Kids Clinic India Ltd IPO

Kids Clinic India, which works on super-specialty women’s, childcare and fertility hospital chain Cloudnine, has filed a draft red herring prospectus with SEBI and raised Rs 1,200 Cr through an initial share sale (IPO). The issue consists of fresh equity shares up to Rs 300 CR and an offer for sale of up to 13,293,514 equity shares by the existing shareholders.

The main focus of the business revolves around mothers and babies. Kids Clinic India aims to establish world-class medical expertise to provide the best service to the customers. They are one of the leading brands in the super-specialty mother and baby care space. The company provides end-to-end coverage of all stages of parenthood. 

Kids Clinic India has set up 23 centers across six states and one union territory in India. Most of the centers have comprehensive mother and baby services that include diagnostic and laboratory services as well as newborn intensive care units. 

Kids Clinic India Limited IPO Objective: 

• The fund will be used to set up new centers at various locations across the country
• The fund will be used for further acquisition in their subsidiary and acuity Labs

Why should you invest in Kids Clinic Limited IPO:

• There is a huge increase in demand for comprehensive baby and mother care. In the year 2020, the private maternity healthcare market in Fiscal 2020 was ₹208 billion and is expected to grow at a CAGR of 11% to 12 % fiscal 2021 to Fiscal 2026 to reach ₹ 261 billion in Fiscal 2026. 
• As still the market is filled with largely unorganised standalone nursing homes and maternity clinics, Kids Clinic Limited super-specialty mother and baby care chain eats alone the market share by offering superior medical support with strong customer support and faster expansions. 

Kids Clinic India Limited Noteworthy Highlights:

• The bengaluru facility has been ranked as No 1 National Single Speciality Hospitals by the Times of India in 2020 in the ObGyn and Pediatrics category,
• Kids Clinic India has gathered a revenue of ₹ 5,545.86 million in FY21 from operations

IPO Financials

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Strengths

1. Kids Clinic India has an highly scalable and capital effect expansion model which helps them in expansion

2. The company relies on digitisation and leverage technology to maximise the quality of our clinical services

3. The only healthcare chain which is a part of the Vermont Oxford Network (VON)

Risks

1. Failure to enhance the the brand reputation and any negative reputation can adversely affect the business

2. Any challenges in expanding the business in the current and in the potential cities can affect the business severely

3. The failure to adapt and identify any technological advancements related to medical equipment can affect the business

Peer Comparison