Rainbow Children’s Medicare Ltd (RCML) will raise Rs 1,581 crore through an initial public offering (IPO) . The price band for the IPO has been fixed at Rs 516-542 per equity share. The face value is Rs 10 per equity share. The subscription for the IPO will open on April 27 and end on April 29.
The issue comprise of fresh issue of equity shares aggregating to Rs 2800 million and an offer for sale (OFS) of up to 24 million equity shares by promoters and existing shareholders of the company.
Rainbow Children’s Medicare is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India. It has 14 hospitals and 3 clinics in six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021.
The company’s core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic and fertility care.
Rainbow follows a doctor engagement model whereby most of its core specialists work exclusively at our hospitals on a full-time retainer basis. This model ensures the specialists are available 24/7 on a roster basis at their hospitals, which is important for children’s emergency, neonatal and pediatric intensive care services. As of December 31, 2021, we had 641 full-time doctors and 1,947 part time/visiting doctors.
In its red herring prospectus, the company said that it may seek to expand its hospital network through acquisition of brownfield assets or development of greenfield assets depending upon the location of the hospital and the time period required to complete the project.
The company plans to increase the scale of their reach to patients through a robust digital ecosystem. During peak coronavirus time, i.e., between April 1, 2020 and March 31, 2021, Rainbow conducted over 125,000 outpatient video consultations through its video consultation platform.
The company believes that there is a potential to establish a hybrid model of healthcare delivery, which allows them to provide outpatient consultations through virtual means and subsequent inpatient admissions, if needed, at its network hospitals. The company is in the process of building a digital healthcare delivery solution that enables healthcare delivery irrespective of geography.
For the year/period ended (Rs in millions) except %
Profit After Tax
- Leading pediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases.
- Demonstrated ability to conceptualize, create and operate specialized children’s hospitals.
- Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynecology services.
- Hub-and-spoke model that provides better care and access for patients.
- Proven ability to attract, train and retain high-quality medical professionals.
- Strong track record of growth, operational and financial performance.
- Experienced senior management team with strong institutional shareholder support.
Purpose of the IPO
- Early redemption of NCDs issued by Rainbow to CDC Emerging Markets Limited (“CDCEML”), one of the Group Companies, totalling Rs 400 million.
- Capex towards setting up of new hospitals and purchase of medical equipment for new hospitals aggregating to Rs 1,700 million.
- General corporate purposes.
Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Adarsh Kancharla are the promoters of the company.
IPO Opening Date
IPO Closing Date
Book Built Issue IPO
Rs 10 per equity share
Rs 516 to Rs 542 per equity share
Minimum Order Quantity
IPO Lot Size