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.
Rainbow Children’s Medicare IPO details
- Start date: 27 April 2022
- End date: 29 April 2022
- Price band: ₹516-₹542 per share
- Minimum investment: ₹14,634
- IPO size: ₹1,581 crore
Timeline
- Allotment: 5 May 2022
- Refund: 6 May 2022
- Credit of equity shares: 9 May 2022
- Listing: 10 May 2022
All about the 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)
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.
FAQs
How can you pre-apply for the Rainbow Children’s Medicare IPO?
Pre-applying for the Rainbow Children’s Medicare IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for the Campus IPO on Upstox.
When does pre-apply for the Rainbow Children’s Medicare IPO open and how can you pay for it?
You can pre-apply for the Rainbow Children’s Medicare IPO from 26 April 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.
How can you apply for the Rainbow Children’s Medicare IPO?
Click here to apply for the Rainbow Children’s Medicare IPO on Upstox. You can also download our app. Then click here and follow these steps.
When does the Rainbow Children’s Medicare IPO open and close for the subscription?
The Rainbow Children’s Medicare IPO launch date is 27 April 2022. The Rainbow Children’s Medicare IPO will open for subscription till 29 April 2022.
What’s the lot size and minimum investment needed for the Rainbow Children’s Medicare IPO?
The Rainbow Children’s Medicare IPO’s lot size is 27 shares and the minimum investment required is ₹14,634.
What is the price band for the Rainbow Children’s Medicare IPO?
The Rainbow Children’s Medicare IPO’s price band is ₹516-₹542 per share.
What’s the size of the Rainbow Children’s Medicare IPO?
The size of the Rainbow Children’s Medicare IPO is ₹1,581 crore.
How many bids can I place for the Rainbow Children’s Medicare IPO?
You can place up to three bids for an application.
Can these bids be placed at different times during the Rainbow Children’s Medicare IPO subscription period?
No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply.
When will Rainbow Children’s Medicare shares be credited to the demat account?
If the shares are allotted, then they will be credited to your demat account on 9 May, 2022. Click here and follow the steps to check the allotment status.
Which exchanges will Rainbow Children’s Medicare list on?
Shares of Rainbow Children’s Medicare will list on BSE and NSE.
When will Rainbow Children’s Medicare list on the exchanges?
The Rainbow Children’s Medicare’s listing date is 10 May 2022.