Multispecialty pediatric hospital chain Rainbow Children’s Medicare IPO opens for public subscription next week on April 27. The IPO of Rs 2,000 crore, which closes on April 29, includes a new share issue totaling up to Rs 280 crore and an offering sale of up to 2.4 crore shares. Anchor investors can bid on April 26. Here’s what investors need to know about the IPO:
Rainbow Children’s Medicare IPO Size
The IPO is expected to exceed Rs 2,000 crore, according to a report by PTI news agency. It includes a new share issue totaling up to Rs 280 crore and an offering sale of up to 2.4 crore shares by the selling shareholders.
Rainbow Children’s Medicare IPO Price Band & GMP
The price range of the public offering has been set at Rs 516-542 per share of shares. According to market participants, Rainbow Children’s Medicare shares have begun trading in the gray market. It is trading at a premium of Rs 52 in the gray market.
Rainbow Children’s Medicare IPO Reservation
At the first public offering, a maximum of 3 lakh shares will be reserved for subscription by eligible employees.
Rainbow Children’s Medicare IPO: Goal
The company will use the net proceeds from the new capital expenditures issue to establish new hospitals and purchase medical equipment for such new hospitals; for early redemption of non-convertible bonds (NCDs) issued wholly by the company; and for general corporate purposes, it said.
Investment Managers and Listing
Books leading executives to the issue include Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities. It is proposed to list the company’s shares on BSE and NSE.
According to the red herring prospectus, as this is the first public offer of its shares, there has been no formal market for the company’s shares. “The par value of the shares is Rs 10,” it said.
Promoters selling stock through OFS
The IPO also includes a sale offer from 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 hospital chain based in South India with multiple specialist pediatric, obstetric and gynecological hospitals. Rainbow Children’s Medicare is one of the newborn 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 neonatal and pediatric intensive care, pediatric multispecialty services, pediatric quaternary care, obstetrics and gynecology, including normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic care 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’s IPO.” He added that in the year ended the December 2021 quarter, the company’s after-tax profit rose 228 percent year-on-year to Rs 126.4 crore. Sales for the same period also increased by 15.2 percent.
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