Joining the flurry of raising funds through initial share sale, Rainbow Children’s Medicare Ltd., a multi-specialty pediatric hospital chain, has submitted preliminary papers with market regulator Securities and Exchange Board of India (SEBI). 2,000 crore through one Initial Public Offering (IPO),
Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric specialty hospital in Hyderabad in 1999. Since then, it has established its reputation as a leader in multi-specialty pediatric services, with strong clinical expertise in the management of complex diseases.
IPO size expected to exceed 2,000 crore, reported PTI Quoting market sources
Public issue involves a fresh issue of equity shares, totaling up to 280 crore and the sale of an offer of 2.4 crore equity shares by the selling shareholders. Promoters Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla and investors CDC Group, will sell the shares through CDC India OFS.
Rainbow Children proposes to use the net proceeds from the new issue toward the full redemption of non-convertible debentures (NCDs) issued by the Medicare Company; Capital expenditure for setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
As of September 30, 2021, Rainbow operates 14 hospitals and three clinics with a total bed capacity of 1,500 beds across six cities in India.
Its main specialties are pediatrics, which includes neonatal and pediatric intensive care, pediatric multispecialty services, pediatric quaternary care (including multi organ transplant); and obstetrics and gynecology, including general and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and reproductive care.
(with inputs from PTI)
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