Rainbow Children’s Medicare Limited initiated its business operations in 1999. It is a multi-speciality obstetrics, paediatric and gynaecology hospital chain. The company currently has 14 hospitals across 6 locations. It also has a total bed capacity of 1500. The employee list of the company reflects 602 full time doctors and 1686 visiting or part time doctors.
IPO DETAILS
Rainbow Children’s Medicare Limited IPO is set to launch on 27th April, 2022. The subscription timeline extends till 29th April, 2022. The size for the IPO is 1595.59 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 280 Crore. Shares issued through Offer for sale are worth Rs. 1315.59 Crore. The lot size is 27 shares and the price range is 516 Rs. – 542 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 27th April, 2022 |
| CLOSING DATE FOR IPO | 29th April, 2022 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs. per share |
| IPO price band | 516 Rs. – 542 Rs. |
| LOT SIZE | 27 shares |
| MINIMUM ORDER QUANTITY | 27 shares |
| ISSUE SIZE | 1595.59 Crore Rs. |
| OFFER FOR SALE | 280 Crore Rs. |
| FRESH ISSUE | 1315.59 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 10th May, 2022 |
IMPORTANT DATES
| IPO OPENING DATE | 27th April, 2022 |
| CLOSING DATE FOR IPO | 29th April, 2022 |
| IPO ALLOTMENT DATE | 5th May, 2022 |
| REFUNDS | 6th May, 2022 |
| DEMAT A/C CREDITED ON | 9th May, 2022 |
| IPO LISTING DATE | 10th May, 2022 |
Rainbow Children’s Medicare Limited IPO begins for subscription from 27th April, 2022. The IPO subscription would continue till 29th April, 2022. The allotment status for the shareholders who applied would come on 5th May, 2022. The refunds for the ones who did not get allotment would be initiated on 6th May, 2022. The DEMAT accounts of shareholders would be credited on 9th May 2022. The listing of the company would be accompanied on 10th May, 2022.
Lead Managers And Promoters
The promoters of the company are Dr. Adarsh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Ramesh Kancharla.
The lead managers are :
- IIFL Securities Limited
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
The minimum lot size for the company is decided at 27 shares. This holding accounts to 14634 Rs.. The maximum lot size is decided at 351 shares. This amounts to 190242 Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 27 shares | 14634 Rs |
| Maximum | 351 shares | 190242 Rs. |
OBJECTIVES FOR THE IPO
- The funds can be utilised for General corporate purposes.
- The company also plans to utilise the money for further business growth purposes.
- The company wants to redeem the Non Convertible Debentures early.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | Dec. 2021 | 2020-21 | 2019-20 |
| ASSETS | 12398 | 10813 | 10193 |
| REVENUE | 7741 | 6603 | 7297 |
| NET PROFIT | 1264 | 396 | 553 |
Rainbow Children’s Medicare Limited has an asset base of 12400 Million Rs approximately by the end of year 2021. The company reported a revenue of 7740 Million Rs in Dec 2021 alongside a profit of 1264 Million Rs. These are very impressive figures. However the previous track record for the company was not convincingly good.
The company had a lost track record of growth as iot suffered from lower asset growth and less revenue and profit in 2021 March as compared to previous financial year. The reason is its recorded profit of approximately 400 Million Rs in 2021 as compared to 550 Million Rs in 2020. However the current situation says that it has again captured its track and could give better results in future.
PROS
- There are 14 hospitals present at 6 different locations in India.
- The bed capacity of the hospital chain is 1500 currently.
- It has the ability to treat specially abled children very well.
- It has a unique hub and spoke model which ensures the better treatment and care of its patients.
CONS
- COVID has hit the company. But given the nature of business it should benefit heavily from the same. But a reverse effect is noticed in the company’s financials.
Rainbow Children’s Medicare Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Rainbow Children’s Medicare Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
