KIMS Shares Make Strong Debut Listing at a 22% Premium

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jun 28, 2021 - KIMS Shares Make Strong Debut Listing at a 22% Premium

KIMS Shares Make Strong Debut Listing at a 22% Premium

Jun 28, 2021

Shares of Krishna Institute of Medical Sciences (KIMS) made a strong debut on the stock exchanges today.

Shares listed at Rs 1,008.90 on the BSE, a 22.29% premium over its issue price of Rs 825. On the NSE, the stock listed at Rs 1,009, up 22.30% from issue price.

Post listing, KIMS shares soared to Rs 1,059.

However, shares of the company pared some of its gains to end at Rs 996.

The company now commands a marketcap of Rs 79.7 bn.

KIMS IPO gets Ashish Kacholia interested

Renowned investor Ashish Kacholia had placed an application for over 2 m shares, worth about Rs 1.8 bn in the initial public offer (IPO) of KIMS Hospitals.

Ashish Kacholia is known for his bets on mid-cap and small-cap stocks.

Birlasoft, Mastek, Poly Medicure, Apollo Tricoat Tubes, Phillips Carbon, and Caplin Point are some of his top holdings.

The Rs 21.4 bn IPO was open for subscription between 16 June and 18 June. This included a little over Rs 9.6 bn, that was mobilised from anchor investors.

--- Advertisement ---
Govt's 257 Bn Rupees Boost for EVs- Your Chance for Potentially Wild Profits

A few days back, the government announced that it will be pumping a whopping 257 billion rupees into electric vehicle initiatives by 2025.

We urge you to become a part of the EV gold rush that's happening now and gain the early mover advantage.

We have closed in on 3 EV stocks which could potentially hand you over insane profits in the long run.

We will be revealing all the details in one of our upcoming special online event.

Sign Me Up For the FREE Event

The IPO saw strong response as the offer received bids for 55,655,046 shares compared with 14,413,073 shares on offer.

The quota reserved for qualified institutional buyers (QIBs) was subscribed 5.26 times while the one for non-institutional investors received 1.89 times bids.

Retail investors also showed strong participation as the quota reserved for them was subscribed to 2.89 times.

Grey market premium holds

Ahead of its listing, KIMS shares were trading at a premium of Rs 110 or at a price of Rs 935 in the grey market.

Shares were expected to list at premium to its issue price given the strong response seen from investors.

The strong listing can be attributed to a decent performance last week by Shyam Metalics and Sona Comstar.

Last week, Shyam Metalics listed at Rs 380, a 24.2% premium over its issue price of Rs 306.

Meanwhile, Sona BLW Precision Forgings listed at Rs 302.4, a 3.9% premium to issue price of Rs 291 per share. Later in the day, shares of the company were locked in the 20% upper circuit on the back of strong demand.

On top of all this, market sentiment also had a role to play. Benchmark indices BSE Sensex and NSE Nifty opened at record highs today before paring gains.

Indian share markets rose to record highs tracking the positive US stock markets and mixed Asian shares.

Market experts are suggesting KIMS shareholders to hold the stock, showing emphasis on the company's financials and the fact that HNI and mutual fund houses are expected to buy stake in the company from the secondary market.

Covid Impact

Despite a surge in topline and bottomline, KIMS said that the Covid-19 pandemic had an adverse impact on its operations.

In March 2020 and more so in April 2020, it witnessed a substantial decline in in-patient and out-patient volumes.

FREE Event: The Great Indian Wealth Project

When compared to February 2020, its inpatient volumes fell by more than half in April 2020.

This was because some patients were reluctant to visit hospitals due to a perceived notion of increased risk of infection.

Further, the dependence of KIMS on hospitals in Hyderabad is also a concern.

The company also competes with strong peers such as Apollo Hospitals, Fortis Healthcare, and Aster DM Healthcare, among others.

About Krishna Institute of Medical Sciences

Incorporated in 1973, Krishna Institute of Medical Sciences (KIMS) is one of the largest healthcare groups in Andhra Pradesh and Telangana.

KIMS provides multi-disciplinary healthcare services with a key focus on primary, secondary, and tertiary care in tier 2-3 cities.

--- Advertisement ---
What CNBC Won't Tell You...

The next 10 years would be a golden period for Indian investors...

The "Big Bull" Rakesh Jhunjhunwala claims it could be one of the largest stock market bull runs in India ever...

And veteran investor Raamdeo Agarwal says the S&P BSE Sensex could even reach 200,000 points in the next 10 years... All thanks to these...

Highly Powerful Wealth-Building Mega-Trends

The company offers a comprehensive range of healthcare services including oncology, cardiac sciences, neurosciences, gastric sciences, orthopedics, renal sciences, organ transplantation, and mother & child care.

As of 31 March 2021, it operates through 9 multi-specialty hospitals under the brand name of 'KIMS Hospitals' with an aggregate bed capacity of 3,064 including over 2,500 operational beds.

After the listing of KIMS shares at BSE and NSE, promoters' holding in the company now stands at 38.84%, which was at 46.81% before the issue listing.

It remains to be seen how the stock performs going forward.

For a sector overview, read our pharmaceuticals sector report.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "KIMS Shares Make Strong Debut Listing at a 22% Premium". Click here!


More Views on News

5 Stocks to Watch Out for Amid the Omicron Outbreak (Views On News)

Dec 3, 2021

As the new variant of Covid-19 emerges, keep an eye on these stocks.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6% (Views On News)

Sep 30, 2021

The divestment of 6.6% stake by the promoter is considered to be one of the largest block deals of the market.

More Views on News

Most Popular

A Complete Guide for Beginners on How to Invest in IPOs

As an investor, you must have endeavoured to find a suitable opportunity for investing in IPOs. But do you know what is an IP...

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)