Rainbow Children’s Medicare Limited, an Indian multi-specialty paediatric hospital network, has set a price band of Rs 516-542 per equity share with a face value of Rs 10 apiece for its initial public offering (IPO), which will open for subscription on April 27. Rainbow, established in Hyderabad, now operates 14 hospitals and three clinics with a total bed capacity of 1,500 beds in six cities: Hyderabad, Bangalore, Chennai, New Delhi, Vijayawada, and Visakhapatnam. Dr Ramesh Kancharla, Founder and Chairman and Managing Director of Rainbow Children’s Medicare, revealed during a press conference that the three-day IPO will finish on April 29. He indicated that bids can be made for a minimum of 27 Equity Shares and in multiples of 27 Equity Shares after that.
According to Dr Ramesh, the issuance of equity shares having a face value of Rs 10 includes a fresh issue of up to Rs 280 crore and an offer for sale of up to 24,000,900 equity shares by promoters, investors, and other selling shareholders. Employee Reservation Portion of up to 300,000 Equity Shares is also included in the offer, according to him. The Chairman stated that out of the Rs 280 crore proceeds from the fresh issue, Rs 170 crore will be used for capital expenditure to set up new hospitals and purchase medical equipment for such new hospitals, Rs 40 crore will be used to redeem NCDs, and the remaining amount will be used for general corporate purposes.
He stated that we intend to build 500 more beds in the next three years, with each bed costing on average Rs 60 lakhs. The hub and spoke strategy will be reproduced in Bengaluru, the National Capital Region, and Chennai, according to Dr Ramesh. According to him, revenue increased by 20% CAGR (Compound Annual Growth Rate) and there was no operational loss. The Book Running Lead Managers are Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, and IIFL Securities Limited. R R Gowrisankar, the company’s chief financial officer, and Mahesh Madduri, Rainbow Children’s Medicare Limited’s head of strategy, were also in attendance at the press conference.
