Rainbow Children’s Medicare IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: May 10, 2022One of the leading hospitals present in India in the form of Rainbow Children’s Medicare is approaching the market to welcome it to the stock exchange.
Rainbow Children’s IPO is going to be a Book built issue comprising of a Fresh Issue and an Offer for Sale.
In this Rainbow Children’s IPO Review, we will be comprehending aspects like the background of the company, products or/and services offered, its promoters and management, its financial statements, information regarding the IPO including IPO date, its price and size, subscription and allotment status, GMP and much more.
| Face Value | Rs 10 |
| Price Band | Rs. 516 to Rs. 542 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 27 Shares |
| Listing Date | May 10, 2022 |
| Offer for Sale | Rs.1,300.85 Crore |
| Fresh Issue | Rs.280 Crore |
| IPO Size | Rs.1580.85 Crore |
| Tick Size | 1 |
Rainbow Children’s Medicare IPO Overview
The multi-specialty hospital chain Rainbow Children’s Medicare Limited is a leading entity in the sector. They specialize in pediatric care and are centered on child care, women’s care, and fertility care.
Through Rainbow Children’s IPO, the company will be raising funds worth over Rs.1,580.85 crore. The IPO comprises of Fresh Issue and Offer for Sale.
Rainbow Children’s Medicare IPO Important Dates
| Events | Date |
| IPO Opening Date | Apr 27, 2022 |
| IPO Closing Date | Apr 29, 2022 |
| Basis of Allotment Finalization | May 5, 2022 |
| Refunds Initiation | May 6, 2022 |
| Credit of Shares to Demat Account | May 9, 2022 |
| Share Listing Date | May 10, 2022 |
In December 2021, Rainbow Children’s Medicare filed preliminary documents with SEBI for seeking its approval to float its Rs.1,580.85 crore IPO.
Rainbow Children’s IPO Date has been declared by the company. The company is looking for an IPO so that it can proceed further with the IPO.
In between the IPO opening and closing dates, investors will be placing their bids for seeking successful allotment of shares. The IPO will be open for a minimum of 3 days subject to a maximum of 10 days.
Rainbow Children’s Medicare IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs.516 to Rs.542 |
| Offer for Sale | Rs.1,300.85 Crore |
| Fresh Issue | Rs.280 Crore |
| IPO Size | Rs.1,580.85 Crore |
Rainbow Children’s IPO Size will be about Rs.1,580.85 Crore. Of which about Rs. 280 crore will be raised through a Fresh Issue of equity shares and the rest will be raised through the Offer for Sale for Rs.1,300.85 Crore equity shares by the selling shareholders.
Rainbow Children’s IPO Price will be determined by the Book Building Process where the company will provide a price band and a minimum lot to investors and the respective investors will place their bids according to the stipulated price band.
Rainbow Children’s Medicare IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 10th May 2022 | Rs.15 | Rs.300 | Rs.600 |
| 9th May 2022 | Rs.15 | Rs.300 | Rs.600 |
| 7th May 2022 | Rs.20 | Rs.300 | Rs.600 |
| 6th May 2022 | Rs.30 | Rs.300 | Rs.600 |
| 5th May 2022 | Rs.40 | Rs.300 | Rs.600 |
| 4th May 2022 | Rs.40 | Rs.300 | Rs.600 |
| 3rd May 2022 | Rs.40 | Rs.300 | Rs.600 |
| 2nd May 2022 | Rs.40 | Rs.300 | Rs.600 |
| 30th April 2022 | Rs.30 | Rs.300 | Rs.600 |
| 29th April 2022 | Rs.30 | Rs.300 | Rs.600 |
| 28th April 2022 | Rs.30 | Rs.300 | Rs.600 |
| 27th April 2022 | Rs.20 | Rs.300 | Rs.600 |
| 26th April 2022 | Rs.50 | Rs.300 | Rs.600 |
| 25th April 2022 | Rs.50 | Rs.300 | Rs.600 |
| 23rd April 2022 | Rs.50 | NA | NA |
| 22nd April 2022 | Rs.50 | NA | NA |
| 21st April 2022 | Rs.50 | NA | NA |
| 20th April 2022 | NA | NA | NA |
Grey market Premium is the amount above the issue price at which the share of the issuer company are traded in the grey market. This takes place before the listing of the shares on the stock exchange.
