Mumbai. Once again the IPO market is booming. Today on June 16, two more new IPOs KIMS and Dodla Dairy have been opened. These will close on June 18. At the same time, Shyam Metalics and Sona comstar will close this evening. These four IPOs are getting good response from investors.
KIMS i.e. Krishna Institute of Medical Sciences
The IPO of Krishna Institute of Medical Sciences (KIMS) is open for subscription today. It will be open for investment from June 16 to June 18. KIMS plans to raise Rs 2144 crore through IPO.
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Krishna Institute of Medical Sciences has fixed the price band for the IPO at Rs 815-825. The lot size of the IPO is 18 shares. That is, it will be necessary to buy at least 18 shares in it. If we look at the upper price band of the stock at Rs 825, then it will be necessary to invest at least Rs 14850 in it.
200 crore fresh shares will be issued
New shares up to Rs 200 crore will be issued in the IPO of KIMS. At the same time, 2.35 crore shares will be sold by promoters and other investors through offer for sale. Krishna Institute of Medical Sciences is the largest hospital chain running company in Andhra Pradesh and Telangana.
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The company will use the funds from the IPO for repayment and general needs. Axis Capital, Kotak Mahindra Capital, Credit Suisse Securities and IIFL Securities have been appointed as merchant bankers. Lin Intime India Private Ltd will be the registrar for the IPO.
Better revenue and profit of the company
Experts say that investing money in it by thinking long term investment. Only those having high risk capacity should invest money in this IPO. However, there is no problem with the management of the company. Revenue and profits are also getting better. The EPS in the March quarter stood at Rs 26, which was close to Rs 16 a year ago.
The company has turned profit from loss. Valuation is also better than other peer companies. But the problem with the company is that it is limited to Andhra Pradesh and Telangana. All business is limited here. The company is not a pan India player, can’t say whether there will be further expansion or not.
Dodla Dairy IPO:
The IPO of Dodla Dairy is also open today on June 16. The issue price band of Dodla Dairy is Rs 421-428 per share. Under the issue, the company is issuing a fresh issue of Rs 50 crore. While there is an offer for sale of Rs 1.09 crore. TPG Dodla Dairy Holdings Pvt Ltd and the promoters are about to sell their stake.
Experts are giving investment advice in this IPO. Market experts believe that the company has benefited from the increase in the demand for unopened packaged milk due to coronavirus infection. Its balance sheet has strengthened.
Giving a subscribe rating to the issue, Choice Broking said, “After the transition, the focus on health has increased, due to which the demand for packaged milk is higher than ever before. Apart from this, the demand for the company’s products due to the opening of hotels, restaurants and cafes. Will grow.”
At the same time, this IPO is trading at a premium of 180 in the gray market. That is, it has a lot of demand among investors.