IPO : Rainbow Children’s Medicare Limited

Rainbow Children’s Medicare Limited operates a multi-speciality paediatric, obstetrics and gynaecology hospital chain in India. The company offers a wide range of services such as newborn and paediatric intensive care, paediatric multi-speciality services, paediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care. Rainbow Children’s Medicare operates 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of September 30, 2021. In 1999, the company started its first paediatric speciality hospital in Hyderabad.

Rainbow Children’s Medicare Limited operates on a full-time doctor model ensuring that most of the core specialists are available 24/7 which is particularly important for children’s emergency, neonatal and paediatric intensive care services. As of September 30, 2021, the company had 602 full-time doctors and 1,686 part-time/visiting doctors.

Competitive Strengths:

  1. Ability to conceptualize, create and operate specialized children’s hospitals.
  2. Leading paediatric multi-speciality healthcare chain with strong clinical expertise in managing complex diseases.
  3. Comprehensive perinatal care provider, with synergies between paediatric and obstetrics and gynaecology services.
  4. The hub-and-spoke model provides synergies and ensures better care and access for patients.
  5. Strong track record of growth, operational and financial performance.
  6. Experienced senior management team with strong institutional shareholder support.

Objectives of the Issue:

The company propose to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

  1. The Early redemption of non-convertible debentures (NCDs) issued by our Company, in full.
  2. Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals.
  3. General corporate purposes.

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