Rainbow Children’s Medicare Limited IPO : Financials and IPO Details

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 :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Rainbow Children’s Medicare Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. 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.