The offer comprises a fresh issue of up to Rs200 crore and an offer for sale of up to 21.34 million shares by its promoters and investors.
Krishna Institute of Medical Sciences Ltd (KIMS) on Monday has filed a draft red herring prospectus with Securities and Exchange Board of India (Sebi) to raise funds through initial public offering (IPO).
The offer comprises a fresh issue of up to Rs200 crore and an offer for sale of up to 21.34 million shares by its promoters and investors. General Atlantic Singapore KH PTE Ltd will sell 13.98 million shares; 0.77 million shares are being sold by promoter Bhaskara Rao Bollineni, and 1.16 million shares by promoter Rajyasri Bollineni.
The proceeds from the issue will be used to repay Rs150 crore debt by the company and its arms KHKPL, SIMSPL and KHEPL.
As of December 2020, its short-term borrowings and long-term borrowings (including current maturity of long-term debt) amounted to Rs261.83 crore on a consolidated basis. The company also said that it has issued corporate guarantees to HDFC Bank and the Federal Bank for term loan of Rs104.75 crore for loans taken by its Subsidiaries.
As of December 2020, KHKPL, SIMSPL and KHEPL had total secured borrowings (current and non-current, including current maturities) of Rs45.15 crore, Rs54.14 crore and Rs16.56 crore, respectively and KHKPL and SIMSPL had total unsecured borrowings (long term and short term) of Rs11.44 crore and Rs9 crore, respectively.
In the nine months ended December 2020, the company posted a revenue of Rs971.40 crore against Rs856.38 crore a year ago. Net profit for the period stood at Rs146.86 crore versus Rs87.33 crore a year ago.
KIMS is one of the largest corporate healthcare groups in AP and Telangana in terms of number of patients treated and treatments offered. It operates nine multi-specialty 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.