful history of sourcing, executing and integrating acquisitions. It has a disciplined and low-leverage approach to acquisitions that has enabled them to maintain their affordable pricing model, as they have grown in both tier I and II-III markets. Since Fiscal Year 2017, the company has expanded their hospital network primarily through acquisitions of other hospitals. In Fiscal Year 2017, they have acquired hospital in Ongole (AP), a 350-bed multispecialty hospital founded by local doctors, through a slump sale by Ongole Arogya Hospitals Private Limited. The company further expanded its hospital network to add KIMS Vizag, a 434-bed multispecialty hospital in April 2018 by entering into a service agreement. In addition, it acquired a 250-bed hospital in Anantapur (AP) in October 2018 and a 200-bed hospital in Kurnool (AP) in April 2019, which solidified their presence in southern AP and adjoining areas of Karnataka.

 

Key Risk Factor:

  • The company is highly dependent on their healthcare professionals, including doctors that are engaged on a consultancy basis.
  • Their revenues are highly dependent on the hospitals in Hyderabad (Telangana). There is also significant dependence on certain specialties for a majority of the revenues.
  • Any adverse impact on the title or ownership rights of the owner or breach of the terms or nonrenewal of the license agreement may lead to disruptions and affect the business operations of the company.

* For complete list of risk factors kindly refer to the Sona Comstar Red Herring Prospectus.

See Detail video of Krishna Institute of Medical Sciences :

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

Next Article

Will DHFL Shares Be Delisted After Being Acquired by the Piramal Group?

DFHL stock latest news
by Nikita Bhoota 21/06/2021

Since 18 May, the shares of DHFL, which is undergoing insolvency proceedings at the National Company Law Tribunal (NCLT), have been rising consistently.  In June alone, the stock rose 27% after rallying 17% in May.  However, the rally faded away, with the stock hitting the lower circuit in recent trades.

How is Piramal going to acquire DHFL?

Piramal Capital and Housing Finance Ltd has offered ₹37,250 crore to DHFL’s creditors, including a payment of ₹12,700 crore in cash upfront, ₹3,000 crore in interest income on DHFL’s books, and non-convertible debentures worth ₹19,550 crore to be repaid over 10 years.

What does the DHFL deal hold for Piramal? 

The acquisition is a step towards the demerger of the group’s financial services and pharmaceuticals businesses, according to market experts. On the business side, the proposed acquisition will also help Piramal Capital and Housing Finance diversify its loan book into the retail segment and improve the mix between wholesale and retail. 

DHFL shares will be delisted?

From 14th June 2021, the investors are not able to trade in DHFL's shares on BSE & NSE. The Bombay Stock Exchange & National Stock Exchange suspended trading of DHFL Shares.

Investors to move SC against plan to delist DHFL shares?

A section of retail investors of Dewan Housing Finance Corp. Ltd (DHFL) plan to approach the Supreme Court against a move by the National Company Law Tribunal (NCLT) to allow delisting of the mortgage lender’s shares as part of its resolution plan.

Detailed Video:

Disclaimer: The above report is compiled from information available on the public platforms.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

Next Article

Power Grid Corporation Share Q4 Results FY21- Dividend & Bonus

Power Grid share latest news
by Nikita Bhoota 21/06/2021

Power Grid Corporation Ltd reported a 3.57% YoY fall in consolidated net revenues for the Mar-21 quarter at Rs10,510cr. On a sequential basis, net sales revenues were up 3.63% compared to total revenues in the Dec-20 quarter at Rs10,142cr.

Full-year revenues for FY21 were 5.02% higher at Rs39,640cr. In terms of verticals, the major transmission vertical saw 2.7% growth YoY while the consultancy and telecom verticals reported flat revenues. Debt equity lowered in the quarter leading to interest coverage improving from 3.79 to 4.26

Net profits in the Mar-21 were up 6.42% at Rs322.22cr due to a sharp cut in finance charges and other expenses. 

