Krishna Institute of Medical Sciences Ltd (KIMS) launched a qualified institutional placement (QIP) late on Tuesday to raise up to ₹1,500 crore (around $158 million) through a primary issuance of shares, according to a term sheet and placement document reviewed by Mint.
The healthcare provider is offering up to 19.86 million new shares, representing 4.73% of its pre-issue outstanding capital. The indicative placement price is set at ₹755 apiece, a 3.04% discount to the day's closing price of ₹778.65 on the National Stock Exchange. The price also represents a 2.17% discount to the floor price of ₹771.73 a share.
The company will allocate the proceeds for the repayment or prepayment of outstanding borrowings availed by the parent entity and its subsidiaries.
Of the total amount being raised, ₹910 crore is meant to clear the debt of the listed entity, while ₹215 crore will be used for debt clearance in subsidiaries Chalasani Hospitals Pvt., KIMS Hospitals Pvt., and KIMS Hospital Bengaluru Pvt., with the remaining funds allocated to general corporate purposes.
The placement includes a 60-day lock-up agreement for both the company and its promoting shareholders. IIFL Capital and Jefferies India Pvt. Ltd are acting as the book-running lead manager for the QIP.
Pricing for the deal is expected on or around Friday, and listing of the primary shares is likely to happen on or around 25 June.
Currently, promoters hold a 34.11% stake in the company, with public shareholders, including mutual funds and non-institutional investors, making up the remaining 65.89%.
The company operates 26 multi-speciality and super-speciality hospitals under the KIMS Hospitals brand across Telangana, Andhra Pradesh, Maharashtra, Karnataka and Kerala, with an aggregate bed capacity of 8,624 as of 31 March.
KIMS' capital raise through a QIP comes amid a subdued phase for India’s primary markets, where geopolitical strife and macroeconomic uncertainty have triggered volatility and dampened risk appetite. Pressure on the rupee and sustained foreign investor outflows weighed on initial public offering (IPO) activity, prompting several companies to defer or reassess listing plans amid valuation concerns.
Mint reported on 10 June that India's QIP pipeline was set for heavy activity, with listed firms lining up to raise over ₹30,000 crore. These included Premier Energies Ltd, Waaree Energies Ltd, Max Financial Services Ltd, JSW Infrastructure Ltd, AU Small Finance Bank and Sterlite Technologies Ltd.
While QIPs may not fully compensate for a weak IPO market, a pickup in fundraising by listed companies is often seen as a sign of improving market conditions. Investors tend to return first to seasoned, listed stocks before extending their risk appetite to new listings, which makes a strong QIP pipeline an early indicator of broader primary market recovery.