Rainbow Children's Medicare IPO
Rainbow Children's Medicare IPO — date, price band, lot size & details 2022
Rainbow Children's Medicare listed on 10 May 2022 at ₹510, 5.9% below the ₹542 issue price.
Rainbow Children's Medicare runs a multi-specialty paediatric and obstetrics and gynaecology hospital chain. It had 14 hospitals and three clinics in six cities, with 1,500 beds, on 31 December 2021.
Stock price
Rainbow Children's Medicare is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 14 November.
- Open 27 Apr 2022
- Close 29 Apr 2022
- Allotment 05 May 2022
- Refund/credit 06 May 2022
- Listing 10 May 2022
Issue summary
The terms of the offer, as filed.
| IPO Dates | 27 to 29 Apr, 2022 |
|---|---|
| Price Band | ₹516 – ₹542 |
| Face Value | ₹10 |
| Lot Size | 27 Shares |
| Issue Size | ₹1580.85 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Employee Discount | Rs 20.00 per share |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 14,634 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 27 shares at the ₹542 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 27 | ₹14,634 |
| Retail (max) | 13 | 351 | ₹1,90,242 |
| S-HNI (min) | 14 | 378 | ₹2,04,876 |
| S-HNI (max) | 68 | 1,836 | ₹9,95,112 |
| B-HNI (min) | 69 | 1,863 | ₹10,09,746 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 5
- 01Total income rose from Rs 551.14 crore in FY2019 to Rs 774.06 crore in the nine months to 31 December 2021.
- 02Profit after tax was Rs 126.41 crore in the nine months to 31 December 2021, against Rs 39.57 crore in FY2021.
- 03Borrowing was low at Rs 40.69 crore on 31 December 2021, against net worth of Rs 589.40 crore.
- 04It had 1,500 beds across 14 hospitals, the most among comparable peers as per CRISIL.
- 05Rs 170.00 crore of the fresh issue was planned for new hospitals.
Risks · 5
- 01Rs 1,300.78 crore of the Rs 1,580.85 crore issue was offer for sale, so most of the money went to selling shareholders.
- 02The pre-issue P/E was 131.87 at the upper band of Rs 542, based on EPS of Rs 4.11.
- 03Total income fell from Rs 729.74 crore in FY2020 to Rs 660.31 crore in FY2021.
- 04A full-time doctor model raises fixed costs, which hurt when patient volumes fall. All 14 hospitals are in six cities.
- 05Promoters and the promoter group held 62.19% before the issue and 49.83% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Rainbow Children's Medicare offer document.
| Metric | 31 Dec 2021 | 31 Mar 2021 | 31 Mar 2020 | 31 Mar 2019 |
|---|---|---|---|---|
| Assets | 1,239.76 | 1,081.27 | 1,019.24 | 926.40 |
| Total Income | 774.06 | 660.31 | 729.74 | 551.14 |
| Profit After Tax | 126.41 | 39.57 | 55.34 | 44.59 |
| EBITDA | 269.49 | 173.10 | 207.37 | 156.87 |
| NET Worth | 589.40 | 445.47 | 404.51 | 371.26 |
| Reserves and Surplus | 485.30 | 391.46 | 350.50 | 317.25 |
| Total Borrowing | 40.69 | 47.97 | 57.68 | 52.64 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Rainbow Children's Medicare RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Rainbow Children's Medicare IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹4.11 | ₹16.61 |
| P/E Ratio (x) | 131.87 | 32.63 |
| Market Cap at Offer Price (₹ Cr) | ₹16,670.13 | ₹4,124.88 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹542 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹266.20 Cr of the issue is earmarked to named objects.
Rainbow Children's Medicare IPO Anchor Investors
36 anchor investors across 20 fund houses committed ₹469.55 Cr a day before the issue opened.
Anchor investors bid a day before the issue opens and are locked in after allotment, so a book weighted towards domestic mutual funds is generally read as a stronger signal than one filled by short-horizon funds. Browse every anchor investor scheme or fund house we track.
About the company
Its core specialties are paediatrics, including newborn and paediatric intensive care, paediatric multi-specialty services and quaternary care such as multi-organ transplants, and obstetrics and gynaecology, including complex obstetric care, foetal care, perinatal genetics and fertility care.
On 31 December 2021 it ran 14 hospitals and three clinics in six cities with 1,500 beds. As per CRISIL, it had the most beds among comparable maternity and paediatric players on 31 March 2021. It works on a full-time doctor model so core specialists are on hand round the clock.
The IPO was Rs 1,580.85 crore, with Rs 280.07 crore of fresh issue and Rs 1,300.78 crore of offer for sale. Rs 170.00 crore was planned for new hospitals and equipment and Rs 40.00 crore for redeeming NCDs.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Rainbow Children's Medicare IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
IIFL Capital Services Limited
146 issues handledBest listing: Unicommerce eSolutions (+117.6%). Weakest: ICICI Securities (-16.3%).
JP Morgan India Pvt. Ltd
41 issues handledBest listing: Premier Energies (+120.0%). Weakest: Nuvoco Vistas Corporation (-14.9%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Rainbow Children's Medicare?
The current Grey Market Premium is ₹10, or 2% over the issue price.
What is the Rainbow Children's Medicare IPO price band?
₹516 to ₹542, on a face value of ₹10.
When is the allotment?
The basis of allotment is 5 May 2022, with listing on 10 May 2022.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
