Rainbow Children's Medicare's Rs. 2,000 crore IPO to open next week

The three-day initial share sale of multi-speciality pediatric hospital chain Rainbow Children's Medicare Ltd will open for public subscription next week on Wednesday, April 27.

The initial public offering (IPO) will conclude on Friday April 29, and the bidding for anchor investors will open next week on Monday, April 26.

The IPO comprises a fresh issue of equity shares aggregating up to Rs.280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders

The IPO size is expected to be more than Rs.2,000 crore, sources told.

Those selling shares in the OFS are 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 offer also includes a reservation of up to 3 lakh shares for subscription by eligible employees.

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

Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad. Since then, it has established its reputation as a leader in multi-speciality pediatric services, with strong clinical expertise in managing complex diseases.

As of December 20, 2021, Rainbow Children's Medicare operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.

Its core specialities are paediatrics, which includes newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care (including multi-organ transplants); and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.

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

The equity shares of the company are proposed to be listed on BSE and NSE.