Multi-speciality pediatric hospital chain Rainbow Children’s Medicare Ltd on Friday said it has fixed a price band of Rs 516-542 a share for its Rs 1,581-crore initial public offering (IPO).
The-three day initial share sale will be open for public subscription during April 27-29, and the bidding for anchor investors will open on April 26, according to the company. The public issue comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale (OFS) of up to 2.4 crore equity shares by promoters and investors.
Those selling shares in the OFS are promoters — Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors — British International Investment plc (formerly known as CDC Group plc) and CDC India. The company proposes to utilise the net proceeds from the fresh issue for early redemption of non-convertible debentures (NCDs) issued by the company in full; capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
At the upper end of the price band, the public issue is expected to fetch Rs 1,581 crore. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The offer also includes a reservation of up to 3 lakh shares for employees, who will receive shares at a discount of Rs 20 to the final offer price. Investors can bid for a minimum of 27 equity shares and in multiples thereof.
Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad. Since then, it has established its reputation as a leader in multi-speciality pediatric services, with strong clinical expertise in managing complex diseases.
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. Its core specialities are paediatrics, which includes newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care (including multi-organ transplants); and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.