Rainbow Children’s Medicare initial public offering (IPO) is all set to hit the market. Know GMP, price, review, other key details
Rainbow Children’s Medicare IPO: Rainbow Children’s Medicare initial public offering (IPO) is all set to hit the market. The subscription will open on April 27, 2022. The public issue worth Rs 1,595 crore will remain open till April 29, 2022. The company offers services such as pediatric multi-speciality services, obstetrics and gynaecology, newborn and pediatric intensive care, and pediatric quaternary care. The IPO has an issue size of Rs 1,580 crore. Out of the total, the IPO has a fresh issue of Rs 280 crore. The IPO has an offer for sale of Rs 1,300.85 crore.
Rainbow Children’s Medicare IPO GMP
As per the market observers, Rainbow Children’s Medicare IPO grey market premium (GMP) today is Rs 50, which is Rs 15 higher from its Sunday’s grey market premium of Rs 35. Observers said that rise in GMP can be taken as a good signal from the grey market as secondary market sentiment has been negative for last two sessions and today stock market has opened in red territory. They said that there would sharp upside movement in Rainbow Children’s Medicare share price in grey market once there is trend reversal in secondary market. In last few days, Rainbow Children’s Medicare IPO GMP had dipped from Rs 53 to Rs 35. So, today’s rise is expected to give relief to those who are planning to invest in the public issue. Rainbow Children’s Medicare IPO GMP today is Rs 50, which means grey market is expecting Rainbow Children’s Medicare IPO to list around Rs 592 ( Rs 542 + Rs 50), which is around 9 per cent higher from its upper price band of Rs 542 per equity share.
However, stock market analysts warned IPO investors to make investment decision only on the basis of GMP. They said that GMP is unofficial and non-regulated data. It has nothing to do with the company’s financials. They advised investors to look at the concrete fundamentals available in balance sheet of the company.
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Rainbow Children’s Medicare IPO Rationale
Rainbow Children’s Medicare will utilise the net proceeds from the fresh issue on capital expenditure to set up new hospitals and purchase medical equipment for such new hospitals; for early redemption of non-convertible debentures (NCDs) issued by the company in full; and for general corporate purposes, it said.
It is a South India-based multispecialty pediatric, obstetrics and gynecology hospital chain. Rainbow Children’s Medicare is one of its newborn baby-focused hospital chains in India. The company has 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multispeciality services, pediatric quaternary care, obstetrics and gynecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care.
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Rainbow Children’s Medicare IPO Should You Invest?
Santosh Meena, Head of Research, Swastika Investmart Ltd. on Rainbow Children’s Medicare Ltd., said: “Rainbow Children’s Medicare Ltd. (RCML) is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India. They have followed a financially disciplined model, focusing on cost-effective growth. Going forward, they may seek to expand their hospital network through the acquisition of Brownfield assets or the development of Greenfield assets. This issue is a combo of OFS & fresh issue and is priced at a PE of 43.53 on the is of annualized FY 22 numbers.”
“The profitability for 9 months ended 31st December 2021 increased substantially to 126.41 crores from 38.53 crores in the same period of last fiscal. There might be a possibility that this sudden spurt in profitability was due to covid second wave hospitalizations in Q1 FY21-22. Thus we believe that this exponential rise in profit might not continue in the future. However, the specialized nature of the business, experienced management team, proven ability to attract, train and retain high-caliber medical professionals, under penetration of hospitals in India, make this issue good for long-term investors,” Meena said
