homebusiness Newscompanies NewsRainbow Children's Medicare promoter says no plan to currently increase stake beyond 50%

Rainbow Children's Medicare promoter says no plan to currently increase stake beyond 50%

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By Nigel D'Souza   | Mangalam Maloo  Dec 6, 2022 12:05:10 PM IST (Published)

Among the buyers in Monday's large deal in Rainbow Children's Medicare include Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund, Government of Singapore etc.


The promoters of Rainbow Children's Medicare have no plans yet to increase their stake in the company past 50 percent, Chairman and Managing Director Ramesh Kancharla told CNBC-TV18 in an interview.
As of the September quarter shareholding pattern, the promoters hold 49.83 percent stake in Rainbow Children's Medicare.
In a large transaction on Monday, CDC Group or British International Investment Plc, exited the company by selling its entire 14.45 percent holding.

CDC sold 96.3 lakh shares at Rs 735.55 each and another 50.3 lakh shares at Rs 735 apiece in the transactions. The company's pre-IPO lock-in period had expired on November 5 this year, leaving 22.7 percent of the shareholding free to be sold.

Among the buyers in the transaction were some key marquee funds. Some prominent names that featured in the BSE data include:

  • Abu Dhabi Investment Authority:
  • Buys 9 lakh shares
  • Government of Singapore: Buys 21.1 lakh shares
  • ICICI Prudential Mutual Fund: Buys 17.69 lakh shares
  • India Acorn ICAV - Ashoka India Opportunities Fund: Buys 7.22 lakh shares
  • Stitching Depositary APG Emerging Markets Equity Pool: Buys 22.56 lakh shares
  • Kancharla clarified that promoter entities have not bought any stake in these transactions and the list of the remaining buyers will be disclosed soon.

    On the question of inorganic growth, Kancharla said that there may not be any deal closure in the current financial year. He added that the company is looking for a deal that aligns with their business model and adds to their scale. "We are open about it. Of course, when the right opportunity comes, we will look at it," he said.

    For the current financial year, the company is expecting average revenue per bed (ARPOB) to be at Rs 47,000 while occupancy levels are likely to range between 52-54 percent.
    Kancharla also said that he expects the company's Chennai facility to break even in the next 18 months.
    Shares of Rainbow Children's Medicare are trading 1.5 percent higher at Rs 762.
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