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Rainbow Children Medicare IPO

Rainbow Children’s Medicare Limited Logo

Rainbow Children Medicare (IPO) operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care. Rainbow Children’s Medicare operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of September 30, 2021. In 1999, the company started its first pediatric speciality hospital in Hyderabad.

Rainbow Children’s Medicare Limited operates on a full-time doctor model ensuring that most of the core specialists are available 24/7 which is particularly important for children’s emergency, neonatal and pediatric intensive care services. As of September 30, 2021, the company had 602 full-time doctors and 1,686 part-time/visiting doctors.

Competitive Strengths:

  1. Ability to conceptualize, create and operate specialized children’s hospitals.
  2. Leading pediatric multi-speciality healthcare chain with strong clinical expertise in managing complex diseases.
  3. Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynaecology services.
  4. The hub-and-spoke model provides synergies and ensures better care and access for patients.
  5. Strong track record of growth, and operational and financial performance.
  6. Experienced senior management team with strong institutional shareholder support.

Company Promoters:

Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Adarsh Kancharla are the company promoters.

Company Financials:

ParticularsFor the year/period ended (Rs in Millions)
Total Assets12,397.5610,762.2210,812.6710,192.379,263.96
Total Revenue7,740.624,942.936,603.107,297.375,511.44
Profit After Tax1,264.13385.25395.68553.40445.90

Objects of the Issue:

The company propose to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

  1. The Early redemption of NCDs issued by our Company, in full.
  2. Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals.
  3. General corporate purposes.

Rainbow Children Medicare IPO Details

IPO Opening DateApr 27, 2022
IPO Closing DateApr 29, 2022
Issue TypeBook Built Issue IPO
Face Value₹10 per equity share
IPO Price₹516 to ₹542 per equity share
Market Lot27 Shares
Min Order Quantity27 Shares
Listing AtBSE,NSE
Issue Size[.] Eq Shares of ₹10
(aggregating up to ₹1,580.85 Cr)
Fresh Issue[.] Eq Shares of ₹10
(aggregating up to ₹280.00 Cr)
Offer for Sale24,000,900 Eq Shares of ₹10
(aggregating up to ₹1,300.85 Cr)
QIB Shares Offered50% of the net offer
Retail Shares Offered35% of the net offer
NII (HNI) Shares Offered15% of the net offer

Rainbow Children Medicare IPO Tentative Timetable

The Rainbow Children Medicare IPO open date is Apr 27, 2022, and the close date is Apr 29, 2022. The issue may list on May 10, 2022.

IPO Open DateApr 27, 2022
IPO Close DateApr 29, 2022
Basis of Allotment DateMay 5, 2022
Initiation of RefundsMay 6, 2022
Credit of Shares to Demat AccountMay 9, 2022
IPO Listing DateMay 10, 2022

Rainbow Children Medicare IPO Lot Size

The Rainbow Children Medicare IPO market lot size is 27 shares. A retail-individual investor can apply for up to 13 lots (351 shares or ₹190,242).

ApplicationLotsSharesAmount (Cut-off)

Rainbow Children Medicare IPO Promoter Holding

Pre Issue Share Holding62.19%
Post Issue Share Holding49.83%

IPO Prospectus

Company Contact Information

Rainbow Children’s Medicare Limited
Survey No. 403,
Banjara Hills, Hyderabad – 500 034
Phone: + 91 40 49692244
Email: [email protected]

IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: [email protected]

IPO Reviews / Ratings

  • Axis Capital – Not Rated

IPO Lead Manager(s)

  1. Kotak Mahindra Capital Company Limited 
  2. J.P. Morgan India Private Limited
  3. IIFL Securities Ltd