PE firm General Atlantic to pare its stake in India’s KIMS via IPO

New York-based private equity firm General Atlantic aims to pare its stake in Krishna Institute of Medical Sciences Ltd (KIMS) through an initial public offering (IPO), said three people aware of the development on condition of anonymity.

The hospital chain aims to raise 700-800 crore through the IPO, which includes the stake sale by General Atlantic and a fresh issue of shares to raise growth capital, said one of the three people cited above. General Atlantic had invested $130 million in 2018 in KIMS.

“KIMS has recently shortlisted three investment banks to start work on the IPO. The draft red herring prospectus is likely to be filed next quarter,” said the second person cited above.

Emailed queries to KIMS did not elicit a response. General Atlantic chose not to comment.

The hospital chain operates in Andhra Pradesh and Telangana through a network of nine hospitals comprising more than 3,000 beds across Secunderabad, Kondapur, Nellore, Rajamundry, Srikakulam, Ongole, Visakhapatnam, Anantapur and Kurnool, according to the company’s website. The flagship hospital at Secunderabad is one of the largest private hospitals in India at a single location with a capacity of 1,000 beds.

As on 31 March, the promoter and promoter group held 44.59% of KIMS. General Atlantic Investments owned 42.6%, while other minority shareholders held a 12.8% stake in the company, according to a report by rating agency Icra.

“The operating income of the company grew at a compound annual growth rate of 22% during FY2015- FY2020 as the bed capacity was increased to 3,004 in FY2020 from 1,184 in FY2015 and the occupancy rate improved to 74% from 65% during the same period. The company reported a 32% year-on-year (y-o-y) growth in operating income to 1,122.6 crore in FY2020, backed by the increase in the occupancy level, a 25.7% growth in inpatient volumes, a 6.8% growth in average revenue per operating bed along with addition of a new hospital (KIMS Kurnool),” said Icra in its report dated 27 July.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.