NE BUSINESS BUREAU
HYDERABAD, APRIL 22
Multi-speciality pediatric hospital chain Rainbow Children’s Medicare Ltd has fixed a price band of Rs 516-542 a share for its initial public offering (IPO). The-three day initial share sale will be open for public subscription next week from April 27-29, and the bidding for anchor investors will open on April 26, said senior officials of the company at a virtual meet on Friday.
The public issue comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale (OFS) of up to 2.4 crore equity shares by promoters and investors. At the upper end of the price band, Rainbow Children’s Medicare IPO is expected to fetch Rs 1,581 crore.
- Rainbow Children’s Medicare IPO will be open for public subscription from April 27-29, 2022
- The public offer also includes a reservation of up to 3 lakh shares for subscription by eligible employees.
- The company plans to add 500 beds over a period of three years with each bed costing Rs 60 lakh
The public offer also includes a reservation of up to 3 lakh shares for subscription by eligible employees.
Promoters that are selling shares in the OFS are 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.
The equity shares of the company are expected to list on leading stock exchanges BSE and NSE on May 10, 2022.
The company proposes to utilise the net proceeds from the fresh issue from the IPO for early redemption of non-convertible debentures (NCDs) issued by the company in full; capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
Rainbow’s core specialities are paediatrics, which includes newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care (including multi-organ transplants), and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.
Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds. Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the books running lead managers to the issue.
