The IPO of Rainbow Group was subscribed 12.43 times as of 29 April 2022 or the closing day. It comprises a total of 25,49,00,439 bids against an offer of 2,05,14,617 equity shares to its investors, based on the official portal of NSE. With the offer for sale in this public issue, Dinesh Kumar Chirla, Padma Kancharla, Ramesh Kancharla, CDC India, and British International Investment PLC are divesting their shares.
Rainbow Children’s Medicare Limited is a renowned hospital chain that specialises in gynaecology, obstetrics, and paediatrics. It operates 3 clinics and 14 facilities in 6 cities − NCR, Chennai, Vijayawada, Visakhapatnam, Bengaluru and Hyderabad. The main facility of 250 beds and 4 other hospitals with 25 to 50 beds are located in Hyderabad. The company aims to include two more hospitals within the coming two years.
In this IPO, the price range is between Rs. 516 – Rs. 542 apiece. The lead managers of the issue are JP Morgan India, Kotak Mahindra Capital Company and IIFL Securities.
Day 3 Performance Status of Rainbow Children’s Medicare IPO
On 27 April 2022, the much-awaited public issue of Rainbow Group hit the Indian market. Go through the following pointers to know about the total number of shares reserved and subscribed against this offer under the various investment quotas:
- QIBs (Qualified Institutional Buyers) bid for 22,46,97,591 shares against a reservation of 57,75,605 shares.
- NIIs (Non-Institutional Investors) subscribed for 1,61,62,740 shares against an offer of 43,31,704 equity shares.
- RIIs (Retail Individual Investors) have a reservation of 1,01,07,308 shares under which they bid for 1,39,47,984 shares.
- Further, employees subscribed for 92,124 shares against an offer of 3,00,000 equity shares.
Here is the chart that illustrates the number of times employees, RIIs, NIIs and QIBs subscribed to the IPO of Rainbow Hospitals as of 29 April 2022:
| Investor Category | Employees | RIIs | NIIs | QIBs | Total |
| Subscription Status (in times) | 0.31 times | 1.38 times | 3.73 times | 38.90 times | 12.43 times |
The reservations for NIIs and RIIs are 15% and 35%, respectively. However, institutional investors qualify for half of the public offer.
A Quick Glance into the Rainbow Children’s Medicare IPO Anchor Allotment Status
On Tuesday, 26 April 2022, Rainbow Group finished the subscription for its anchor allocation. It received a favourable response from the anchor investors who participated via the procedure of book building.
As such, 36 anchor investors fetched an allotment of 86,63,404 equity shares. The overall allocation was worth Rs. 469.56 crores. Following is the list of the major anchor investors who attributed 61.69% of the total anchor allocation.
| Anchor Investor | Value Allocated (in Rs. crores) | Anchor Portion | No. of Shares |
| Baroda BNP Multi Cap Fund | 20.02 | 4.26% | 369,036 |
| DSP Small Cap Fund | 20.02 | 4.26% | 369,036 |
| Birla Sun Life Small Cap Fund | 20.02 | 4.26% | 369,036 |
| HDFC Life Insurance | 20.02 | 4.26% | 369,036 |
| Nippon India Pharma Fund | 24.24 | 5.16% | 447,228 |
| Ashoka India Opportunities Fund | 32.09 | 6.83% | 592,056 |
| Government of Singapore | 35.40 | 7.54% | 653,076 |
| Neuberger Berman EM Equity | 37.09 | 7.90% | 684,342 |
| Amansa Holdings Private Limited | 40.41 | 8.61% | 745,478 |
| SBI Healthcare Opportunities Fund | 40.41 | 8.61% | 745,478 |
Through this pre-IPO round, the anchor response stood at 29.70% of the overall issue size. The allotment for 18 mutual fund schemes against 9 AMCs has been 38.97 lakh equity shares. In addition, the allocation for mutual funds covers 44.99% of the total anchor allocation.
Day 1 and Day 2 Status of Rainbow Children’s Medicare IPO
| Investor Category | Employees | RIIs | NIIs | QIBs | Total |
| Day 1 | 0.07 times | 0.48 times | 0.11 times | 0.10 times | 0.29 times |
| Day 2 | 0.14 times | 0.82 times | 0.56 times | 0.10 times | 0.55 times |
Final Thoughts
Rainbow Hospitals primarily focus on child care and multi-speciality paediatric services. The target segment is likely to expand at a 14% CAGR till Fiscal 2026. With a sustained growth trajectory in the midst of rising consolidation in margin profile and healthcare space, the company will flourish.
Highly qualified and experienced medical practitioners are available 24×7 in their hospitals. The company conducts outpatient consultations using video conferencing platforms to extend its reach in India and abroad. Further, it maintains a healthy margin expansion and strong revenue.
Individuals who want to invest in Rainbow Group can open an easy-to-use Demat account with the Angel One app/portal through an instant and streamlined process. Follow Angel One blogs for more stock market, IPO, and business news.
Frequently Asked Questions
What is the GMP for Rainbow Children’s Medicare?
The grey market premium (GMP) of Rainbow Hospitals stands at Rs. 30 on 28 April 2022.
What is the last date of subscription for the IPO of Rainbow Group?
The last date of subscription for the public offer of Rainbow Group is 29 April 2022.
What was the consolidated net profit of Rainbow Group in FY 21?
Rainbow Group reports a consolidated net profit of Rs. 39.57 crores in FY 21. Its turnover stands at Rs. 660.31 crores in FY 21.
Who are the listed peers of Rainbow Children’s Medicare?
Krishna Institute, Max Healthcare, Narayana Hrudayalaya, Fortis Healthcare, and Apollo Hospitals are the listed peers of Rainbow Hospitals.
How much dividend did Rainbow Group declare for FY 22?
Rainbow Group declared a 20% dividend for FY 22. It has distributed a 30% dividend for FY 20 and a 10% dividend for FY 19.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
