Rainbow Children's Medicare shares plunge after listing at discount

Shares of Rainbow Children's Medicare Limited made their stock market debut on Tuesday with the scrip listing at ₹510 apiece on the NSE, a discount of about 6% as compared to its IPO issue price of ₹542 per share. 

The stock fell further to ₹482 within minutes after listing. On the BSE, Rainbow Children's Medicare shares started trading at ₹506.

The three-day initial public offering (IPO) of Rainbow Children's Medicare Limited had opened for subscription on April 27 and conclude on April 29.

The issue oversubscribed by 12.43 times on the last day of the bidding, driven by qualified institutional buyers (QIB).

The IPO, comprised fresh issue aggregating up to ₹280 crore and an offer for sale of up to 2,40,00,900 equity shares, had a price range of ₹516-542 apiece.

Ahead of its initial share sale, the multi-speciality pediatric hospital chain said it garnered nearly ₹470 crore from anchor investors.

The company proposes to utilise the net proceeds from the fresh issue for early redemption of non-convertible debentures in full, capital expenditure towards setting up of new hospitals and purchase of medical equipment, and general corporate purposes.