Rainbow Children’s Medicare Limited, a leading Indian multi-specialty pediatric and obstetrics and gynecology hospital chain backed by UK-based development finance institution CDC Group plc, has filed the draft red herring prospectus (DRHP) with the capital markets regulator, SEBI to raise funds through an initial public offering (IPO).
The Initial Public Offering comprises fresh issue of equity shares aggregating up to ₹280 crore and an offer sale of upto 24,000,900 equity shares (upto 2.4 crore equity shares) by the selling shareholders.
The Company proposes to utilise the net proceeds from the fresh issue towards early redemption of NCDs issued by the Company, in full; Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
The offer also includes a reservation for subscription by eligible employees.
Rainbow is one of India’s largest multi-specialty pediatric care providers based on hospital beds, as of March 31, 2021. Its 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, multi-disciplinary fetal care, perinatal genetic and fertility care.
Rainbow established its first 50-bed pediatric specialty hospital in 1999 in Hyderabad. Since then, under the leadership of its founding Promoter Dr. Ramesh Kancharla, it has established its reputation as a leader in multi-specialty pediatric services, with strong clinical expertise in managing complex diseases. As of September 30, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.
The Book Running Lead Managers to the offer are Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and IIFL Securities Limited.
The equity shares are proposed to be listed on BSE and NSE.
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