The initial public offering (IPO) of multispecialty pediatric hospital chain Rainbow Children’s Medicare Ltd will open for public subscription next week (April 27). The initial share sale of Rs 2,000 crore will close on April 29. The anchor investors will be able to bid on April 26, according to the Red Herring Prospectus (RHP). Here’s what investors need to know about the IPO:
How big is the IPO?
The IPO size is expected to exceed Rs 2,000 crore, according to a report from 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.
Promoters selling stock through OFS
Promoters selling shares in the OFS include 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.
Reservation
The tender offer also includes a reservation of up to 3 lakh shares for subscription by eligible employees.
The purpose of the offer
The company said it will use the net proceeds from the new issuance to prepay non-convertible bonds (NCDs) issued by the company; capital expenditure on setting up new hospitals and purchasing medical equipment for such new hospitals; and general corporate purposes.
Investment Managers and Listing
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the books leading executives to this issue. 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.”
About the company
Rainbow operates 14 hospitals and three clinics in six cities across the country, with a total bed capacity of 1,500 beds as of December 20, 2021. The company is backed by UK-based development finance institution CDC Group.
It established its first 50-bed pediatric specialist hospital in 1999 in Hyderabad. Since then, it has established its reputation as a leader in multi-specialized pediatric services, with strong clinical expertise in the management of complex diseases.
The core specialties are pediatrics, including intensive care for neonates and pediatric patients, pediatric multi-specialty services, pediatric quaternary care (including multi-organ transplants); and obstetrics and gynecology, including normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic care and fertility care.
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