Rainbow Children’s Medicare files papers; eyes over Rs 2,000 crore via IPO

Hyderabad: Hyderabad-based Rainbow Children’s Medicare, a multi-specialty pediatric and obstetrics and gynecology hospital chain backed by UK-based CDC Group, has filed the draft red herring prospectus (DRHP) with the capital markets regulator SEBI with an aim to raise over Rs 2,000 crore through an initial public offering (IPO). The IPO comprises fresh issue of equity […]

Hyderabad: Hyderabad-based Rainbow Children’s Medicare, a multi-specialty pediatric and obstetrics and gynecology hospital chain backed by UK-based CDC Group, has filed the draft red herring prospectus (DRHP) with the capital markets regulator SEBI with an aim to raise over Rs 2,000 crore through an initial public offering (IPO).

The IPO comprises fresh issue of equity shares aggregating up to Rs 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 non-convertible debentures (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.

The Book Running Lead Managers to the offer are Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities.

Rainbow is specialised in 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.

The company established its first 50-bed pediatric specialty hospital in 1999 in Hyderabad, under the leadership of Dr Ramesh Kancharla. 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.

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