Rainbow Children’s Medicare Limited’s three-day initial public offering (IPO) was open for subscription on April 27 and ends today.
Till 10:10 am on the last day of issue, Rainbow Children Medicare IPO 57% subscribed. BSE data shows that the share of retail individual investors (RIIs) got 84 per cent subscription, while non-institutional investors got 58% subscription and the quota for qualified institutional buyers (QIBs) got subscribed 10%.
As per market observers, Rainbow Children Medicare is available at a premium of share (GMP) 31 in the gray market today. The equity shares of the company are expected to be listed on the major stock exchanges BSE and NSE on Tuesday, 10th May, 2022.
“Rainbow Children Medicare has a children-focused approach. The target market is expected to grow at a CAGR of 14% by FY26. However, Rainbow’s key will be to sustain the current growth trajectory amid increasing consolidation in the healthcare space and margin profile. ICICI Securities said in a note, “We offer SUBSCRIBE rating in view of its unique model and good valuations.
IPOContains latest issue aggregated 280 crore and the price range of the offer for sale of 2,40,00,900 equity shares. is 516-542 each. On Tuesday, the multi-specialty pediatric hospital chain said it had 470 crores from anchor investors. At the upper end of the price band, IPO is expected 1,581 crore.
The company proposes to use the net proceeds from the new issue for full redemption of non-convertible debentures, setting up of new hospitals and purchase of medical equipment, and capital expenditure for general corporate purposes.
Rainbow Children’s Medicare, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric specialty hospital in Hyderabad in 1999.
As of December 20, 2021, Rainbow operates 14 hospitals and three clinics with a total bed capacity of 1,500 beds across six cities in India. Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities is the Book Running Lead Manager of the issue.