Kids Clinic India Ltd IPO 

Last Updated on October 17, 2023 by BFSLTeam BFSLTeam

Kids Clinic India Ltd IPO will consist of fresh issues of up to Rs. 300 crore and 1,32,93,514 shares as an Offer for Sale by its promoters and other shareholders. The company aims to raise funds amounting up to Rs. Rs. 1,200 crore through its IPO.

Kids Clinic India Ltd is backed by several marquee investors including True North and Sequoia. The Cloudnine brand operator is one of the top providers of super-speciality baby and mother care. The company has filed its Draft Red Herring Prospectus with the market regulator SEBI in Feb 2023.

Learn about Kids Clinic India, its financials, and its IPO before investing. 

About Kids Clinic India Ltd.

A leading brand in the super speciality maternal and child care sector, Kids Clinic India Ltd has 23 centres across 6 Indian states and 1 union territory as of the date of its DRHP filing. It provides comprehensive maternity care and additional services, including newborn baby care and pregnancy care.

In FY21, it held the top position in terms of revenue and number of hospitals among super-speciality maternal and childcare hospitals, according to a CRISIL Report. Its expertise includes fertility treatment, maternity, paediatrics and neonatology offering comprehensive support to expectant parents.

The company has assisted thousands of births and provided fertility services, providing a holistic approach to the well-being of both mother and child. The maternity care chain employs more than 2,000 doctors and 5,700 employees. Its medical personnel have assisted in over 1.5 lakh births to date.

The company enhances clinical services through digitisation and technology. Recent initiatives include a comprehensive mobile app with a chatbot, virtual medical consultations through “Clinic-in-a-box” and pioneering e-NICU services connecting neonatal units digitally. 

Company Financials 

The following table lays down some crucial financial details that can be useful for potential investors. 

Parameters as Per the Year Ending On	March 31 2021	March 31 2020	March 31 2019
Total Assets	7,082.36	6,157.23	6,237.85
Total Liabilities	5,027.74	3,810.05	3,818.31
Total Expenses	6,009.80	5,623.35	5,030.51
Total Revenue	5,665.65	5,259.92	4,283.72
Profit After Tax	(347.08)	(296.21)	(654.73)
EBITDA	300.85	233.39	(175.46)
Earnings Per Share (EPS) (Basic & Diluted) *	(8.30)	(7.05)	(15.67)

*Values in Rs. millions except EPS 

Kids Clinic India Ltd IPO price, subscription date, lot size, and other relevant details are yet to be announced. 

Also Read: How To Apply For An IPO?

Strengths of Kids Clinic India Ltd.

Kids Clinic India has worked its way up through some unique strategies. Here are some unique strengths of this company: 

• The leading speciality maternal and childcare chain operates in a fast-growing market that was valued at Rs. 208 billion in FY 2020 and is projected to reach Rs. 261 billion by FY 2026. 
• The private maternity healthcare market stood at Rs. 208 billion in FY2020 and is expected to grow to Rs. 261 billion by FY2026, according to a CRISIL report. This provides plenty of opportunities for the maternity care chain.
• The company provides comprehensive perinatal services, from conception to postpartum and paediatric care, featuring the seamless integration of fertility and obstetrics services. 
• With a focus on quality, Kids Clinic India maintains low infant mortality (0.56%) and maternal mortality (8.7 deaths per 100,000 live births). 
• By leveraging digital solutions, it offers virtual clinical services and remote monitoring, expanding its reach and customer base.
• Its success is attributed to attracting top medical professionals through valuable clinical experience and competitive compensation, resulting in a team of 1,480 medical professionals, including qualified PCH physicians and paediatricians.

Risks Involved 

Along with its impressive growth and success, there are some underlying factors that pose risks of harming the company’s finances and reputation. Here are a few of them:

• Dependence on health professionals is essential; failure to retain them will have a negative impact on operations. 
• Maintaining brand strength is vital; negative media or false allegations can damage credibility and lead to financial setbacks. 
• Inadequate adaptation to advances in medical technology can also affect this company’s business and finances.

Summary 

Proceeds from Kids Clinic India Ltd IPO will be utilised towards setting up new centres across the country and the acquisition of Acuity Labs. The remaining funds will be used to repay and prepay certain debts availed by the company previously. With the Bengaluru-based company being a market leader, its IPO presents a lucrative opportunity for investments in the maternity care sector. 

Also Read: Benefits of Investing in IPO

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