Multi-specialty pediatric hospital chain Rainbow Children’s Medicare Ltd announced on Friday that it had set a price range of Rs 516-542 per share for its initial public offering (IPO) of Rs 1,581 crore.
The initial three-day stock sale will open for public subscription from April 27-29, and the tender for anchor investors will open on April 26, according to the company.
The public offering includes a new issue of capital shares aggregating up to Rs 280 crore and an offer for sale (OFS) of up to 2.4 crore capital shares by promoters and investors.
The sellers of SFO shares are the promoters – Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and the investors – British International Investment plc (formerly known as CDC Group plc) and CDC India.
The company proposes to use the net proceeds of the new issue for the prepayment of the non-convertible debentures (NCD) issued by the company in their entirety; capital expenditures for the establishment of new hospitals and the purchase of medical equipment for these new hospitals; and general business purposes.
At the upper end of the price range, public issuance is expected to reach Rs 1,581 crore.
Half of the issue size was reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.
The offer also includes a reservation of up to 3 lakh shares for employees, who will receive shares at a discount of Rs 20 from the final offer price.
Investors can bid for a minimum of 27 shares and multiples thereof.
Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed specialist pediatric hospital in 1999 in Hyderabad. Since then, he has established his reputation as a leader in multi-specialty pediatric services, with strong clinical expertise in the management of complex diseases.
As of December 20, 2021, Rainbow operated 14 hospitals and three clinics across six cities in India, with a total bed capacity of 1,500 beds.
Its main specialties are pediatrics, which includes neonatal and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multiple organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic care, and fertility care.
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the lead managers of the issue.
The shares are proposed to be listed on the BSE and the NSE.