Rainbow Medicare IPO

Rainbow Children’s Medicare Limited is India ‘s top multi-specialty paediatric and obstetrics and gynaecology hospital group, with 14 hospitals and 3 clinics in 6 cities and a combined occupancy capacity of 1,500 beds as of September 30, 2021. Rainbow Medicare IPO will hit the stock market in 27 April 2022.

About Rainbow Medicare

They had the most hospital beds between similar competitors in the maternity and paediatric healthcare delivery sector.

Pediatrics, which includes newborn and paediatric intensive care, paediatric multi-specialty services, and paediatric quaternary care, and obstetrics and gynaecology, which encompasses regular and complex obstetric care, multi-disciplinary foetal care, and perinatal genetic and fertility care, are two of their core specialties.

In Hyderabad, they opened their first paediatric specialty hospital in 1999. Since then, they’ve earned a reputation as a leader in multi-specialty paediatric services, with excellent clinical experience, thanks to Dr. Ramesh Kancharla, their founding Promoter.

They’ve also expanded their offerings to encompass obstetrics and gynaecology, allowing them to provide patients with full perinatal care.

Business Model

Five of their hospitals are NABH recognised, and three of their hospitals are EDGE certified as at the date of this Draft Red Herring Prospectus. Their capacity to attract and keep high-quality medical personnel, they believe, has been critical to their company’s success.

They use a doctor engagement model in which the majority of their key experts work on a full-time retainer basis solely at their facilities. They have 602 full-time doctors and 1,686 part-time/visiting specialists.

This model guarantees that the majority of their key specialists are ready on a roster basis at their hospitals 24 hours a day, seven days a week, which is especially critical for emergency, neonatal, and paediatric intensive care treatments for children.

Team Members

They feel that their full-time doctor model, combined with a robust middle-grade doctor pool, offers consistent healthcare delivery throughout their facilities, resulting in high patient satisfaction.

A majority of their experts in neonatology, paediatric critical care, paediatric subspecialties, obstetrics and gynaecology, and obstetrics and gynaecology are trained or qualified in the United Kingdom, the United States, Canada, and Australia, giving them a competitive advantage.

They sign into two- to three-year retainership contracts with their recently recruited doctors, which gives them with consistency and makes them a desirable workplace.

They’ve implemented this doctor engagement strategy effectively throughout their hospitals, resulting in a high level of full-time doctor retention.

Rainbow Children’s Medicare IPO

Rainbow Children’s Medicare Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 280 Crores & 24,000,900 equity shares on 24 December 2021.

The offer includes a fresh issue of 280 crores and there is offer for sale (OFS) of 24,000,900 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now got for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1,179.77	1,081.27	1,019.24	926.40
Total Revenue	519.59	660.31	729.74	551.14
Profit After Tax	81.22	39.57	55.34	44.59

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	4.36	4.25	3
Financial Year 2020	5.98	5.92	2
Financial Year 2019	4.83	4.74	1
Weighted Average	4.98	4.89
30 Jun. 2021	8.78	8.62

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the key variables and organizational strengths that go into determining the Offer Price:

• Their capacity to design, build, and run specialist children’s hospitals.
• Leading paediatric multi-specialty healthcare organisation with extensive clinical experience in the treatment of difficult disorders.
• Pediatric, obstetrics, and gynaecologist treatments are included in one integrated perinatal care specialist.
• Patients benefit from a hub-and-spoke approach that creates synergies and ensures better care and access.
• Proven capacity to recruit, train, and retain top-tier medical talent.
• Significant growth, organizational, and financial performance track record.
• Top leadership team with deep expertise and significant institutional shareholder support.

Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Narayana Hrudalaya Limited	N/A
2	10	Max Healthcare Institute Limited	N/A
3	5	Apollo Hospitals Enterprise Limited	485.29
4	10	Fortis Healthcare Limited	N/A
5	10	Krishna Institute of Medical Sciences Limited	51.17

Note

1. On December 14, 2021, the closing BSE price of these equity shares was retrieved from the BSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Rainbow Medicare IPO Details

IPO Opening Date	27 April 2022
IPO Closing Date	29 April 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	516 to 542 per equity share
Market Lot	27 Shares
Min Amount	14,634
Listing At	BSE, NSE
Issue Size	1564.59 Crore
Fresh Issue	250 Crores
Offer for Sale	24,000,900 equity shares

Rainbow Hospitals IPO Date

Rainbow Children’s Medicare IPO opening date is 27 April 2022, and the closing date is 29 April 2022. The Rainbow Children’s Medicare issue may list in May 2022.

