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ICICI Venture-backed KIMS Hospitals, road builder Patel Infra get SEBI nod for IPO

13 March, 2018

Super-speciality hospital chain Krishna Institute of Medical Sciences Ltd (KIMS) and road construction company Patel Infrastructure Ltd have received regulatory nod to float initial public offerings.

Vadodara-based Patel Infra received approval of the Securities and Exchange Board of India on 5 March. KIMS Hospitals, which counts private equity firm ICICI Venture as its backer, received SEBI clearance on 7 March. With this, nine companies have received SEBI clearances on IPOs this calendar year.

As many as 46 firms had received clearance for IPOs in 2017, according to SEBI’s website.

KIMS had filed its draft red herring prospectus with SEBI on 11 December last year.

The hospital chain will issue fresh shares worth Rs 50 crore while ICICI Venture will sell 15.04 million shares, or a little more than two-thirds of the 21.47 million shares it holds. The company’s promoters are also selling shares.

The IPO’s total estimated size is Rs 650 crore ($100.9 million), said two persons aware of the company’s plans.

Axis Capital, Edelweiss Financial Services and ICICI Securities are the merchant bankers managing the IPO.

KIMS will join a number of healthcare companies that have gone public in the past three years.

Aster DM Healthcare was the latest healthcare company to go public. It raised Rs 725 crore from its IPO last month.

Ahmedabad-based Shalby Hospitals raised Rs 504 crore via its public offering in December 2017.

Bengaluru-based hospital chain Narayana Healthcare floated its IPO in December 2015 and oncology chain HealthCare Global Enterprises Ltd went public in March 2016.

Within the broader pharmaceutical and healthcare sector, Biocon Ltd’s contract research services arm Syngene International Ltd had gone public in July 2015.

Drugmaker Alkem Laboratories Ltd tapped into the primary markets in December 2015, followed by Warburg Pincus-backed Laurus Labs in November 2016 and Eris Lifesciences in June 2017.

KIMS operates a chain of multispecialty hospitals with a focus on tertiary and quaternary healthcare. Its first hospital was set up in 2000. The company now operates six hospitals in Andhra Pradesh and Telangana states. It had a total capacity of 2,120 beds, including 1,705 operational beds, as on 30 September 2017.

KIMS reported a consolidated net profit of Rs 17.81 crore for the six months through September 2017 on revenue from operations of Rs 327.76 crore. It posted a net profit of Rs 32.55 crore on revenue of Rs 567.13 crore for 2016-17.

Patel Infra
The construction company had filed its draft prospectus on 10 January.

It will join will join a number of infrastructure companies that have gone public in the past two to three years.

BanyanTree-backed Dilip Buildcon went public in August 2016 with a Rs 625 crore public issue, while Bharat Road Networks Ltd went public last September by raising Rs 600 crore.

Other infrastructure and construction companies that went public include PSP Projects Ltd, Shankara Building Projects Ltd, Sadbhav Infrastructure Project Ltd, PNC Infratech Ltd and MEP Infrastructure Developers Ltd.

Delhi-based GR Infraprojects Ltd, which is backed by Motilal Oswal Private Equity, is also planning to go public.

Patel Infra has proposed to sell fresh shares worth Rs 400 crore in the IPO, according to its draft prospectus.

It plans to use Rs 161.47 crore of the net proceeds to partially finance the Cholopuram-Thanjavur highway project. The company will use Rs 45 crore to purchase construction equipment, Rs 100 crore to fund incremental working capital requirements, besides using Rs 25 crore towards repayment and prepayment of debt.

SBI Capital Markets and IIFL Holdings are the merchant bankers managing the IPO.

The company, formerly Patel Infrastructure Pvt Ltd, was incorporated in April 2004. It builds and maintains road projects across India.

Patel Infra reported a consolidated net profit of Rs 47.97 crore for the first half of 2017 on operating revenue of Rs 799.40 crore.

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ICICI Venture-backed KIMS Hospitals, road builder Patel Infra get SEBI nod for IPO

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