Seasoned investor Ashish Kacholia, known for his ability to pick quality midcap and smallcap, had placed an application for over two million shares worth about Rs 180 crore in the initial public offering. The Rs 2,144 crore IPO was sold between June 16 and 18. It received bids for 5,56,55,046 shares compared with 1,44,13,073 shares on offer. The quota reserved for qualified institutional buyers(QIBs) was subscribed 5.26 times, the one for non-institutional investors received 1.89 times bids while the quota reserved for retail individual investors (RIIs) was subscribed to 2.89 times.
At the upper end of the Rs 815-825 price band, the IPO sought a PE multiple of 31.2 times and EV/Ebitda of 17.8 times on an FY21 basis. Ventura Securities values the stock at Rs 1,275, based on 17 times FY24 EV/Ebitda. The target represents an upside of 55 per cent from the IPO price of Rs 825 per share over the next 24 months.
Ajit Mishra, VP-Research at Broking, said the domestic healthcare industry is expected to grow 17-18 per cent annually to Rs 7.1 lakh crore by FY24. This would be led by renewed impetus on Pradhan Mantri Jan Arogya Yojana (PMJAY). Also, changing demographics, increasing health awareness, medical tourism, health insurance coverage and rising income levels, he said.
“Further, 68 per cent of hospital treatments in terms of value were carried out by private hospitals in FY20 which is expected to increase to 72 per cent in FY24. All these factors bodes well for players like KIMS,” Mishra said in a IPO note.
