Multispecialty pediatric hospital chain Rainbow Children’s Medicare IPO will open for public subscription next week on April 27. The Rs 1,500-crore IPO, which will close on April 29, includes a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares. Anchor investors will be able to bid on April 26. Here’s what investors need to know about the IPO:
Rainbow Children’s Medicare IPO Size
The IPO size is expected to be at Rs 1,581 crore. It includes a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders.
Rainbow Children’s Medicare IPO Price Band & GMP
The price band of the public issue has been fixed at Rs 516-542 per equity share. According to market participants, shares of Rainbow Children’s Medicare have started trading in the grey market. It is trading at a premium of Rs 52 in the grey market.
Rainbow Children’s Medicare IPO Reservation
In the initial public offering, up to 3 lakh shares will be reserved for subscription by eligible employees.
Rainbow Children’s Medicare IPO: Objective
The company will utilise the net proceeds from the fresh issue on capital expenditure to set up new hospitals and purchase medical equipment for such new hospitals; for early redemption of non-convertible debentures (NCDs) issued by the company in full; and for general corporate purposes, it said.
Investment Managers & Listing
Books running lead managers to the issue are Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities. The company’s equity shares are proposed to be listed on BSE and NSE.
According to the red herring prospectus, this being the first public offer of its equity shares, there has been no formal market for the equity shares of the company. “The face value of the equity shares is Rs 10,” it said.
Promoters Selling Stakes Via OFS
The IPO also includes an offer-for-sale by promoters such as Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors British International Investment plc (formerly known as CDC Group plc) and CDC India.
About Rainbow Children’s Medicare
It is a South India-based multispecialty pediatric, obstetrics and gynecology hospital chain. Rainbow Children’s Medicare is one of its newborn baby-focused hospital chains in India. The company has 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multispeciality services, pediatric quaternary care, obstetrics and gynecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care.
Rainbow Children’s Medicare: Expert Opinion
Angel One Research Analyst (Equities) Yash Gupta said, “We have a positive outlook for Rainbow Children’s Medicare Limited IPO.” He added that in the year ended December 2021 quarter, the company’s profit after tax jumped 228 per cent year-on-year to Rs 126.4 crore. Revenue for the same period was also up by 15.2 per cent.
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