Net margins at 33.55% in the Mar-21 quarter was better than 32.65% in the Mar-20 quarter and 33.20% in the sequential Dec-20 quarter. 

Power Grid declared a final dividend of Rs.3 per share taking the total dividend for FY21 to Rs.12 per share. The final dividend would be paid within 30 days from the date of its declaration at the AGM.

The board has also recommended the issue of bonus shares in the ratio of 3:1 one new equity bonus share of Rs 10 each for every three existing equity shares of Rs 10 each fully paid-up, subject to the shareholders' approval.

The date on which such bonus shares shall be credited or dispatched will be informed to the stock exchanges in due course.

Disclaimer: The above report is compiled from information available on public platforms.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

Next Article

PNB Housing shares fall 5% as SEBI halts Carlyle deal

PNB housing finance share latest news
by Nikita Bhoota 21/06/2021

PNB Housing Finance share hits lower circuit on Monday after the Securities Exchange board of India (SEBI) restrained PNB Housing Finance to go ahead with shareholders’ approval on the proposed Rs 4, 000 crore deal with Caryle Group and directed the company to carry out the valuation process as per the relevant legal provisions.

As per SEBI, the resolution regarding the deal, which was to be put for shareholders' vote on June 22, was "ultra-vires" of the company's Articles of Association (AoA).

The transaction, which has come under the lens of Sebi and Reserve Bank of India (RBI) following concerns raised in certain quarters, including by a proxy advisory firm, would eventually see private equity major Carlyle group taking control of PNB Housing Finance, which is a subsidiary of Punjab National Bank.

The company's meeting is scheduled for Tuesday (June 22) to take up the matter for approval of the shareholders.

The company, promoted by PNB, said it had received the letter from Sebi on June 18, 2021, calling upon the company to comply with the legal provisions in the matter.

Proxy advisory firm Stakeholders Empowerment Services (SES), in its report, has raised a number of questions on the proposed deal, wondering if Punjab National Bank (PNB) has willingly surrendered control without extracting a fair compensation.

Details of the Proposed Deal:

Under the proposed deal, Rs 3,200 crore is to be raised through equity shares and Rs 800 crore by issuance of warrants.

A total of 8.21 lakh equity shares and 2.05 lakh warrants are to be issued at an issue price of Rs 390 per share/warrant to Pluto Investments S.a.r.l (Pluto) (Carlyle Group); Salisbury Investments (person acting in concert with Carlyle); General Atlantic Singapore Fund FII Pte Ltd and Alpha Investments V Pte Ltd.

Salisbury Investments is the family investment vehicle of former HDFC Bank CEO Aditya Puri, who is also a senior advisor for Carlyle in Asia.

Will Promoters Change?
As per the proposal, the deal will change the control of PNB Housing Finance -- from PNB being the sole promoter of the company to a joint control holder with Carlyle Group.

With this, PNB's stake in the company will come down to 20.28% from the existing 32.64%, while that of Carlyle will rise to 50.16% from 32.21%.

PNB Housing Finance and SAT:
PNB Housing Finance Limited said in the regulatory filing on Monday that it has filed an appeal before the Securities Appellate Tribunal (SAT) against the letter issued by the Securities and Exchange Board of India on June 18, 2021.
Stock Impact:

The stock is currently trading at Rs702.40, down by Rs36.95 or 5% from its previous closing of Rs739.35 on the BSE. The scrip opened at Rs702.40 and has touched a high and low of Rs702.40 and Rs702.40 respectively.

Detailed Video:

Disclaimer: The above report is compiled from information available on the public platforms.
About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

Next Article

Centrum Group to Takeover PMC Bank

PMC Bank
by Nikita Bhoota 21/06/2021

Diversified financial services player Centrum Group on Friday said it has received in-principle approval from the Reserve Bank of India (RBI) to take over the troubled cooperative lender PMC Bank and re-launch it as a small finance bank.

