The issue consists of issuance of fresh equity shares aggregating to Rs 280 crore and an offer for sale (OFS) of up to 24 million equity shares by promoters and existing shareholders of the company.
Shareholders participating in OFS include promoters – Ramesh Kancharla, Dinesh Kumar Chirla and Adarsh Kancharla, promoter group entity Padma Kancharla and investors British International Investment and CDC India.
The net proceeds from the fresh issue will be utilized towards the early redemption of non-convertible debentures (NCDs) issued by the company, along with capital expenditure towards setting up new hospitals and purchase of equipment.
Backed by UK-based CDC Group, RCML operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company kicked off its operations in 1999.
As of December 20, 2021, Hyderabad based Rainbow operated 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.
Its core specialities are paediatrics, which includes newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care (including multi-organ transplants); and obstetrics and gynaecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.
50 per cent of the net offer will be reserved for qualified institutional investors, whereas 15 per cent for non-institutional bidders while the rest 35 for retail investors.
Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the books running lead managers to the issue. KFin Technologies has been appointed as registrar to the issue.
