Last day to subscribe to Rainbow Children's Medicare, GMP at ₹30

• In the first two days, children’s hospital Rainbow Children’s Medicare has been subscribed 54%.
• The IPO includes a fresh issue of equity shares up to ₹280 crore and an offer sale of up to 2.4 crore shares.
• Shares of the company are commanding a premium of ₹30 in the grey market, which has increased from ₹15 earlier.

Today, April 29, is the last day to subscribe to the initial public offering (IPO) of Rainbow Children's Medicare, which is a Hyderabad-based chain of paediatric hospitals.

In the first two days of the subscription process, the IPO received a tepid response from investors as it was oversubscribed by 0.54 times.

The IPO includes a fresh issue of equity shares up to ₹280 crore and an offer sale of up to 2.4 crore shares.
The multi-specialty paediatric, obstetrics and gynaecology hospital chain operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.

The hospital chain has 602 full-time doctors and 1,686 part-time/visiting doctors. The firm believes in a full-time doctor model for high degree of patient satisfaction.

Going forward, it seeks to expand the hospital network and is in the process of building a digital healthcare delivery solution that enables healthcare delivery irrespective of geography.

Grey market premium of the company’s shares have gone up to ₹30 from ₹15 earlier.

Most analysts have recommended subscribing to the IPO because of a focused children-centric approach and decent valuation.
“The profitability for 9 months ended 31st December 2021 increased substantially to ₹126.41 crore from ₹38.53 crores in the same period of last fiscal. There might be a possibility that this sudden spurt in profitability was due to COVID second wave hospitalisations in Q1 FY 21-22. Thus we believe that this exponential rise in profit might not continue in the future. However, the specialised nature of the business, experienced management team, proven ability to attract, train and retain high-calibre medical professionals, under penetration of hospitals in India, make this issue good for long-term investors,” said Santosh Meena, head of research at Swastika Investmart.

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