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Rainbow Children’s Medicare readies for IPO: Report

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Multi-specialty paediatric hospital chain Rainbow Children’s Medicare backed by UK-based development finance institution CDC Group has filed draft red herring prospectus with Securities and Exchange Board of India for an initial public offer.

Rainbow Children’s Medicare readies for IPO: Report
Multi-specialty paediatric hospital chain Rainbow Children’s Medicare, which is backed by UK-based development finance institution CDC Group, has filed the draft red herring prospectus with Securities and Exchange Board of India to raise Rs 2,000 crore through an initial public offering (IPO), media reports said. 
The public issue will be a combination of fresh issue of equity shares of about Rs 280 crore and an offer-for-sale (OFS) of up to 2.4 crore equity shares by existing shareholders, PTI said.
Apart from CDC Group investors, promoters Dinesh Kumar Chirla, Ramesh Kancharla and Adarsh Kancharla will sell stake in the IPO through the OFS, Mint reported. The offer will also have a reservation for subscription for employees.
The size of the offering is likely to be over Rs 2,000 crore, PTI quoted market sources as saying.
JP Morgan India, Kotak Mahindra Capital Company and IIFL Securities are managing the public issue for the hospital chain. The company plans to list on both the Bombay Stock Exchange and the National Stock Exchange.
Funds from the fresh issue will be used for early redemption of non-convertible debentures issued by the company and for general corporate purposes. A part of the net proceeds will also be utilised as capital expenditure for setting up new hospitals and purchasing medical equipment.
Rainbow Children’s Medicare was established in 1999 in Hyderabad with a 50-bed paediatric unit. Since then, the multi-specialty hospital has grown to three clinics and 14 hospitals in six cities in India as on September 30, 2021. The total capacity of the hospital chain stands at 1,500 beds. Rainbow Children’s Medicare specialises in providing paediatric care, including intensive care for newborn and children, paediatric quaternary care, paediatric multi-specialty services and obstetrics and gynaecology.
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