Business

Rainbow children’s medicare to open its IPO

The IPO Comprises a fresh issue of Rs. 280 crore and an offer for sale of 2.4 crore equity shares by promoters and investors.

Hyderabad: Rainbow Children’s medicare, a multi specialty paediatric, obstetrics and gynaecology hospital chain has fixed the price hand for its initial public offering (IPO) at Rs. 516-542 per share.  The IPO will run from April 27 to 29.

The IPO Comprises a fresh issue of Rs. 280 crore and an offer for sale of 2.4 crore equity shares by promoters and investors. 

The promoter, Chairman and Managing Director of Rainbow children’s Medicare Ramesh Kancharla said that the offer includes a reservation of upto three lakh shares for employees who will get equity at a discount of Rs. 20 to the final offer price. 

He along with other promoters Dinesh Kumar Chirla and Adarsh Kancharla will sell 87.26 lakh shares while British International Investment Plc (formerly CDC Group Plc) and CDC India will offload 1.46 crore shares. 

At the upper end of the price band, the IPO is sized at Rs. 1,580.8 crore, of which proceeds will be utilised for redemption of non-convertible debentures and capital expenditure on setting up new hospitals and purchase of medical equipment, besides general corporate purposes. 

The investors can bid for a minimum of 27 shares and in multiples of 27 thereafter.  Hence, retail investors can invest a minimum of Rs. 14,634 for a single lot and maximum Rs. 1,90,242 for 13 lots.

Rainbow operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds and had 641 full-time doctors and 1,947 part time. It had established its first paediatric specialty hospital in 1999 in Telangana, said the Chairman.  

Source
Munsif News Bureau

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