The IPO has a price band of ₹516 to ₹542 apiece. Further, the company offers a discount of ₹20 to eligible employees under the Employee Reservation Category.
The bid lot size is in 27 Equity Shares and multiples thereof. A retail investor is allowed to make a maximum subscription up to ₹2 lakh, while employees can bid up to ₹5 lakh at maximum.
The IPO size aggregates to around ₹1,580 crore.
Here are 10 key points of the Rainbow IPO.
1. The IPO comprises a fresh issue worth ₹280 crore. While the promoters and investors of the company will carry an offer for sale (OFS) of up to 2.4 crore equity shares amounting to around ₹1,300 crore.
2. The selling shareholders in the OFS are - promoters Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla, Padma Kancharla, and Dr. Adarsh Kancharla.While investors like British International Investment PLC and CDC India are also participating in the OFS.
3. Of the total IPO size - 50% portion is reserved for qualified institutional buyers (QIB), 15% is kept for non-institutional buyers (NII), and 35% is reserved for retail individual investors (RII).
4. Rainbow IPO has already garnered about ₹470 crore from anchor investors ahead of the opening of the issue. As per BSE data, somewhat 8,663,404 equity shares were allotted to the anchor investors at ₹542 apiece aggregating to ₹469.55 crore.
5. Companies like Kotak Mahindra Capital, JP Morgan, and IIFL Securities are acting as the book running lead managers for the issue.
6. Rainbow Children's Medicare is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021.
7. The company's revenue from operations for the nine months ended December 31, 2021, and the financial years 2021, 2020, and 2019 amounted to ₹7,613.11 million, ₹6,500.47 million, ₹7,193.91 million, and ₹5,427.92 million, respectively. For the same periods, its profit for the period amounted to ₹1,264.13 million, ₹395.68 million, ₹553.40 million, and ₹445.90 million, respectively. Adjusted EBITDA came in at ₹2,567.42 million, ₹1,628.34 million, ₹1,970.27 million and ₹1,485.14 million, respectively.
8. The company plans to build pediatric quaternary care services in cities like Bengaluru, Karnataka, Chennai, Tamil Nadu, and New Delhi-NCR, by hiring reputed, experienced, and skilled cardiac specialists in these cities. Also, it seeks to invest in specialized medical infrastructures such as cath labs, pediatric cardiac OT, and echocardiogram machines, which will enhance their capabilities in treating cardiac patients. Furthermore, the company is in the process of implementing an AI-enabled content management engine to support the application, which will be able to process large amounts of patient data to provide them with insight into patient needs.
9. Rainbow has a strong track record in terms of delivery volumes. It has grown from 10,632 deliveries in the financial year 2019 to 12,582 and 13,287 in the financial years 2020 and 2021, respectively, recording a CAGR of 11.79%. The company's delivery volume for the nine months ended December 31, 2021, was 10,826. As a result of its unique full-time doctor engagement model and teamwork, approximately 85.00% of its deliveries are done by full-time in-house doctors. Going forward, the company is focused on providing comprehensive obstetrics and gynecology services at all our current and future hospitals, which will help them in enhancing their patient and revenue base.
10. Over the next five financial years, the paediatric market is expected to expand against strong growth factors. CRISIL Research expects paediatric healthcare market to grow by CAGR of 13% between the financial years 2020 and 2026. The market grew by a CAGR of 12% between the financial years 2016 and 2020.
