Multi-specialty pediatric hospital chain Rainbow Children’s Medicare Ltd. has fixed a price band of 516-542 per share for its initial public offering (IPO). The three-day initial share sale will be open for public subscription during next week, April 27-29, and bidding for anchor investors will open on April 26.
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. at the upper end of the price band, Rainbow Children Medicare IPO hope to bring 1,581 crore.
As per market observers, Rainbow Children Medicare is available at a premium of share (GMP) 50 today in gray market. The equity shares of the company are expected to be listed on the major stock exchanges BSE and NSE on May 20, 2022.
The company proposes to utilize the net proceeds from the new issue IPO for expeditious redemption of non-convertible debentures (NCDs) issued in full by the company; Capital expenditure for setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
Rainbow’s main specialties are pediatrics, which includes neonatal and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi-organ transplantation), and obstetrics and gynecology, which includes general and complex obstetric care, Includes multi-disciplinary fetal care. Perinatal genetic and reproductive care.
As of December 20, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India with a total bed capacity of 1,500 beds. Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities is the Book Running Lead Manager of the issue.