Rainbow Children’s Medicare Limited, a multi-specialty pediatric and obstetrics and gynecology hospital chain backed by UK-based development finance institution CDC Group plc, has filed the draft red herring prospectus (DRHP) with the capital markets regulator, SEBI to raise funds through an initial public offering (IPO).
According to market sources, the IPO size is expected to be more than Rs 2,000 crore.
The IPO comprises fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of upto 24,000,900 equity shares (upto 2.4 crore equity shares) by the selling shareholders.
The Company proposes to utilize the net proceeds from the fresh issue towards early redemption of NCDs issued by the Company, in full; Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
The offer also includes a reservation for subscription by eligible employees.
Rainbow is a multi-specialty pediatric care provider based on hospital beds, as of March 31, 2021. Its core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi organ transplants) ; and obstetrics and gynecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.
Rainbow established its first 50-bed pediatric specialty hospital in Hyderabad in 1999. As of September 30, 2021, under the leadership of its founding promoter Dr. Ramesh Kancharla, it operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.
The Book Running Lead Managers to the offer are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited and IIFL Securities Limited.
The equity shares are proposed to be listed on BSE and NSE.
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Published on: Monday, December 27, 2021, 02:22 PM IST