The initial public offer (IPO) of Rainbow Childrens Medicare received bids for 25,49,03,787 shares as against 2,05,14,617 shares on offer. The issue was subscribed 12.43 times.

The qualified institutional buyers (QIBs) category was subscribed 38.90 times. The non institutional investors category was subscribed 3.73 times. The retail investors category was subscribed 1.38 times. The employees category was subscribed 31%.

The issue opened for bidding on Wednesday (27 April 2022) and it closed on Friday (29 April 2022). The price band of the IPO was fixed at Rs 516-542 per share.

The IPO comprised of fresh issue of equity shares worth up to Rs 280 crore and an offer for sale of up to 2,40,00,900 equity shares by existing shareholders - Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla, Dr. Adarsh Kancharla, British International Investment plc, CDC India and Padma Kancharla.

The company proposes to utilize the net proceeds from the issue towards 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.

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 the allocation of 86.63 lakh equity shares to anchor investors at an allocation price of Rs 542 per share, aggregating to Rs 469.55 crore.

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 31 December 2021. The company has the highest number of hospital beds amongst comparable players in the maternity and pediatric healthcare delivery sector, as of 31 March 2021.

Its core specialities 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 on net sales of Rs 761.31 crore for the nine months ended on 31 December 2021.