New Delhi: The initial public listing (IPO) of multi-speciality pediatric hospital chain Rainbow Children's Medicare will open for public subscription on April 27.
The three-day IPO, which has a public issue of Rs 1,595 crore, will remain open till April 29.
According to the red herring prospectus (RHP) with Securities and Exchange Board of India (Sebi) showed on Thursday, the bidding for anchor investors was opened on April 26.
The multi-specialty hospital management has fixed price band of its offer at Rs 516 to Rs 542 per share.
However, according to market analysts the IPO size is expected to be more than Rs 2,000 crore.
The public issue comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders.
The equity shares are proposed to be listed on the BSE and NSE.
The promoters of Rainbow Children's Medicare are Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors British International Investment plc (formerly known as CDC Group plc) and CDC India.
For the subscription of eligible employees, the offer also includes a reservation of up to 3 lakh shares.
The tentative date for share allocation announcement is May 5 2022, while the likely date for share listing is May 10, 2022.
According to news reports, the company proposes to utilise the net proceeds from the issue towards early redemption of non-convertible debentures (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.
Rainbow set up its first 50-bed paediatric speciality hospital in 1999 in Hyderabad. As of December 2021, the company runs 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.