Rainbow Childrens Medicare Ltd
listed
₹13,932Min. investment
Rainbow Childrens Medicare Ltd IPO Details
Issue size
₹1,581Cr
IPO type
Mainboard
Price range
₹516 – ₹542
Lot size
27 shares
RHP/DRHP
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Price range₹516 – ₹542
IPO type
Regular
Lot size27 shares
Issue size₹1,581Cr
RHP/DRHP
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Rainbow Children's Medicare IPO Details
In 1999, Rainbow Children's Medicare set up its first paediatric speciality hospital in Hyderabad. The hospital provided medical services round the clock, which is especially important for child care. It had also put in place a transport facility for patients.
This led to the rise in popularity of Rainbow Children’s Medicare. And soon “Rainbow became a destination of choice for young families, and this gave us the confidence to build bigger hospitals and multiple centres in Hyderabad," recalls Dr Ramesh Kancharla, the founder and promoter of Rainbow Children's Medicare. ****
Today, it is a leading multi-speciality paediatric, obstetrics and gynaecology hospital chain in India. It operates 14 hospitals and three clinics across six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021.
And now, the hospital chain is aiming to raise money by tapping into the equity markets. Rainbow Children's Medicare IPO will be open for subscription between 27 April 2022 and 29 April 2022.
All about the Rainbow Medicare IPO
As of March 2021, Rainbow Children’s Hospital has the highest number of hospital beds in the maternity and paediatric healthcare delivery category. It has 641 full-time doctors and 1,947 part-time/visiting doctors. The hospital chain has adopted a doctor engagement model. Basically, most of its core specialists work exclusively at its hospitals on a full-time retainer basis.
This model ensures that the core specialists are available 24/7, which is particularly important for children’s emergency, neonatal and paediatric intensive care services.
In Hyderabad, Rainbow Children’s Hospital has a hub-and-spoke model. Simply put, it has a main hospital in the city which supports four spokes – Secunderabad, LB Nagar, Kondapur and Hydernagar. This has helped it strengthen its position in and around Hyderabad and is also financially optimal. Hence, the hospital chain has initiated this model in Bengaluru and plans to replicate it in Chennai and New Delhi.
Financials
Revenue: 9.4%; Net Profit: -5.7% (FY19-21 CAGR)
| FY19| FY20| FY21
---|---|---|---
Revenue|543 crores|719 crores|650 crores
Net Profit|45 crores|55 crores|40 crores
****
Strengths
- The full-time doctor retention rate was at 81% between April 2019 and March 2021.
- Strong clinical expertise in managing complex diseases.
- A robust track record of growth, operational and financial performance.
- A favourable debt-to-equity ratio of 0.07x, as of December 2021.
- The average revenue per occupied bed increased to ₹40,893 in FY21 from ₹26,696 in 2019.
Risks
- In the first nine months of FY22, around 77% of patient volumes came from hospitals in Hyderabad and Bengaluru.
- A drop in occupancy rates due to a slowdown in medical tourism and deferring of elective surgeries.
- Operates in a highly regulated and competitive healthcare industry.
- Failure to achieve favourable pricing for medical consumables, pharmaceuticals and surgical instruments.
- Inadequate health insurance in India. The health insurance penetration stood at 37%, as of March 2020.
Good to know
Between FY20 and FY26, the paediatric market is expected to grow at 14% CAGR to ₹1.3 lakh crore. Increasing awareness about childcare and early diagnosis is expected to support the industry growth. Being a major player in this space, Rainbow Children’s Hospital can benefit from these favourable factors.
Frequently asked questions
How to invest in the Rainbow Childrens Medicare Ltd ?
Investors can apply for the Rainbow Childrens Medicare Ltd through their Demat account via the stock exchange or through their broker.
What is the issue size of Rainbow Childrens Medicare Ltd ?
The issue size of the Rainbow Childrens Medicare Ltd is 1581 Cr.
What is 'pre-apply' for Rainbow Childrens Medicare Ltd ?
Pre-applying for an IPO allows you to submit your application before the official subscription period begins.
Which exchanges will Rainbow Childrens Medicare Ltd shares list on?
The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.