Rainbow Children’s IPO GMP will be available after the IPO date and other specifications are declared by the company for dissemination in the general public. Grey Market Premium not only helps investors but also underwriters to estimate the price of the shares.
Rainbow Children’s Medicare IPO Subscription Status
| Day / Date | QIB | NII | RII | EMP | Total Subscription |
| 1st Day – 27th April | 0.10x | 0.11x | 0.48x | 0.07x | 0.29x |
| 2nd Day – 28th April | 0.10x | 0.56x | 0.82x | 0.14x | 0.55x |
| 3rd Day – 29th April | 38.90x | 3.73x | 1.38x | 0.31x | 12.43x |
| Shares Offered or Net Issue | 5,775,605 | 4,331,704 | 10,107,308 | 300,000 | 20,514,617 |
The Initial Public Offering (IPO) of Rainbow Children’s Medicare Limited is not open for subscription till now. Subscription is a vital step where the prospective shareholders of the company bid within the price band range through the ASBA process.
Rainbow Children’s IPO Subscription period is not determined upto now. The proposed shares of the company will be listed on BSE and NSE.
The Lead Managers of the issue are:
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- IIFL Securities Limited
The details in respect of the price band and subscription is Live now.
Rainbow Children’s Medicare IPO Allotment Status
The basis of Rainbow Children’s IPO Allotment will be determined after the subscription process.
The Book Running Lead Managers for the issue are:
- Kotak Mahindra Capital Company Limited
- P. Morgan India Private Limited
- IIFL Securities Limited
The registrar to the issue is KFin Technologies Private Limited.
Rainbow Children’s Medicare IPO Live Performance
After the IPO is live, investors will be able to track Rainbow Children’s IPO Performance from here easily on a single click. You can easily check the changes in Rainbow Children’s IPO Price.
Subscribe to Rainbow Children’s Medicare IPO – Open Free Demat Account Now!
Latest Rainbow Children IPO News
The awaited Rainbow Children IPO News is here. The entity is all ready to welcome bids from investors in respect of its IPO. The IPO will open on 27th April and will remain open till 29th April.
Rainbow Children is hoping to garner funds of about Rs. 1,580.85 crores from the upcoming IPO.
The price band in regards to the IPO is between Rs. 516-542 per share. The bids can be placed in lot and each lot will be of 27 shares.
Rainbow Children’s Medicare – Company Review
Rainbow Children’s Medicare Limited commenced its operations in the year 1998 as a private limited company and has converted its status to a public company in 2021.
Listing amongst the notable multi-specialty obstetrics, pediatric, and gynecology hospital chains present in India, Rainbow Children’s Medicare has been playing a crucial role.
Presently this hospital chain has its presence with 14 hospitals and 3 clinics located in six cities. They have a strong capacity of about 1,500 beds which is the highest as compared to other entities operating in the same healthcare delivery sector.
In 1999, the company set up its first pediatric specialty hospital in Hyderabad. And in the past two decades has expanded to obstetrics and gynecology services.
Products or Services
Rainbow Children specializes in pediatrics care which involves newborn and pediatric intensive care, multi-specialty services, pediatric quaternary care, and services about obstetrics and gynecology.
They also offer comprehensive perinatal services to patients.
Under the leadership of Dr. Ramesh Kancharla, the company has achieved immense success and growth. Rainbow Children’s has risen as a multi-specialty pediatric services entity with excellent expertise in handling complex diseases.
