Hyderabad-based super-specialty hospital chain Krishna Institute of Medical Sciences Ltd
(KIMS Hospitals) is planning to go public and has initiated talks with investment banks for an initial public offering (IPO), reports a business daily.
The IPO is expected in the calendar year 2017.
The plan for an IPO, which could see the company raise up to INR 600 crore, has been in the works for the past few months, a person close to the development has been quoted as saying.
"The management has been meeting with bankers over the last 2-3 months. They are planning an IPO, the size of which could be ~INR 500-600 crore, but they are yet to mandate banks for managing the process,” he told the paper.
The IPO market has been abuzz lately and investors have shown a keen interest in the public issues of healthcare services companies, according to the daily.
Last year, 21 companies raised INR 13,614 crore through the IPO route, while so far this calendar year, nine companies have raised INR 5,941.7 crore from the IPO.
Since December, four healthcare services companies have tapped the primary markets to fund their expansion plans and provide an exit to their private equity (PE) investors.
Collectively, these companies - Dr Lal Pathlabs Ltd, Narayana Hrudayalaya Ltd, HealthCare Global Enterprises Ltd and Thyrocare Technologies Ltd - have raised ~INR 2,375 crore.
Apart from the share sale of Healthcare Global, the other three IPOs witnessed strong demand from investors.
The issues of Thyrocare, Dr Lal Pathlabs and Narayana Hrudayalaya were subscribed 73, 33 and 8 times, respectively.