Rainbow Children’s Medicare is all set to debut on the Dalal Street on May 10. The multi-specialty paediatric and gynaecology hospital will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on Tuesday. The Rs 1,580.84-crore public issue received a muted response from the investors during subscription period. Considering the volatile market and weak grey market premium, the experts predict a tepid listing for Rainbow Children’s Medicare IPO.
Incorporated in 1999 in Hyderabad, Rainbow Children’s Medicare one of the leading multi-specialty pediatric and obstetrics and gynecology hospital chains in India. The company operates 14 hospitals and 3 clinics in six cities with a total bed capacity of 1,500.
The initial public offer of Rainbow Children’s Medicare opened from April 27-29. The price band was fixed at Rs 516 to Rs 542 per equity share for the offer. The company aimed to garner Rs 1,580.84 crore through the public issue at the upper price band. Rainbow Children’s Medicare IPO comprised a fresh issue of shares aggregating to Rs 280 crore and an offer for sale (OFS) of up to 2.4 crore equity shares by promoters and investors.
Rainbow Children’s Medicare IPO GMP
The grey market premium of Rainbow Children’s Medicare was Rs 15 on May 9, according to IPO Watch. Rainbow Children’s Medicare shares traded at Rs 552-557 in the grey market, a 2-3 per cent premium over issue price of Rs 542. The meager grey market premium indicates a weak debut for Rainbow Children’s Medicare IPO.
Rainbow Children’s Medicare IPO Subscription Status
Rainbow Children’s Medicare IPO received bids of over 25.49 crore shares against the total issue size of over 2.05 crore shares, data available with the National Stock Exchange (NSE) showed. The shares allocated for the qualified institutional buyers (QIBs) was subscribed 38.90 times. Those of non institutional investors was subscribed 3.73 times and that of retail individual investors (RIIs) was booked 1.38 times. The employees’ segment category was subscribed 0.31 times, the data showed.
Rainbow Children’s Medicare IPO Listing: What to Expect
On listing of Rainbow Children’s Medicare, Yash Gupta-equity research analyst, Angel One Ltd said, “We expect a soft listing from Rainbow Children’s Medicare Limited IPO. Looking at the expensive valuation of the IPO, based on 9MFY22 numbers, the IPO is priced at a Price to Earn 30.4 times and EV/EBITDA of 13.8 times at the upper price band of the IPO, which is in line with a listed peer group. Companies’ revenue and return ratios have improved significantly in 9MFY22 but we don’t expect the company can maintain this growth in the near future.”
“Rainbow Children Medicare Limited IPO limited received a moderate response. The QIB quota, however, got a decent response.The company has delivered steady numbers and valuations looks in-line with peers. The listing may be lacklustered as broader market sentiments has deteriorated,” said Abhay Doshi, co-founder, UnlistedArena.
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