Rainbow Children’s maintains a high employee retaining rate. Amongst their staff, they had 602 full-time doctors and 1,686 part-time/visiting doctors till September 2021. Specialist doctors are available 24/7 in the hospital on a roaster basis.
Promoters and Holding
The Promoters of Rainbow Children’s Medicare Limited are:
- Ramesh kancharla
- Dinesh Kumar chiral
- Adarsh kancharla
The management of the company comprises of the following:
- Ramesh kancharla holds the position of Chairman and Managing Director
- Dinesh Kumar Chirla holds the position of Whole-time Director
- Aluri Srinivasa Rao holds the position of Independent Director
- Anil Dhawan holds the position of Independent Director
- Sundari Raviprasad Pisupati holds the position of Independent Director
- Santanu Mukherjee holds the position of Independent Director
- R Gowrisankar holds the position of Chief Financial Officer
- Ashish Kapil holds the position of Company Secretary and Compliance Officer
Is Rainbow Children good for Investment?
Rainbow Children’s Medicare Limited is a multi-specialty pediatric, obstetrics, and gynecology hospital chain widely spread with its 14 hospitals and 3 clinics in 6 cities. The company is operating for the past two decades. They are women and child-centered clinical experts managing complex diseases.
As per the company, one of their strongest aspects is the 24/7 availability of specialized doctors which ensures that the patients and their issues are addressed timely and efficiently.
They have a distinct ability to conceptualize, create and operate their facilities. They are one of the leaders in the sector in terms of capacity and widespread.
Now, the company has proposed its Rainbow Children’s IPO to garner funds from the public and raise over Rs.1,580.85 crores.
Rainbow Children’s Medicare Financial Statements
| Amount (in INR & Million) | |||||
| 31-Dec-21 | 31-Dec-20 | 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Assets | 12,397.56 | 10,762.22 | 10,812.67 | 10,192.37 | 9,263.96 |
| Revenue | 7,740.62 | 4,942.93 | 6,603.10 | 7,297.37 | 5,511.44 |
| Expense | 6,024.75 | 4,400.92 | 6,046.14 | 6,363.81 | 4,936.18 |
| Profit After Tax | 1,264.13 | 385.25 | 395.68 | 553.40 | 445.90 |
Alongside working towards a good cause and effecting people’s lives, Rainbow Children’s also maintains positive outcomes in terms of profits.
In the financial year 2020-21, the company made a profit of 395.68 million from a total revenue of 6,603.10 million.
And in nine months of FY 2021 ended December 2021, the revenues stood at 7,740.62 million and the profit for the same period was 1,264.13 million.
| Earnings per Equity Share (in Million) | |||||
| 31-Dec-21 | 31-Dec-20 | 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Basic | 13.39 | 4.22 | 4.36 | 5.98 | 4.83 |
| Diluted | 13.12 | 4.12 | 4.25 | 5.92 | 4.74 |
The EPS of Rainbow Children’s has though shown a downward slope from Rs. 5.98 in FY 2020 to Rs. 4.36 in FY 2021.
The Rainbow Children’s IPO will probably bring the company in a better state and will reap good results for the investors.
Rainbow Children’s Medicare IPO Review
The over Rs.1,580.85 crore Rainbow Children’s IPO is a combination of a Fresh Issue worth Rs. 280 crore and an Offer for Sale of 1,300.85 crore equity shares.
The company will be employing the funds from the fresh issue towards redemption of non-convertible debentures (NCDs) issued by the company and towards upscaling its operations through enhancing its hospital and equipment capacity.
The company operates in a specialized branch of hospitals and has attained a high prominence over the years.
As per the DRHP, five hospitals of the company are accredited by NABH and three of their hospitals are certified by EDGE.
