The Krishna Institute of Medical Sciences Ltd. (KIMS) #IPO Thread
#IPOTracker
1/ IPO Details
Date of Offer: 16th June-18th June
Price Band: INR 815-825
Min. Order Qty: 18 Shares
Fresh Issue: INR 200 Cr
Offer for Sale: INR 1944 Cr
2/ Company Details
KIMS is one of the largest healthcare groups in Andhra Pradesh and Telangana in terms of number of patients treated.
KIMS has expanded its hospital network in recent years through acquisition of hospitals in 4 cities
1/3 beds launched in past 4 yrs
3/ Operational Highlights
Operates 9 multi-specialty hospitals under 'KIMS Hospitals' brand
Aggregate bed capacity 3064
Expected to rise to 3800 by FY24
Out-Patient department CAGR -3.96% (FY19-21) due to Covid
This decrease was offset by inpatient CAGR 2.31%
Bed Occupancy 78.6%
4/ Financials
Revenue CAGR 20.4% (FY18-21)
PAT CAGR 105.2%
EBITDA CAGR 114%
Average revenue per occupied bed INR 20609
Utilization of IPO proceeds to pay off debt will help in path towards becoming net debt free
5/ Sector Outlook
Hospital and healthcare service industry is estimated at INR4.3 trillion
Anticipated to grow 17-18% for 4 years
PMJAY expected to increase affordability
Govt introduced INR15000 Cr package for Covid to boost industry
Growth of Medical tourism
6/ Peer Comparison
The company faces stiff competition in the markets
Its primary competitors are Apollo Hospitals, Narayana Hrudayalaya, Shalby, Fortis & Max Healthcare
7/ Promoter & Major Shareholder Details
The promoters of the company, The Bollineni family had 46.81%
General Atlantic Singapore KH Pte. Ltd., largest shareholder of the company (40.91%) is a leading global growth investor providing strategic support to high-growth companies
8/ Strengths
The co has had consistent growth in Revenue with decent profitability
The co has diverse offerings across specialties
KIMS' clinical excellence and affordable healthcare gives it an advantage on peers
KIMS has diversified revenue streams in terms of specialities
9/ Risk Factors
2 hospitals in Hyderabad contributed to 64% of Revenue
Regional concentration exposes co. to economic & political situations
Top 20 Doctors contributed 21.8% of Revenue & Top 25 doctors contributed 36.1%
Covid reduced bed occupancy rate
Capital intensive ops
10/Future Outlook
Plans to expand in adjacent states including Karnataka, Orissa, Tamil Nadu
Exploring Asset lite models of expansion without ownership of assets
Increased clinical team for organ transplantations
Undertaking initiatives to improve daily ARPOB and minimize ALOS
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