The recent IPOs of Indian companies have seen bumper buying by not only retail investors but fund houses too as data shows fund houses made healthy purchases in two IPOs in the month of June.
Two mainboard IPOs – Krishna Institute of Medical Sciences (KIMS Hospitals) and Dodla Dairy – were listed on Indian bourses in June and fund houses invested nearly Rs 1,200 crore cumulatively in both these firms.
As per Morningstar data, some 45 funds cumulatively invested Rs 1,193.22 crore in these two IPOs as of June 30, 2021.
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As many as 31 funds invested Rs 862.57 crore in KIMS Hospitals while 14 funds invested Rs 330.65 crore in Dodla Dairy till June 30, Morningstar data shows.
Among the big purchases, HDFC Balanced Advantage Fund had invested some Rs 117.23 crore in KIMS Hospitals as of June 30. On the other hand, SBI Small Cap Fund had invested Rs 172.92 crore in Dodla Dairy as of June 30, Morningstar data showed.
KIMS Hospitals and Dodla Dairy both were listed on bourses on June 28.
The KIMS Hospitals IPO saw a subscription of 3.86 times on June 18, the last day of bidding. The offer has received bids for 5.56 crore shares against the IPO size of 1.44 crore shares, the subscription data on exchanges showed. The company is selling in a price band of Rs 815-825 a share.
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Dodla Dairy IPO saw a subscription of 45.62 times as the offer received bids for 38.80 crore equity shares against IPO size of 85.07 lakh equity shares on June 18, the final day of bidding.
KIMS operates in nine multi-specialty hospitals under the ‘KIMS Hospitals’ brand, with an aggregate bed capacity of 3,064, with more than 2,500 operational beds as on FY21, which is 2.2 times more than the second-largest provider in Andhra Pradesh and Telangana.
The multi-specialty hospitals chain raised Rs 2,144 crore from investors during June 16-18, which comprised a fresh issue of Rs 200 crore and an offer for sale of up to Rs 1,944 crore. The company will pay its certain borrowings through the funds raised via fresh issue.
Incorporated in 1995, Dodla Dairy, which has a significant presence in the southern region of India, with operations primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, successfully raised Rs 520.17 crore from investors during June 16-18, 2021.
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The company primarily derives all of its revenue from the sale of milk (around 75 percent of 9MFY21 revenue) and dairy-based VAPs (value-added products) in the branded consumer market, having 13 processing plants with an aggregate installed capacity of 1.70 million litres of raw milk per day (MLPD).