Rainbow Children’s Medicare IPO Details
Here are a few more details you need to know before investing in Rainbow Children’s Medicare IPO –
Rainbow Children’s Medicare IPO Issue Object
Rainbow Children’s Medicare has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Early redemption of NCDs issued by our 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 Children’s Medicare IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Our ability to conceptualize, create and operate specialized children’s hospitals;
- Leading pediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases;
- Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynecology services;
- Hub-and-spoke model that provides synergies and ensures better care and access for patients;
- Proven ability to attract, train and retain high-caliber medical professionals;
- Strong track record of growth, operational and financial performance; and
- Experienced senior management team with strong institutional shareholder support
Quantitative factors are:
| Basic EPS | Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 4.36 | 4.25 | 8.88 | 48.82 |
| 31-Mar-20 | 5.98 | 5.92 | 13.68 | – |
| Mar-19 | 4.83 | 4.74 | 12.01 | – |
Rainbow Children’s Medicare IPO Lead Managers
Here are the list of Lead managers –
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- IIFL Securities Limited
Rainbow Children’s Medicare IPO Registrar to offer
Check out the details of the registrar here –
KFin Technologies Private Limited (formerly known as Karvy Fintech Private Limited)
Selenium, Tower-B Plot 31 and 32, Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Telephone: +91 40 6716 2222
E-mail: rcml.ipo@kfintech.com
Website: www.kfintech.com
Investor Grievance ID: einward.ris@kfintech.com
Contact Person: M Murali Krishna
SEBI Registration Number: INR000000221
Rainbow Children’s Medicare IPO – Other Details
- Statutory Auditor – B S R & Associates LLP
- Legal Counsel to the Company – AZB & Partners
- Bankers to the Company – Bank of Baroda, Axis Bank Ltd, and HDFC Bank Ltd
Rainbow Children IPO Verdict by Stock Brokers
As per some of the experts and reliable reviewing resources, Rainbow Children IPO will create a right set of circumstances for the investors. Investors can invest in the IPO with the long term investment motive.
This hospital chain has a wide spread over and specializes in child health care services. And the hospital sector is booming with time. Also, the IPO is been introduced to venture their growth plans.
Rainbow Children’s Medicare IPO – Conclusion
The company has a long-term business experience, comprised by a strong, knowledgeable, and experienced group of experts in their respective areas.
Rainbow Children’s started with just pediatric solutions in 1999 and today has expanded to an extensive level.
The company is making progress and strengthening its surface with the right set of people and resources. Investors can consider investing in Rainbow Children’s IPO for long terms growth.
To Subscribe to Rainbow Children’s Medicare IPO – Open Demat Account Now!
Rainbow Children’s Medicare IPO Review FAQs
Check out the FAQs on Rainbow Children’s Medicare IPO –
What is the Issue Size of Rainbow Children’s Medicare IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Rainbow Children’s Medicare IPO?
The price band for this particular IPO ranges between Rs.516 to RS.542. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Rainbow Children IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Apr 27, 2022, while the closing date is set at Apr 29, 2022.
What is the Rainbow Children’s Medicare IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on May 5, 2022, refund initiation is on May 6, 2022, credit of shares is on May 9, 2022, and share listing date is on May 10, 2022.
What is the Rainbow Children’s Medicare IPO Listing Date?
Shares of this company shall be listed in the exchanges May 10, 2022. The date, when the listing would be done, is stagnant on May 10, 2022.
Who is the Registrar of Rainbow Children IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Private Limited (formerly known as Karvy Fintech Private Limited). Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Rainbow Children’s Medicare IPO?
Here are the promoters of this IPO – DR. RAMESH KANCHARLA, DR. DINESH KUMAR CHIRLA, AND DR. ADARSH KANCHARLA. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Rainbow Children IPO?
They have obtained the GMP of this IPO and it is Rs.15. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Rainbow Children’s Medicare IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Rainbow Children’s Medicare Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2021 in Million is 395.68, 2020 is 553.40, 2019 is 445.90. PAT from Dec 2021 is 1264.13.
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