Krishna Institute of Medical Sciences’ (KIMS) IPO has opened for subscription n Wednesday (June 16), and will close on June 18. The IPO size is Rs 2,120 to Rs 2,144 crore and the price band has been set at Rs 815-825.

This is a regional hospital in Andhra Pradesh and Telangana, and has a total of nine multi-specialty hospitals with over 2,500 operational beds as of December 2020.

Dr Bhaskara Rao Bollineni, MD of KIMS, said that the company will use the money raised to reduce debt. “We are getting around Rs 200 crore of primary into the company. Out of that, Rs 150 crore will go to repay the debt from the main company and subsidiaries. The balance of Rs 50 crore, we are going to keep it for general corporate purposes,” he said in an interview to CNBC-TV18.

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He said that the company is almost debt free. “As of today, Rs 250 crore is the debt in both, main and subsidiaries,” he said.

Bollineni also said that the company is looking to reduce pledge to 4 percent. “We have pledged nearly 17 percent of KIMS shares to raise some debt for my brothers. They are running a different company and when they required funds, they borrowed and pledged KIMS shares. So, when we want to move to IPO, we want to clear the entire personal debt of promoters and promoter group. So, that is why we are selling this. Going forward, we want to reduce the pledge maximum up to 5 percent,” he said.

For the full interview, watch the video.

(Edited by : Dipika Ghosh)

First Published:Jun 16, 2021 12:47 PM IST