Among the four companies from different sectors hitting the primary market this week with the aim to raise Rs9,123 crore, the initial public offering (IPO) of Krishna Institute of Medical Sciences Ltd (KIMS) is set to open on Wednesday i.e., June 16th. The issue will close on June 18. The price band for its public offering has been fixed at Rs815-825 per share. Along with KIMS, Dodla Dairy IPO is also going to open on 16th June 2021.

Things to know before subscribing:

IPO date: The firm’s IPO will open on 16 June and close on 18 June.

IPO price band: Krishna Institute of Medical Sciences Ltd has fixed a price band for its initial public offering (IPO) at Rs815-825 per share.

What is grey market signalling: ''We have seen a huge volatility in Grey market premium of all the four IPOs of this week, KIMS IPO which will going to open tomorrow i.e. 16th June 2021, in last 3 days stock Grey market premium has increased from 0 to Rs140 and then came back to Rs40- Rs70 as per the different market news. Yesterday we saw a volatile day in the stock market. It may be due to the fact that KIMS GMP has come down yesterday, but we expect the IPO to give some good listing gain to short term investors,'' Yash Gupta Equity Research Associate, Angel Broking said.

IPO size: The IPO size is Rs2,144 crore out of which fresh issue is Rs200 crores and offer for sale by promoter group is Rs1,944 crore (2.35 crores shares), with IPO price band of Rs815- Rs825. Investors can bid for a minimum of 18 shares and in multiples of 18 thereafter.

OFS: The OFS (offer for sale) comprises sale of upto 16 million shares by General Atlantic Singapore KH PTE, upto 3.88 lakh shares each by Dr Bhaskara Rao Bollineni and Bollineni Ramanaiah Memorial Hospital and upto 7.75 lakh shares by Rajyasri Bollineni.

Proceeds: The proceeds from the fresh issue will be used to repay debt of the company and its subsidiaries.

About the company: Krishna Institute of Medical Sciences (KIMS) is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of the number of patients treated and treatments offered.

It operates nine multi-specialty hospitals under the 'KIMS Hospitals' brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of December 31, 2020.

In Fiscal Year 2021, its nine hospitals recorded ARPOB (Average Revenue Per Operating Bed) of Rs20,609, a bed occupancy rate of 78.60%, and an ALOS (Average of length of stay) of 5.53 days, on an aggregate basis. In Fiscal Year 2021, ARPOB for the hospitals situated in Tier 1 cities was Rs39,571 and ARPOB for the hospitals situated in Tier 2-3 cities was Rs11,187.

Should you subscribe? ''The company has a very healthy balance sheet with negative Net Debt/ Equity. We believe that the upcoming expansion plan in Bangalore & Chennai can be funded through internal accruals and minimum amount of debt. We are assigning a “Subscribe" recommendation to the issue,’’ Angel Broking said in a note.

Outlook and valuations: ''FY-2021PE of 31.2x and EV/EBITDA of 17.8x, at upper end of the IPO price band is slightly better than the peer companies. Similarly, the company has one of the best ROE & ROCE of 23.8% and 24.8% respectively,'' Angel Broking said in a note.