IPO has a price band of from 516 542 each. In addition, the company offers discounts 20 to the eligible employees under employee reservation category.
The size of the bid lot is in 27 equity shares and multiples thereof. Maximum contribution a retail investor is allowed to make 2 lakh, while the employee . can bid up to Maximum 5 lakhs.
Overall size of IPO approx. 1,580 crores.
Here are 10 key points of Rainbow IPO.
1. IPO consists of a new issue whose value is 280 crores. While the promoters and investors of the company will make an offer for sale (OFS) of about 2.4 crore equity shares. 1,300 crores.
2. The sold shareholders in OFS are – Promoters Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirala, Padma Kancharla and Dr. Adarsh Kancharla. While investors such as British International Investment Plc and CDC India are also participating in the OFS.
3. Of the total IPO size – 50% is reserved for Qualified Institutional Buyers (QIBs), 15% is earmarked for Non-Institutional Buyers (NIIs), and 35% is reserved for Retail Individual Investors (RIIs).
4. Rainbow IPO Already Conquered 470 crore from anchor investors before the issue opens. As per BSE data, a handful of 8,663,404 equity shares were allotted to anchor investors Overall 542 469.55 crores.
5. Companies like Kotak Mahindra Capital, JP Morgan and IIFL Securities are acting as Book Running Lead Managers for the issue.
6. Rainbow Children Medicare is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities with a total capacity of 1,500 beds as of December 31, 2021.
7. What was the company’s revenue from operations for the nine months ended 31st December, 2021 and the financial years 2021, 2020 and 2019? 7,613.11 million, 6,500.47 million, 7,193.91 million, and 5,427.92 million respectively. For the same period, its profit for the period was 1,264.13 million, 395.68 million, 553.40 million, and 445.90 million respectively. Adjusted EBITDA came in 2,567.42 million, 1,628.34 million, 1,970.27 million and 1,485.14 million respectively.
8. The company is planning to build Pediatric Quaternary Care Services in cities like Bengaluru, Karnataka, Chennai, Tamil Nadu and New Delhi-NCR by hiring reputed, experienced and skilled Cardiologists in these cities. In addition, it is looking to invest in specialized medical infrastructure such as cath labs, pediatric cardiac OTs, and echocardiogram machines, which will enhance their capabilities in treating heart patients. In addition, the company is in the process of implementing an AI-enabled content management engine to support the application, which will be able to process large amounts of patient data to provide insights into patient needs.
9. Rainbow has a strong track record in terms of delivery volumes. This has increased from 10,632 deliveries in FY 2019 to 12,582 and 13,287 in FY 2020 and 2021 respectively, registering a CAGR of 11.79%. The company’s delivery volume for the nine months ended December 31, 2021 was 10,826. As a result of its unique full time doctor engagement model and teamwork, approximately 85.00% of its deliveries are done by full time in-house doctors. Going forward, the company is focused on providing comprehensive obstetrics and gynecology services to all our current and future hospitals, which will help them grow their patient and revenue base.
10. In the next five financial years, the Pediatrics market is expected to expand on the back of strong growth factors. CRISIL Research expects the pediatric health market to grow at a CAGR of 13% between fiscal years 2020 and 2026. The market has grown at a CAGR of 12% between the financial years 2016 and 2020.