Rainbow Children's Medicare IPO

Rainbow Children's Medicare Ltd.

₹13,932 /27 sharesMinimum Investment

Rainbow Children's Medicare IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹542.00₹510.00-₹32.00 (5.90%)

Rainbow Children's Medicare IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
27 Apr ‘22 - 29 Apr ‘22₹13,93227₹516 - ₹542
Issue SizeIPO Doc
1581.00Cr
RHP PDF

Subscription Status As on 29 Apr '22, 5:00 PM

  • Retail Individual Investor
    1.38x
  • Non-Institutional Investor
    3.73x
  • Qualified Institutional Buyers
    38.90x
  • Employees
    0.31x
  • Total
    12.43x

About Rainbow Children's Medicare

Rainbow Children's Medicare is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India. It operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as per the latest information available. The IPO includes a fresh issue portion and an offer for sale. The net proceeds of the fresh issue portion may be used for early redemption of Non-Convertible Debentures (NCDs) issued by the company, in full, and capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals. ;
Parent Organisation
Rainbow Children's Medicare Ltd.
Founded
1998
Managing Director
Ramesh Kancharla
Detailed IPO Analysis: Rainbow Children's Medicare | Should you apply for Rainbow Children's IPO?

Strengths & Risks

  • Specialization in pediatric care.
  • Presence across various specialties such as neurology, nephrology, gastroenterology, oncology, and cardiology.
  • Extensive transportation network in and around Hyderabad - in the financial year 2021, the company transported 796 long-distance patients to its hospitals in Hyderabad.
  • As per CRISIL Research, among the key players in the maternity and pediatric healthcare delivery sector, Rainbow Children’s Medicare had the highest number of hospital beds, as of March 31, 2021.*
  • Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynecology services.
  • Doctor engagement model whereby most of the core specialists work exclusively at its hospitals on a full-time retainer basis.
  • Over the last six years, the company has added 985 beds across 10 hospitals and expanded its presence from two cities to six cities.
  • Nine of the company’s hospitals are recognized by the National Board of Examination (“DNB”), the Indian Association of Pediatrics (“IAP”), and the National Neonatology Forum (“NNF”) for training doctors in pediatric, neonatology, pediatric subspecialties, obstetrics, and gynecology.
  • High dependence on the skills, efforts, and experience of medical professionals - inability in attracting and retaining such medical professionals can affect the business.
  • Engagement of doctors primarily on a consultancy service contract basis - no assurance that the doctors will not prematurely terminate their agreements.
  • Non-compliance with applicable safety, health, environmental, labour, and other regulations, or failure to obtain or renew approvals, licenses, registrations, and permits, may adversely affect the business,
  • Intense competition from other healthcare service providers.
  • Revenues are highly dependent on hospitals in Hyderabad and Bengaluru - of the total 14 hospitals, six are situated in Hyderabad and three are situated in Bengaluru.
  • The company has made applications for the registration of the word mark “Birth Right” in Tamil, Kannada, and English. However, a third party, Nextline Diagnostics LLP has opposed the registration of these trademarks in India.
  • As of September 30, 2021, the company’s borrowings (current and non-current) amounted to Rs 42.73 crore on a consolidated basis.
  • The company outsources some of its service functions to third-party contractors - any lapse by such third-party service contractors may have adverse consequences on the business and reputation.
  • Outstanding legal proceedings involving the company, its promoters, subsidiaries, directors, and its group companies.
  • The company has in the past entered into related party transactions and will continue to do so in the future - there is no assurance that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.
  • The business is affected by seasonality and the company typically has fewer patient visits during the months of March to May.
  • *the CRISIL report was commissioned and paid for by the company in relation to the Offer.

Financials

*All values are in Rs. Cr
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