The two companies filed their preliminary papers with the Securities and Exchange Board of India (Sebi) in February.
Krishna Institute of Medical Sciences (KIMS) and India Pesticides obtained Sebi’s observation on April 28 and April 30, respectively, an update with Sebi showed on Monday.
Sebi’s observation is necessary for any company to launch public issues like initial public offer (IPO), follow-on public offer (FPO)and rights issue.
India Pesticides’ Rs 800-crore IPO comprises fresh issuance of shares amounting to Rs 100 crore and an offer of sale of Rs 700 crore by promoter and technocrat Anand Swarup Agarwal and other shareholders, according to draft red herring prospectus.
The Uttar Pradesh-based company may decide to undertake a pre-IPO placement of Rs 75 crore, subject to consultation of the merchant bankers.
The proceeds of the fresh issue would be used towards funding the working capital requirements and general corporate purposes.
India Pesticides is an R&D-focused agrochemical technical company, which has growing formulations business in herbicides, insecticides and fungicide segments. It also manufactures active pharmaceutical ingredients (APIs).
It is the only Indian manufacturer and among the top-five companies globally for several technical products such as folpet and cynomoxanil, used to make fungicides that control fungal growth across a variety of crops.
Currently, India Pesticides operates from two manufacturing facilities at Lucknow and Hardoi in Uttar Pradesh with an aggregate capacity of 19,500 MT for technicals and 6,500 MT for the formulations vertical.
Going by the draft papers, KIMS’ initial public offering consists of fresh issue of shares aggregating up to Rs 200 crore and an offer for sale of up to 21,340,931 equity shares from promoters and existing shareholders.
A total of 1,39,77,991 equity shares would be offered by General Atlantic Singapore KH Pte Ltd under the offer for sale, up to 7,75,933 equity shares by Bhaskara Rao Bollineni, up to 11,63,899 equity shares by Rajyasri Bollineni, up to 3,87,966 equity shares by Bollineni Ramanaiah Memorial Hospitals Pvt Ltd.
The offer includes a reservation for subscription by eligible employees.
According to merchant banking sources, the IPO is expected to fetch Rs 700 crore.
The proceeds from the fresh issue will be used to repay debt of the company and its subsidiaries.
KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of the number of patients treated and treatments offered.
It operates nine multi-specialty hospitals under the ‘KIMS Hospitals’ brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of December 31, 2020.
KIMS Hospitals offer a comprehensive range of healthcare services across over 25 specialties and super specialties, including cardiac sciences, oncology, neurosciences, gastric sciences, orthopaedics, organ transplantation, renal sciences and mother and child care.