RBI Actions:
The PMC Bank had invited Expression of Interest (EoI) from eligible investors for investment/ equity participation for its reconstruction and had received four proposals.

In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL.

The restrictions have been extended several times since then. PMC's exposure to HDIL was over ₹6,500 crore or 73 percent of its total loan book size of ₹8,880 crores as of September 19, 2019.

Initially, the RBI had allowed depositors to withdraw ₹1,000 which was later raised to ₹1 lakh per account to mitigate their difficulties.

In June 2020, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.

As of March 31, 2020, PMC Bank's total deposits stood at ₹10,727.12 crore and total advances at ₹4,472.78 crore. Gross non-performance assets of the bank stood at ₹3,518.89 crore at end-March, 2020.

Centrum Group Management Commentary:
Decision making at the new small finance bank equally promoted by Centrum Group and BharatPe will be determined by only those who are best suited to take those decisions, said Jaspal Bindra, executive chairman,

Centrum Group.
Centrum Group will take the charge in regulatory relations, lending, strategy and building the core business of the small finance bank. BharatPe will lead decision making on the technology side, including development of new digital-only products, as well as customer acquisition. 

Another area where BharatPe can help is in capital raising for the bank, since they have managed to raise good quality capital at an attractive valuation over the last three years.

The small finance bank is expected to be operational in less than 120 days, Bindra said.

To start with, the small finance bank aims to have a capital base of Rs 500 crore, against the regulatory requirement of Rs 200 crore. Equity capital will contributed equally by both promoters. Another Rs 400 crore in capital will be provided over the course of the first year of the bank's existence. "We (Centrum and BharatPe) have accounted for another Rs 900 crore to be infused into the bank aft fter the first year, depending on the kind of business growth we see," Bindra said. Centrum Financial Services' loan portfolio of about Rs 1,000 crore will be brought in to the small finance bank, as part of the process, he added.

So will the PMC depositors get their money back?Although the RBI has paved the way for a joint venture of Centrum and BharatPe to take over the troubled PMC Bank, the central bank has not come out with the details of the proposed acquisition of PMC Bank.

Disclaimer: The above report is compiled from information available on the public platforms.
 

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

Next Article

No Increase in Property Tax in Mumbai

property tax
by Nikita Bhoota 21/06/2021

Mumbai Mayor, Kishori Pednekar said there will be no hike in Property tax in Mumbai till the Covid situation continues. 

The development came after the Brihanmumbai Municipal Corporation (BMC) proposed a hike in property tax. The mayor rejected the proposal saying that the people are already facing financial hardships due to the Covid-induced lockdowns, according to media reports.

The BMC’s assessor and collector department tabled the proposal earlier this week, to be effective from April 1, 2021 to March 31, 2025, before the Standing Committee for final approval. The property tax rate was proposed to go up to 14%, as per the media reports.

The corporation has proposed to increase the property tax based on ready reckoner rates as on April 1, 2021. Ready reckoner rates help to calculate true market value of immovable property like land, residential, commercial industrial. It is one of the factors to calculate property tax

Last year too, the state cabinet decided to not go for property-value assessment, leading to no revision in property tax during the financial year. A hike of around 17 percent was expected last year.

Stocks Performance:
Nifty50 is up only 0.21% or 32.40 points. Whereas, Nifty Realty index gained 349 points or 1.53% (updated at 2:13 pm)

Symbol

LTP

% Change

 
 

NIFTY REALTY

349.10

1.53

 

HEMIPROP

145.50

4.00

 

PRESTIGE

290.60

3.03

 

BRIGADE

283.05

2.85

 

GODREJPROP

1,408.00

1.51

 

DLF

299.05

1.42

 

IBREALEST

109.50

1.30

 

PHOENIXLTD

809.40

1.25

 

SOBHA

503.25

0.79

 

OBEROIRLTY

620.00

0.43

 

SUNTECK

288.80

-0.07

 

Source: NSE

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.