Rainbow Children’s Medicare Ltd. IPO

Rainbow Children's Medicare Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹542

Issue Price

Listing Price

₹506

Listing Price

Listing Gains

-₹36.00 (-6.64%)

Listing Gains

IPO Details

Bidding Dates

27 Apr - 29 Apr '22

Bidding Dates

Min. Investment

₹13,932

Min. Investment

Lot Size

27.00

Lot Size

Price Range

₹516 - ₹542

Price Range

Issue Size

1,505 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Rainbow Children's Medicare Ltd. IPO

  • Retail Individual Investor
    1.38x
  • Non-Institutional Investor
    3.73x
  • Qualified Institutional Buyers
    38.90x
  • Employees
    0.31x


About Rainbow Children's Medicare Ltd. IPO

The Rs 1,581-crore initial public offering (IPO) of Rainbow Children’s Medicare will open for subscription on April 27 and close on April 29. The price band for the issue is set in the range of Rs 516-542 per equity share. Rainbow Children’s Medicare IPO comprises fresh equity issuance of Rs 280 crore and an offer for sale (OFS) of 2.4 crore equity shares by existing shareholders and promoters. The IPO market lot size is 27 shares and a retail-individual investor can apply for up to 13 lots. Rainbow Children’s Medicare is an operator of a multi-speciality paediatric, obstetrics and gynaecology hospital chain in India. Its specialities are paediatrics, which includes new-born and paediatric intensive care, paediatric multi-specialty services, paediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic and fertility care. It operates 14 hospitals and three clinics in six cities, with a total capacity of 1,500 beds, as of September 30, 2021.

Financial Snapshot - Rainbow Children Medicare IPO

Financial Year Total Assets Total Revenues Profit After Tax
March 2019 Rs 926.39 crore Rs 551.14 crore Rs 44.59 crore
March 2020 Rs 1,019.24 crore Rs 729.74 crore Rs 55.34 crore
March 2021 Rs 1,081.27 crore Rs 660.31 crore Rs 39.57 crore


Important Dates - Rainbow Children’s Medicare IPO

Application opens on 27th April 2022
Last date of application 29th April 2022
Date of Allotment 5th May 2022
Refund begins from 6th May 2022
Credit of shares to Demat 9th May 2022
Listing date 10th May 2022

Why should you invest in Rainbow Children's Medicare Ltd. IPO?

Based on the 22 years of experience in operating paediatric hospitals providing tertiary new-born, paediatric intensive and paediatric sub specialty care, the company has a great opportunity to expand its quaternary care operations. The company’s hub and spoke model is financially optimal, as spokes are set up at lower cost. It plans to replicate this model across key cities and regions in the country.

Rainbow Children’s Medicare says it will continue to explore means to enhance performance efficiencies to reduce the cost of healthcare delivery so as to make it affordable for patients, and also contribute to the growth in its profitability.


SWOT Analysis - Rainbow Children's Medicare Ltd. IPO

Strength

Rainbow Children’s Medicare has also expanded its operations to include obstetrics and gynaecology services, whereby it offers comprehensive perinatal services to patients. Currently, five of its hospitals are accredited by National Accreditation Board for Hospitals & Healthcare Providers (NABH) and three are certified by EDGE (Excellence in Design for Greater Efficiencies).

It had the highest number of hospital beds amongst peers in the maternity and paediatric healthcare delivery sector, as of March 31, 2021. It also increased the scale of their reach to patients through a robust digital ecosystem.

Weakness

The company’s business is subject to seasonality. Some of its group companies have incurred losses in the last three financial years. Meanwhile, inadequate health insurance in India also may adversely affect its business, results of operations and cash flows.

Opportunity

The company has a potential to strengthen tertiary and quaternary paediatric services in existing hospitals. It can grow presence through hub and spoke networks across key geographic clusters and new locations. 

Threat

Rainbow Children’s Medicare’s business depends on medical professionals and its inability to attract and retain such medical professionals poses a threat. Its revenues are highly dependent on hospitals in Hyderabad and Bengaluru. A prolonged COVID-19 pandemic can also affect regular business operations. Further, adverse regulatory changes in the healthcare industry and intense competition from other healthcare service providers also pose a threat to the business.


Competitive Analysis - Rainbow Children's Medicare Ltd. IPO

  1. Ability to conceptualize, create and operate specialized children’s hospitals
  2. Leading paediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases
  3. Comprehensive perinatal care provider, with synergies between paediatric and obstetrics and gynaecology services
  4. Hub-and-spoke model that provides synergies and ensures better care and access for patients
  5. Proven ability to attract, train and retain high-calibre medical professional
  6. Strong track record of growth, operational and financial performance
  7. Experienced senior management team with strong institutional shareholder support



How to apply for Rainbow Children's Medicare Ltd. IPO?

You can apply for the Rainbow Children's Medicare Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Rainbow Children's Medicare Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.

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Frequently Asked Questions (FAQs) - Rainbow Children's Medicare Ltd. IPO

What is Rainbow Children’s Medicare IPO size?

Rainbow Children’s Medicare IPO issue size is worth Rs 1,581 crore.

What are Rainbow Children’s Medicare IPO dates?

The public issue will open for subscription on April 27 and close on April 29.

What is the lot size and reserved portion for investors?

The company has reserved 50% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the balance 35% for retail investors.

The market lot size for Rainbow Children’s Medicare IPO is 27 shares. Retail investors can apply for up to 13 lots.

What is the share Allotment Date of Rainbow Children’s Medicare IPO?

The allotment of shares is expected to be finalised on May 5, 2022.

Who is the registrar for Rainbow Children’s Medicare IPO?

KFin Technologies is the registrar for this upcoming IPO.

Who are the merchant bankers to Rainbow Children’s Medicare IPO?

Kotak Mahindra Capital Company, JP Morgan India, and IIFL Securities are the book-running lead managers to the issue.

When will Rainbow Children’s Medicare get listed on exchanges?

Rainbow Children’s Medicare will list on BSE and NSE on May 10, 2022.

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