The initial public offer (IPO) of Rainbow Childrens Medicare received bids for 53,36,091 shares as against 2,05,14,617 shares on offer, according to stock exchange data at 15:45 IST on Wednesday ( 27 April 2022). The issue was subscribed 26%.

The issue opened for bidding on Wednesday (27 April 2022) and it will close on Friday (29 April 2022). The price band of the IPO is fixed at Rs 516 - 542 per share. An investor can bid for a minimum of 27 equity shares and in multiples thereof.

The IPO comprise of fresh issue of equity shares worth up to Rs 280 crore and an offer for sale of Rs 1300.84 crore on upper price band, by existing shareholders- Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla, Dr. Adarsh Kancharla, British International Investment plc, CDC India and Padma Kancharla.

Objectives for the fresh issue are- Early redemption of NCDs issued by the company to cdc emerging markets of Rs 40 crore, capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals of Rs 170 crore and remaining amount will be used for General corporate purposes.

The Promoters of the company are Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Adarsh Kancharla. Promoters and promoter group holds an aggregate of 59,912,3 84 equity shares, aggregating to 62.19% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 50.43%.

Ahead of the IPO, Rainbow Childrens Medicare on Tuesday, 26 April 2022, finalized allocation of 8,663,404 equity shares to anchor investors at an allocation price of Rs 542 per share, aggregating to Rs 4,695,564,968.

Rainbow Childrens Medicare is a leading multi-specialty pediatric, obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021. Company has the highest number of hospital beds amongst comparable players in the maternity and pediatric healthcare delivery sector, as of March 31, 2021.

Its core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic and fertility care.

The company reported a net profit of Rs 126.07 crore and net sales of Rs 761.31 crore for the nine months ended December 2021.