Multi-specialty pediatric hospital chain Rainbow Children’s Medicare has extended around According to the exchange update, Rs 470 crore from anchor investors before the opening of the IPO yesterday.
About 87 lakh shares were allotted to anchor investors 542 per equity share, the upper end of the price band. Rainbow Children Medicare Limited has fixed a price band of 516-542 One Share For 1,581 crore IPO.
The three-day initial share sale will be open for public subscription during April 27-29.
Public issue involves a fresh issue of equity shares, totaling up to 280 crore and offer sale (OFS) of 2.4 crore equity shares by promoters and investors.
The sellers of shares in the OFS include promoters- Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors- British International Investment plc (formerly known as CDC Group plc) and CDC India.
The Company proposes to utilize the net proceeds from the fresh issue for early redemption of Non-Convertible Debentures (NCDs) issued by the Company; Capital expenditure for setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
At the upper end of the price band, the public issue is expected 1,581 crore.
Half of the issue size has been reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
The offer also includes reservation of up to 3 lakh shares for employees, who will receive shares at a discount 20 up to the final offer price.
Investors can bid in a minimum of 27 equity shares and multiples thereof.
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.
As of December 20, 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 multi-specialty 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.
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities is the Book Running Lead Manager of the issue.
The equity shares are proposed to be listed on BSE and NSE.