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All that you should know about the Company before applying for the IPO.

April 26, 2022     

The public issue of equity shares of Rainbow Childrens Medicare Limited will open for subscription on April 27, 2022 and closes on April 29, 2022. It is expected to list on the stock exchanges on May 10, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Established in 1999 in Hyderabad (Telangana), the Company is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and 3 clinics in six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021. It had the highest number of hospital beds amongst comparable players in the maternity and pediatric healthcare delivery sector, as of March 31, 2021 (a CRISIL Report). 5 of its hospitals are accredited by NABH and 3 of its hospitals are certified by EDGE.

Company’s core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.

The Company follows a hub-and-spoke model in Hyderabad, Telangana with its Banjara Hills hospital being the hub and four spokes at four locations in Hyderabad (Secunderabad, LB Nagar, Kondapur and Hydernagar). It also has hub hospitals in Bengaluru, Chennai, Tamil Nadu and New Delhi-NCR. The Company follows a doctor engagement model whereby most of its core specialists work exclusively at its hospitals on a full-time retainer basis. As of December 31, 2021, the Company had 641 full-time doctors and 1,947 part time/visiting doctors.

Who are the Promoters of the Company?

Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla & Dr. Adarsh Kancharla

Positives about the Company

  • Company's 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
  • Experienced senior management team with strong institutional shareholder support

Who are its key competitors?

  • Apollo Hospitals Enterprise Limited
  • Fortis Healthcare Limited
  • Narayana Hrudalaya Limited
  • Max Healthcare Institute Limited
  • Krishna Institute of Medical Sciences Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Early redemption of NCDs issued by the Company to CDC Emerging Markets Limited, one of its Group Companies, in full
  • Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals
  • General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

IPO Size ₹ 1,580.85 Crore *
Offer Mix Fresh Issue ₹ 280 Crore + Offer For Sale ₹ 1,300.85 Crore*
Price Band ₹ 516 - ₹ 542
Lot Size 27 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,634 (1 lot) | Max. ₹ 1,90,242 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar KFin Technologies Limited
Discount ₹ 20 per equity share for Eligible Employees Category only
Cut-off time for UPI Mandate Confirmation 02-May-2022 (up to 12:00 PM)
* at upper price band

Category Wise Availability *

QIB ₹ 782.30 Crore
(50% of Net Issue Size)
NIB ₹ 234.69 Crore
(15% of Net Issue Size)
Retail ₹ 547.60 Crore
(35% of Net Issue Size)
Employee Reservation Portion ₹ 16.26 Crore
(3,00,000 Equity Shares)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens April 27, 2022
IPO Closes April 29, 2022
Finalization of the basis of allotment May 05, 2022
Unblocking of funds / Initiation of refunds May 06, 2022
Credit of equity shares to Demat accounts May 09, 2022
Listing of equity shares May 10, 2022
Source: Company RHP
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