Multi-speciality hospital chain Rainbow Children’s Medicare has decided to launch its IPO or initial public offering. The hospital chain works in paediatrics, gynaecology and obstetrics. It has filed its DRHP (Draft Red Herring Prospectus) papers with the market regulator SEBI (Securities and Exchange Board of India).
To know more about this IPO and all its details, read below!
Key Highlights of the Rainbow Children’s Medicare DRHP
- The Initial Public Offer will consist of an offer forsale and a new issue of equity shares.
- The fresh issue of shares will amount up to Rs. 280 crores and theoffer for sale will comprise4 crore equity shares.
- Promoters who will beselling shares in this public offering are:
- Ramesh Kancharla
- Dinesh Kumar Chirla
- Adarsh Kancharla
- CDC Group
- CDC India
- Moreover, the offer of sale includes a reservation ofthree lakh equity shares for employees of this company.
What Will the Proceeds of the IPO Be Used for?
Rainbow Children’s Medicare will use the proceeds of the IPO for the following reasons:
- Premature redemption of NDCs
- Capital expenditure for the setting up of new hospitals
- Purchase of equipment for these new hospitals
- General corporate requirements
Know About Rainbow Children’s Medicare
Presently, Rainbow Children’s Medicare operates in 6 cities. The company has 14 hospitals and 3 clinics. It also has a total bed capacity of 1,500 beds. As of March 2021, this hospital has the largest number of beds compared to its competitors in the sector of maternity and paediatric delivery.
The core specialities of this hospital include:
- Fertility care
- Paediatric multi-speciality services
- Obstetrics and gynaecology, including complex and normal obstetric care
- Paediatric quaternary care (including multi-organ transplants)
- Multi-disciplinary fetal care
- Paediatrics including newborn and paediatric intensive care
- Perinatal genetic
Rainbow Children’s Medicare is a profit-making entity. It has made a profit of Rs. 39.56 crores in the year March 2021. Therefore, if you want to invest in this IPO, do so only after proper research and study.
Frequently Asked Questions
- Who are the book running lead managers?
Ans. Kotak Mahindra Capital Company, JP Morgan India, and IIFL Securities are the book running lead managers.
- How much stake is held by promoters?
Ans. A 63.70 per cent stake is held by promoters of the company.
- What is the revenue of the company as of September 2021?
Ans. Revenue increased to Rs. 512.55 crores for this company.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.