Rainbow Children’s Medicare’s first public offer of Rs 1,581 crore, which was issued at a price range of Rs 516-542 per share, is trading at a premium of Rs 20 above the highest price in the gray market. The Rainbow Children’s Medicare IPO, which was open for enrollment from April 27-29, was enrolled 12.43 times on the last day of enrollment.
Rainbow Children’s Medicare IPO GMP
According to the IPO Watch, Rainbow Children’s Medicare shares traded in the gray market at a premium of Rs 20 above the top price band of Rs 542 apiece. It translates into a five percent listing gain. It means the shares are trading in the gray market at Rs 562 each. However, the current GMP (Grey Market Premium) of Rs 20 has dropped compared to Rs 30 which was registered on April 28. The premium fluctuates based on market sentiment.
Rainbow Children’s Medicare IPO: Subscription Details
The Qualified Institutional Buyers (QIBs) category received subscriptions 38.90 times, while the Retail Investors (RIIs) section received subscriptions 1.38 and non-institutional investors 3.73 times. The offering, consisting of a new issue totaling Rs 280 crore and an offer for sale of up to 2,40,000,900 shares, was priced at Rs 516-542 each.
The offering, consisting of a new issue totaling Rs 280 crore and an offer for sale of up to 2,40,000,900 shares, was priced at Rs 516-542 each. The hospital chain collected nearly Rs 470 crore from anchor investors.
Rainbow Children’s Medicare is a leading hospital chain with multiple specialized pediatric, obstetric and gynecological hospitals in India. Spread across six cities, the company operates 14 hospitals and three clinics. With its first public offering, the group plans to raise Rs 1,581 crore.
From the net proceeds, the company plans to use the Rs 40 crore for early redemption financing of non-convertible bonds (NCDs) issued by them to one of their group companies. About Rs 170 crore would go towards setting up new hospitals and purchasing medical equipment and general business purposes.
It is backed by UK-based development finance institution CDC Group plc. The company established its first 50-bed pediatric specialty hospital in Hyderabad in 1999.
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the managers of the offer.
Rainbow Children’s Medicare: Finance
The company posted a 228 percent year-over-year profit increase to Rs 126 crore in the first nine months of FY22. It posted strong sales and healthy margin expansion. The company also posted a 57 percent year-over-year revenue increase to Rs 760 crore in the reporting period. Ebitda rose 97 percent year-on-year to Rs 260 crore during the same period, with a margin of 33.7 percent. Ebitda stands for earnings before interest, tax, depreciation and amortization.
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