Ahead of Rainbow Children’s Hospital Ltd (RCHL)'s initial opening offering (IPO) today (April 27), it has raised around Rs 470 crore from anchor investors.
In a filing to the BSE, Rainbow Children's Medicare said it had finalised the allocation of 86.63 lakh shares to anchor investors at a price of Rs 542 per equity share after consulting its book-running lead managers.
The multi-specialty paediatric and gynaecology hospital chain's IPO anchor investors include Goldman Sachs, Govt of Singapore, Monetary Authority of Singapore, Neuberger, Mathews Emerging, Ghisallo Master Fund, HSBC MF, SBI Healthcare Opps Fund, Axis MF, Nippon Life Fund, Ashoka India, Amansa Holdings, India Acorn, IIFL Special Opps, HDFC Life, Aditya Birla Sun Life, DSP MF, Baroda BNP Paribas, Motilal Oswal, UTI Healthcare, Bajaj Allianz Life, Max Life Insurance, etc
Domestic investors also participated in the offer, including Axis Mutual Fund, Nippon Life, IIFL Special Opportunities Fund, HDFC Life Insurance Company, Aditya Birla Sun Life Trustee, DSP Mutual Fund, Baroda BNP Paribas Multi Cap Fund, Motilal Oswal MF, UTI MF, and Max Life Insurance.
RCHL is operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021.
Company valuation
The company is bringing the issue at price band of Rs 516-542 per share at p/e multiple of 32x on pre issue FY21 eps basis. RHCL, being leading pediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases, follows Hub-and-spoke model that provides synergies.
Objectives of the IPO
The company will utilise the net proceeds from the fresh issue on capital expenditure to set up new hospitals and purchase medical equipment for such new hospitals; for early redemption of non-convertible debentures (NCDs) issued by the company in full; and for general corporate purposes, it said.
Books running lead managers to the issue are Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities. The company’s equity shares are proposed to be listed on BSE and NSE.
The IPO also includes an offer-for-sale by promoters such as 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.
Expert intake
Hem Securities says: RHCL has strong track record of growth, operational and financial performance and experienced senior management team with strong institutional shareholder but looking after current occupancy rate & future business plans of company , we recommend “Subscribe” on issue".
