The Rs 1,581-crore initial public offer of Rainbow Children’s Medicare, which was issued at a price band of Rs 516-542 per share, is trading at a premium of Rs 20 over the upper price in the grey market. The Rainbow Children’s Medicare IPO, which was open for subscription during April 27-29, was subscribed 12.43 times on the last day of subscription.
Rainbow Children’s Medicare IPO GMP
According to the IPO Watch, the shares of Rainbow Children’s Medicare in the grey market were trading at a premium of Rs 20 over the upper price band of Rs 542 apiece. It translates into a listing gain of five per cent. It means the shares in the grey market are trading at Rs 562 apiece. However, the current GMP (grey market premium) of Rs 20 is down as compared with Rs 30 recorded on April 28. The premium gets fluctuated based on the sentiments in the markets.
Rainbow Children’s Medicare IPO: Details About Subscription
The category for qualified institutional buyers (QIBs) got subscribed 38.90 times, while the retail individual investors (RIIs) portion received 1.38 times subscription and non-institutional investors 3.73 times. The offer, comprising fresh issue aggregating up to Rs 280 crore and an offer for sale of up to 2,40,00,900 equity shares, had a price range of Rs 516-542 apiece.
The offer, comprising fresh issue aggregating up to Rs 280 crore and an offer for sale of up to 2,40,00,900 equity shares, had a price range of Rs 516-542 apiece. The hospital chain garnered nearly Rs 470 crore from anchor investors.
Rainbow Children’s Medicare is a leading multi-specialty paediatric and obstetrics and gynaecology hospital chain in India. Spread over six cities, the company operates 14 hospitals and three clinics. With its initial public offering, the group is planning to raise Rs 1,581 crore.
From the net proceeds, the company aims to utilise the Rs 40 crore towards funding for early redemption of non-convertible debentures (NCDs) issued by them to one of their group companies. Around Rs 170 crore would go towards setting up of new hospitals and purchase of medical equipment and general corporate purpose.
It is backed by the UK-based development finance institution CDC Group plc. The company established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad.
Kotak Mahindra Capital Company, J P Morgan India and IIFL Securities are the managers to the offer.
Rainbow Children’s Medicare: Financials
The company registered a 228 per cent year-on-year jump in profit to Rs 126 crore during the first nine months of FY22. It recorded a strong revenue and healthy margin expansion. The company also posted a 57 per cent year-on-year jump to Rs 760 crore in revenue for the period under review. Its Ebitda rose 97 per cent year-on-year to Rs 260 crore in same period, with a margin of 33.7 per cent. Ebitda stands for earnings before interest, tax, depreciation and amortisation.
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