KIMS to list on BSE, NSE today. Will grey market listing hold?
Krishna Institute of Medical Sciences (KIMS) will make a debut on BSE and the National Stock Exchange (NSE) on Monday after sailing through its IPO. KIMS successfully raised ₹2,144 crore through its IPO, which included a little over ₹955 crore that was mobilised from anchor investors.
The ₹2,144-crore IPO of KIMS, which opened for subscription during June 16-18, was subscribed 3.86 times at a price band of ₹815-825 per share. The portion meant for qualified institutional buyers (QIBs) was subscribed 5.26 times, that for retail individual investors (RIIs) 2.9 times and non-institutional investors 1.89 times.
IPO Watch data showed KIMS shares were available for trade a premium of ₹110 or at a price of ₹935 in the grey market over the issue price of ₹825.
"KIMS issue looks set to give around 20 to 25 per cent listing gains to the investors. The market sentiments are upbeat after a better-than-expected performance from Shyam Metalics and Sona Comstar," Gaurav Garg, head of research at CapitalVia Global Research told Moneycontrol.
Yash Gupta, Equity Research Associate at Angel Broking, told Moneycontrol he expects KIMS IPO to list at EV/EBITDA of around 20 times or between ₹900 and ₹950.
"Considering soft investors' response to KIMS IPO, allotted investors can expect 7-10 per cent premium on the listing. The muted listing gain seems to be justified as the issue was fully priced in terms of comparison with listed peers' valuations," Prashanth Tapse, VP research at Mehta Equities, said according to Moneycontrol.
KIMS IPO comprised fresh issue of shares aggregating up to ₹200 crore and an offer for sale of up to 2,35,60,538 equity shares from promoters and existing shareholders.
A total of 1,60,03,615 equity shares was offered by General Atlantic Singapore KH Pte Ltd under the offer for sale, up to 3,87,966 equity shares by Dr Bhaskara Rao Bollineni, up to 7,75,933 equity shares by Rajyasri Bollineni, up to 3,87,966 equity shares by Bollineni Ramanaiah Memorial Hospitals and 60,05,058 equity shares by other existing selling shareholders.
Axis Capital, Credit Suisse Securities (India), Kotak Mahindra Capital Company and IIFL Securities were the managers of the offer.
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.