Shares of Rainbow Children's Medicare on Tuesday debuted with a discount of nearly 7 percent against the issue price of Rs 542.
The stock opened at Rs 506, registering a decline of 6.64 percent from the issue price on the BSE. It further tanked 11 percent to Rs 482.
At the NSE, the stock listed at Rs 510, a discount of 5.90 percent.
The Rs 1,581-crore initial public offer of Rainbow Children's Medicare was subscribed 12.43 times last month.
The offer of the multi-speciality pediatric hospital chain had a price band of Rs 516-542 apiece.
Rainbow Children's Medicare, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad.
Santosh Meena, Head of Research, Swastika Investmart Ltd. on Rainbow Children's Medicare Limited IPO said, Rainbow Children's Medicare Limited has debuted at Rs.510 i.e. 6 percent below its issue price. The company’s muted listing can be attributed to volatile and negative market sentiments and a lack of investor interest in hospital businesses.
The company has a specialized nature of business, an experienced management team, proven ability to attract, train and retain high-caliber medical professionals, but the hospital is a highly competitive business and normalization of profitability post-COVID makes it suitable only for aggressive investors for the long term. Those who applied for listing gains can maintain a stop loss of Rs. 500.
(With PTI inputs)
