The IPO comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 24,000,900 equity shares (up to 2.4 crore equity shares) by the selling shareholders.
The company proposes to utilise the net proceeds from the fresh issue towards early redemption of NCDs (non-convertible debentures) issued by the company and spend on capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes.
The offer also includes a reservation for subscriptions by eligible employees.
The Hyderabad-based speciality chain is one of India’s largest multi-speciality pediatric care providers based on hospital beds, as of March 31, 2021.
Rainbow was established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad by NRI doctor-turned entrepreneur Dr Ramesh Kancharla. As of September 30, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.
The Book Running Lead Managers to the offer are Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and IIFL Securities Limited.
