Rainbow Children’s Medicare IPO listed on the BSE and NSE; Time and Price

Rainbow Children’s Medicare shares, a leading multi-specialty paediatric and gynaecology hospital network, debuted on May 10 at Rs 506, a 6.6 percent reduction to the issue price.

On the BSE, the stock began at Rs 506, versus an issue price of Rs 542, while the NSE’s listing price was Rs 510.

The quiet listing was to be expected, given the IPO’s lacklustre reaction from non-institutional and retail investors, despite robust support from qualified institutional purchasers. During the weekend of April 27-29, the public issue was subscribed 12.43 times.

Rainbow Children’s Medicare IPO GMP 

According to IPO Watch, the grey market premium for Rainbow Children’s Medicare was Rs 15 on May 9. In the grey market, Rainbow Children’s Medicare shares traded for Rs 552-557, a 2-3% premium to the issue price of Rs 542. Rainbow Children’s Medicare IPO’s modest grey market premium implies a shaky start.

Subscription Status for Rainbow Children’s Medicare IPO

According to statistics from the National Stock Exchange (NSE), the Rainbow Children’s Medicare IPO got over 25.49 crore bids against a total offering size of over 2.05 crore shares. Qualified institutional buyers (QIBs) received 38.90 percent of the shares available. Non-institutional investors received 3.73 times the number of subscriptions as retail individual investors (RIIs) was booked 1.38 times. The employees’ segment category was subscribed 0.31 times, the data showed.

What to Expect From Rainbow Children’s Medicare IPO

“We foresee an easy listing from Rainbow Children’s Medicare Limited IPO,” Yash Gupta, stock research analyst at Angel One Ltd, said of the company’s IPO. Based on 9MFY22 figures, the IPO is priced at a Price to Earn of 30.4 times and an EV/EBITDA of 13.8 times at the IPO’s upper price range, which is in line with a listed peer group. In 9MFY22, the business’s sales and return ratios rose dramatically, but we do not expect the company to sustain this growth in the near future.”

“The IPO of Rainbow Children Medicare Limited had a mediocre reaction. However, the QIB quota received a good reaction. The firm has maintained consistent results, and its value appears to be comparable to its peers. “As global market sentiments have deteriorated, the IPO may be unimpressive,” said Abhay Doshi, co-founder of UnlistedArena.

The specialized nature of the business, experienced management team, proven ability to attract, train, and retain high-calibre medical professionals, and under penetration of hospitals in India, according to Santosh Meena, Head of Research at Swastika Investmart, make this issue good for long-term investors.

The profit for the nine months ending December 2021 climbed significantly from Rs 38.53 crore in the previous financial year to Rs 126.41 crore. It’s possible that the significant increase in profitability in Q1 FY21-22 was related to Covid second wave admissions. As a result, Santosh Meena feels that this exponential increase in profit will not be sustained in the future.

DISCAILMER

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