Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Livemint
Livemint
Business
Livemint

Rainbow Children's Medicare shares plunge after listing at discount

The Bombay Stock Exchange (BSE)

“The company’s muted listing can be attributed to volatile and negative market sentiments and a lack of investor interest in hospital businesses. The company has a specialized nature of business, an experienced management team, proven ability to attract, train and retain high-caliber medical professionals, but the hospital is a highly competitive business and normalization of profitability post covid makes it suitable only for aggressive investors for the long term. Those who applied for listing gains can maintain a stop loss of 500," said Santosh Meena, Head of Research, Swastika Investmart Ltd.​

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.

Rainbow Childrens Medicare, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad. As of December 20, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.