KIMS IPO: Stock listed at over 20% premium, loses initial gains after soaring to ₹1059 per share

• Shares of Krishna Institute of Medical Sciences surged to ₹1,059 from its price band of ₹815-825 per share post listing.
• Hyderabad-based KIMS is one of the largest healthcare groups operating multi-specialty hospitals in Andhra Pradesh and Telangana.
• The company’s shares had been subscribed 3.86 times on the last day of its subscription.

Shares of Krishna Institute of Medical Sciences (KIMS) made a strong listing on BSE and NSE today as it opened at 23% premium. Moreover, the healthcare groups’ shares soared to ₹1,059 post listing.

The shares of KIMS were trading at ₹978.55 at 10.49 am.

KIMS, which is one of the largest healthcare groups, 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 and child care.

The grey market had hinted at a premium of ₹110 or at a price of ₹935 over the issue price of ₹815-₹825. However, the grey market is not an official measure of the market premium.

The ₹2,144-crore KIMS IPO was subscribed 3.86 times at a price band of ₹815-825 per share.

According to Ventura Securities, KIMS’ strong brand equity, and cluster based expansion in adjacent markets of central India (Indore, Aurangabad, Raipur and Nagpur), Odisha (Bhubaneshwar), Karnataka (Bengaluru and greater Karnataka) and Tamil Nadu (Chennai) will augur well for sustaining high growth with strong profitability. “We expect KIMS to expand the network bed capacity to 3,800 (+1,200 beds) by FY24 through a mix of brownfield and greenfield expansions while incurring a capex of ₹815.8 crore,” the report said.


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