KIMS Board Approves Plan to Raise Up to ₹1,500 Crore Through QIP
Krishna Institute of Medical Sciences Ltd. (KIMS) has approved a proposal to raise up to ₹1,500 crore through the issuance of equity shares via a qualified institutional placement (QIP) or other permissible routes.The decision was taken at a meeting of the company’s board of directors held on Wednesday, March 11. The hospital chain disclosed the development in a regulatory filing with the stock exchanges.
Fundraising Subject to Approvals
According to the company, the proposed fundraising plan will be subject to approvals from shareholders and relevant regulatory authorities. The final issue price for the equity shares will also be determined at a later stage.KIMS stated that the securities to be issued under the proposal will be equity shares, with the total issue size capped at ₹1,500 crore, including any applicable premium.
To move forward with the process, the board has authorised its Finance and Investment Committee to determine the detailed terms and conditions of the proposed issuance.
The board has also approved the issuance of a postal ballot notice to seek shareholders’ approval for the fundraising plan.
Financial Performance in the December Quarter
For the December quarter, KIMS reported a decline in net profit despite strong revenue growth.The company’s net profit fell 39.8% year on year to ₹53.4 crore, compared with ₹88.7 crore in the same quarter of the previous financial year.
Revenue, however, rose 29.2% year on year to ₹997.7 crore from ₹772.4 crore a year earlier.
EBITDA increased 6.3% year on year to ₹199 crore from ₹187 crore in the corresponding period last year. However, EBITDA margin declined to 19.9% from 24.2% in the year ago quarter.
Stock Performance
Shares of Krishna Institute of Medical Sciences Ltd. ended 1.38% lower at ₹679 after the announcement.Over the past one year, the stock has gained 28.85%.
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