IPO Opening Date	27 April 2022
IPO Closing Date	29 April 2022
Basis of Allotment Date	05 May 2022
Initiation of Refunds	06 May 2022
Credit of Shares to Demat Account	09 May 2022
IPO Listing Date	10 May 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Rainbow Medicare IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Rainbow hospitals IPO.

Rainbow Children’s Medicare IPO GMP

Rainbow Children’s Medicare IPO Grey Market Premium is 14. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
07 May 2022	14	2100	200
06 May 2022	34	2400	250
05 May 2022	36	3200	300
04 May 2022	30	2900	250
03 May 2022	29	2300	200
02 May 2022	26	2300	250
01 May 2022	27	2100	200
30 April 2022	35	1800	200
29 April 2022	28	1600	200
28 April 2022	22	1200	100
27 April 2022	48	2100	2500
26 April 2022	54	2600	300
25 April 2022	60	3500	350
24 April 2022	52	0	0
23 April 2022	55	0	0
22 April 2022	65	0	0

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Rainbow Medicare IPO Review

Rainbow Medicare IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Rainbow IPO is good or bad.

Rainbow Hospitals IPO Risk

• The COVID-19 epidemic has had and will continue to have an impact on their normal business activities.
• They work in a regulated industry and must adhere to all applicable safety, health, environmental, labour, and other laws.
• The sustainability of their brand and reputation is critical to overall success.
• The challenges that the healthcare sector faces will have an impact on their business.
• Other healthcare service companies compete fiercely with them.
• The hospitals in Hyderabad and Bengaluru account for a large portion of their revenue.
• There has been no appraisal of the Offer’s items by any bank or financial organisation. Their financial needs and anticipated Net Proceeds deployment are based on management projections.

Other Threats

• Their healthcare service delivery strategy of hub-and-spoke may not be successful, which could have a negative impact on their business.
• Their capacity to provide inexpensive healthcare to their patients is contingent on their capacity to forecast, price, and manage healthcare expenses successfully.
• They may fail to defend their intellectual property rights, leaving them vulnerable to third-party allegations of misappropriation and infringement.
• Their indebtedness, as well as the terms and conditions of their financing arrangements, may limit their capacity to expand their business.
• The Company, its Promoters, its Subsidiaries, its Directors, and the Group Companies are all involved in ongoing legal processes. Any negative outcome could have a significant impact on their business.

Growth

They have strengthened their hospital network in recent times, increasing its number of beds from 1,162 beds on March 31, 2019 to 1,500 beds on September 30, 2021.

They expanded the number of hospitals from 10 to 14 within the same time period. They have tackled their network growth with financial caution and have been conservative in their capital investment decisions.

All of their capital investments are thoroughly considered and authorized by their knowledgeable Board of Directors.

Their way to maintain capital expenditures low has been a key factor in driving sustainable expansion in previous decades.

They may want to grow their hospital network in the future by purchasing brownfield properties or developing greenfield sites.

Rainbow IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Rainbow Medicare IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
28 April 2022	1	0.10	0.11	0.48	0.07	0.29
29 April 2022	2	0.10	0.56	0.82	0.14	0.55
30 April 2022	3	38.90	3.73	1.38	0.31	12.43

Management

Their management team is made up of highly educated and seasoned individuals. They feel that their strategic orientation will be guided by their vision, administration, focus on patient care, and adherence to solid corporate governance policies, which have all benefited to their great performance in the past.

Dr. Ramesh Kancharla, their original Promoter, Chairman, and Managing Director, leads their senior management team. He has over 23 years of expertise in the fields of paediatrics, paediatric gastroenterology, liver disorders, and liver transplantation in the United Kingdom and India.

One of their Promoters and Whole-Time Director, Dr. Dinesh Kumar Chirla, is a certified neonatologist. For the past seven years, he has served in children’s hospitals in Australia and the United Kingdom.

Promoters

• Dr. Ramesh Kancharla
• Dr. Dinesh Kumar Chirla
• Dr. Adarsh Kancharla

Promoter’s Holding

Pre Issue Share Holding	56.31%
Post Issue Share Holding

Rainbow Children’s Medicare Prospectus