Rainbow Children’s Medicare Limited – Globe Capital Market LTD.
Rainbow Children’s Medicare Limited
Closed
Price Band
Rs. 516 – 542
IPO Issue Period
Apr 27, 2022 to Apr 29, 2022
Issue Size
Rs. 1,580.85 Cr.
Face value
Rs. 10/-
Fresh issue
Rs. 280.00 Cr.
Offer for sale
1,300.85 Cr.
Minimum Shares for Retail
27 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFin Technologies Limited
Tentative Listing Date
May 10, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

Kotak Mahindra Capital Company Limited (Past IPO Performance)
J.P. Morgan India Private Limited (Past IPO Performance)
IIFL Securities Ltd (Past IPO Performance)

Rainbow Children’s Medicare Limited operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care. Rainbow Children’s Medicare operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of September 30, 2021. In 1999, the company started its first pediatric speciality hospital in Hyderabad.

Rainbow Children’s Medicare Limited operates on a full-time doctor model ensuring that most of the core specialists are available 24/7 which is particularly important for children’s emergency, neonatal and pediatric intensive care services. As of September 30, 2021, the company had 602 full-time doctors and 1,686 part-time/visiting doctors

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 761.31 650.05 719.39
Profit After Tax 126.41 39.57 55.34
EPS 13.39 4.36 5.98
OPM (%) 35.39% 26.62% 28.82%
PATM (%) 16.60% 6.09% 7.69%
  • Ability to conceptualize, create and operate specialized children’s hospitals.
  • Leading pediatric multi-speciality healthcare chain with strong clinical expertise in managing complex diseases.
  • Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynaecology services.
  • The hub-and-spoke model provides synergies and ensures better care and access for patients.
  • Strong track record of growth, and operational and financial performance.
  • Experienced senior management team with strong institutional shareholder support.
  • The 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.
  • General corporate purposes

At the upper band of Rs. 542, the IPO looks attractively priced. Hence, investors may consider investing in this issue for the medium to long term perspective.

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