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Rainbow Childrens IPO subscribed 55% on second day of offer

At the upper end of the price band, the IPO is expected to fetch Rs 1,581 crore

Agencies | Updated on: Thursday, April 28, 2022, 08:56 PM IST

The multi-speciality pediatric hospital chain said it garnered nearly Rs 470 crore from anchor investors.
/Representative image | Photo credit: Pixabay
The multi-speciality pediatric hospital chain said it garnered nearly Rs 470 crore from anchor investors. /Representative image | Photo credit: Pixabay
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The initial public offering of Rainbow Childrens Medicare Limited was subscribed 55 per cent on the second day of offer on Thursday.

The IPO received bids for 1,12,62,753 shares against 2,05,14,617 shares on offer, according to NSE data.

The portion for Retail Individual Investors (RIIs) got subscribed 82 per cent, while non institutional investors received 56 per cent subscription and the quota for Qualified Institutional Buyers (QIBs) was subscribed 10 per cent.

The offer, comprising fresh issue aggregating up to Rs 280 crore and an offer for sale of up to 2,40,00,900 equity shares, has a price range of Rs 516-542 apiece.

On Tuesday, the multi-speciality pediatric hospital chain said it garnered nearly Rs 470 crore from anchor investors.

At the upper end of the price band, the IPO is expected to fetch Rs 1,581 crore.

The company proposes to utilise the net proceeds from the fresh issue for early redemption of non-convertible debentures in full, capital expenditure towards setting up of new hospitals and purchase of medical equipment, and general corporate purposes.

Rainbow Childrens Medicare, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad.

Kotak Mahindra Capital Company, J P Morgan India and IIFL Securities are the managers to the offer.

(With inputs from PTI)

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Published on: Thursday, April 28, 2022, 08:56 PM IST