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Rainbow Childrens Medicare IPO got a cool response from investors, got 29 percent subscription on the first day of the issue

According to NSE data, the IPO of Rainbow Childrens Medicare received bids for 59,62,896 shares on the first day, while there are 2,05,14,617 shares on offer.

Rainbow Childrens Medicare IPO: The IPO of Rainbow Children’s Medicare, the country’s leading multi-specialty pediatric and Guinea hospital chain, has received a cool response from investors on the first day. On the first day of subscription on Wednesday, this IPO has got only 29 percent subscription. As per NSE data, this IPO received bids for 59,62,896 shares, while there are 2,05,14,617 shares on offer. This issue will be open for subscription till April 29. On the first day of subscription, the retail individual investors (RII) share got 48 per cent subscription, while the non-institutional investors quota got 11 per cent and the qualified institutional buyers (QIB) segment got 10 per cent subscription.

IPO details

The multi-specialty pediatric hospital chain on Tuesday said it has raised around Rs 470 crore from anchor investors. According to the upper price band, this IPO is expected to fetch Rs 1,581 crore. A price band of Rs 516-542 has been kept for this issue. Under the IPO, new shares worth Rs 280 crore were issued, while existing shareholders would sell 2.4 crore shares under the offer for sale (OFS). Under the OFS, promoters Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh ​​Kancharla, promoter group entity Padma Kancharla and investors British International Investment Plc (formerly CDC Group Plc) and CDC India will sell the shares.

Details about the company

  • The UK’s Development Finance Institution CDC Group Plc’s Rainbow started India’s first 50-bed pediatric specialty hospital in Hyderabad in 1999. As of now, according to the data available till 20 December 2021, Rainbow has 14 hospitals and three clinics in six cities of the country. It operates 1500 beds. It provides services for all health problems related to children, problems related to pregnant women and fertility care.
  • Talking about the financial position, the company had a net profit of Rs 44.59 crore in the financial year 2018-19, which increased to Rs 55.34 crore in the next financial year 2019-20. However, in the next financial year 2020-21, it came down to Rs 39.57 crore. In the last financial year 2021-22, profits grew sharply and in April-December 2021, the net profit on a yearly basis increased from Rs 38.52 crore (net profit in April-December 2020) to Rs 126.41 crore in the same period.


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