IPO Update: Rainbow Children’s Rs.2000 Crore IPO Opens Soon; Know Dates, Quota, Other Key Details

The fund attempts to capitalise on pre-IPO investment possibilities in Indian growth-stage companies.

Rainbow Children’s Medicare, a multi-specialty paediatric, obstetrics, and gynaecology hospital chain, will hold an initial public offering (IPO) from April 27 to 29. The company intends to allot shares on May 5 and list on May 10.

The IPO consists of a fresh offering of Rs.280 crore and a shareholder and promoter offer to sell up to 24 million shares.

Ramesh Kancharla, Dinesh Kumar Chirla, and Adarsh Kancharla, the company’s promoters, will sell shares. CDC Group and CDC India, two investors, will also sell their holdings.

A reserve of up to three lakh equity shares for the company’s employees is included in the sale.

The net proceeds from the new issue will be used for the full redemption of non-convertible debentures (NCDs) issued by the company, capital expenditures for the establishment of new hospitals and the purchase of medical equipment for such new hospitals, and general corporate purposes, according to the company.

Investing Managers & Listed Companies

The issue’s books running lead managers are Kotak Mahindra Capital Company, JP Morgan India, and IIFL Securities. The company’s equity shares are expected to be listed on the BSE and NSE.

There has been no established market for the company’s equity shares, according to the red herring prospectus, because this is the first public offering of its equity shares. “The equity shares have a face value of Rs 10.”

About the Company 

As of December 20, 2021, Rainbow maintains 14 hospitals and three clinics in six cities around the country, with a total bed capacity of 1,500 beds. The company is funded by the CDC Group, a development finance institution based in the United Kingdom.

In Hyderabad, it opened its first 50-bed paediatric specialist hospital in 1999. It has since earned a reputation as a leader in multi-specialty paediatric services, with a strong clinical skill in the management of complex disorders.

Paediatrics, which includes newborn and paediatric intensive care, paediatric multi-specialty services, and paediatric quaternary care (including multi-organ transplants), and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary foetal care, and perinatal genetic and fertility care, are two of the hospital’s core specialties.