Bombay
Rainbow Children’s Medicare Ltd, a leading multi-disciplinary pediatric, obstetrics and gynecology hospital chain in India, has set the price range for its IPO of shares between ₹516 and ₹542 per share with a par value of ₹10.
The IPO of the Hyderabad-based company, which operates 14 hospitals and three clinics in six cities (Hyderabad, Bengaluru, Chennai, New Delhi, Vijayawada and Vishakhapatnam) with a total bed capacity of 1,500 beds, will open on December 31, 2021 on Wednesday, April 27, 2022, the company announced on Friday.
Bids can be made for a minimum of 27 shares and thereafter in multiples of 27.
The IPO will involve a total new issue of up to £2.80 billion and an offering of up to 24,000,900 shares by Promoter Selling Shareholders, Investor Selling Shareholders and other Selling Shareholders.
The offering also includes an employee reserve portion of up to 300,000 shares.
The Company proposes to use the net proceeds from the reissuance for the early redemption of NCDs issued by it to CDC Emerging Markets Ltd, one of its group companies, in the full amount of Rs. 40 crore; Capital expenditures for the establishment of new hospitals and the purchase of medical equipment for such new hospitals of Rs. 170 crore; and remainder for general corporate purposes.
Rainbow, founded by Dr. Ramesh Kancharla, follows a physician-involvement model, with most of his core specialists working exclusively in the hospitals on a full-time basis
“This model ensures that most of its core specialists are available around the clock on a roster basis at the hospitals, which is particularly important for pediatric emergency, neonatal and pediatric critical care services,” the company said.
