Rainbow Children’s Medicare IPO: Rainbow Children’s Medicare’s first public offering (IPO) is ready to hit the market. The subscription will open on April 27, 2022. The public issuance worth Rs 1,595 crore will remain open until April 29, 2022. The company provides services such as pediatric multi-specialty services, obstetrics and gynecology, newborn and pediatric intensive care, and pediatric quaternary care. The IPO has an issue size of Rs 1,580 crore. Out of the total, the IPO has a new issue of Rs 280 crore. The IPO has an offer for sale of Rs 1,300.85 crore.
Rainbow Children’s Medicare IPO GMP
According to the market observers, Rainbow Children’s Medicare IPO gray market premium (GMP) is today Rs 50, which is Rs 15 higher than Sunday’s gray market premium of Rs 35. Observers said an increase in GMP can be taken as a good signal from the gray market, as the sentiment in the secondary market has been negative for the past two sessions and today the stock market is open in red territory. They said there would be a sharp upward move in the price of Rainbow Children’s Medicare stock in the gray market once there is a trend reversal in the secondary market. In recent days, Rainbow Children’s Medicare IPO GMP had fallen from Rs 53 to Rs 35. So today’s increase is expected to provide relief to those who intend to invest in the public issue. Rainbow Children’s Medicare IPO GMP today is Rs 50 meaning the gray market expects Rainbow Children’s Medicare IPO to quote at around Rs 592 (Rs 542 + Rs 50), which is about 9 percent higher than the top price range of Rs 542 per own share power.
However, stock analysts warned IPO investors to make investment decisions based on GMP only. They said that GMP is unofficial and unregulated data. It has nothing to do with the company’s finances. They advised investors to look at the concrete fundamentals available in the company’s balance sheet.
Rainbow Children’s Medicare IPO Reason:
Rainbow Children’s Medicare will use the net proceeds of 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.
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 IPO Should You Invest?
Santosh Meena, Head of Research, Swastika Investmart Ltd. at Rainbow Children’s Medicare Ltd., said: “Rainbow Children’s Medicare Ltd. (RCML) is a leading hospital chain with multiple specialist pediatric, obstetric and gynecological hospitals in India. They have followed a financially disciplined model, aimed at cost-effective growth. they may seek to expand their hospital network through the acquisition of Brownfield assets or development of Greenfield assets.This release is a combination of OFS & fresh release and costs a PE of 43.53 on the annual figure of FY 22 numbers. ”
“Profitability for 9 months ended December 31, 2021 increased significantly to 126.41 crores, from 38.53 crores in the same period of the last fiscal year. There is a possibility that this sudden rise in profitability was due to covid second wave hospitalizations in Q1 FY21-22. Therefore, we believe that this exponential increase in earnings may not continue in the future. However, the specialized nature of the business, experienced management team, proven ability to attract, train and retain high-calibre medical professionals, and hospital penetration in India make this issue a good fit for long-term investors,” said Meena. .
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