Rainbow Children's Medicare IPO: GMP rises ahead of issue opening

Rainbow Children's Medicare IPO: GMP rises ahead of issue opening On April 27, 2022, Rainbow Children's Medicare IPO (Initial Public Offering) will o…

Shivani Bhati

Apr 25, 2022

Last update on Apr 25, 2022

Rainbow Children's Medicare IPO: GMP rises ahead of issue opening On April 27, 2022, Rainbow Children's Medicare IPO (Initial Public Offering) will open for subscription. The public issuance, valued Rs 1,595 crore, will be open until April 29th, 2022. As the issue's opening date approaches, the grey market has begun to send signals about the public offering. Rainbow Children's Medicare share price is currently quoting at a premium of $50 in grey market, according to market experts.

Rainbow Children's Medicare IPO GMP

According to market analysts, Rainbow Children's Medicare IPO grey market price (GMP) today is $50, up $15 from Sunday's grey market premium of $35. According to observers, the increase in GMP can be interpreted as a positive signal from the grey market, as secondary market sentiment has been negative for the past two years. Today's stock market opened in negative territory. They predicted that once the trend in the secondary market reversed, the price of Rainbow Children's Medicare shares would rise sharply in the grey market.

What this GMP stand for?

Rainbow Children's Medicare IPO GMP today is 50, implying that the grey market expects Rainbow Children's Medicare IPO to list at roughly 592 (542 + 50), which is around 9% higher than its upper price band of 542. Stock market analysts, on the other hand, cautioned IPO investors to base their investing decisions solely on GMP. They claimed the GMP data is unauthorized and unregulated. It has nothing to do with the financials of the organization. They recommended investors to look at the company's balance sheet for concrete fundamentals.

Abhay Doshi, Founder of UnlistedArena.com, commented on Rainbow Children's Medicare IPO, saying, "Rainbow Children Medicare Limited is India's leading multi-specialty hospital chain, with a total bed capacity of 1500 beds and a hub-and-spoke form of operation. "At the higher price band, pre-fresh issue, the asking PE comes around 128x and Market cap to revenue comes around 8x based on FY21 financials," he continues, "However, 9MFY22 performance seems to be exceptional." The asking prices are comparable to those of publicly traded companies. However, it would be interesting to see if the company can continue its 9MFY21 results in the future."