KIMS

Krishna Institute of Medical Sciences or KIMS was another new listing today. As against the IPO price of Rs.825, the stock got listed at Rs.1008.90, a premium of over 22%.

The IPO was subscribed 3.86 times, with the QIBs portion getting 5.26 times subscription, NIIs was 1.89% and Retail investors was 2.90 times.

In our New Issue Analysis, we had sad that hospital stocks have hardly created investor wealth, with Shalby, Aster, Healthcare Global still ruling below IPO price even after 3 years. Moreover, valuation of entire healthcare sector comprising diagnostic chains, hospitals, pharmaceutical manufacturers, sky rocketed during covid and now appears to have run ahead of fundamentals, leading to an overall cautious view.

We had concluded, “Sustaining the profitable growth in future appears challenging for a regional hospital chain like KIMS. Fully priced issue after a positive covid impact does not leave much on the table for prospective investors.”