Rainbow hospital chain IPO to open on April 27  

Price band set at ₹516-542 per equity share 

Multi-speciality paediatric and obstetrics and gynaecology hospital chain Rainbow Children’s Medicare has set the price band of its IPO at ₹516-542 per equity share (face value of ₹10 each).

The IPO, to raise up to ₹1,581 crore, opens on April 27 and will close on April 29. Bids can be made for a minimum of 27 equity shares and in multiples of 27 equity shares thereafter.

The issue comprises fresh issue aggregating up to ₹280 crore and offer for sale up to a little over 2.40 crore equity shares by promoter selling shareholders, investor selling shareholders and other selling shareholder.

Rainbow Children’s Medicare operates 14 hospitals and three clinics in Hyderabad, Bengaluru, Chennai, New Delhi, Vijayawada and Vishakhapatnam with a total bed capacity of 1,500 beds. The company proposes to utilise the net proceeds from fresh issue towards early redemption of NCDs it had issued to CDC Emerging Markets Ltd., one of its group companies, in full amounting to ₹40 crore; capital expenditure towards setting up of new hospitals and purchase of medical equipment amounting to ₹170 crore; and general corporate purposes.