Rainbow Kid’s Medicare Shares Plunge After Listing At Discount

0
45

Shares of Rainbow Kid’s Medicare Limited made their stock market debut on Tuesday with the scrip listing at 510 apiece on the NSE, a reduction of about 6% as in comparison with its IPO issue price of 542 per share. The stock fell further to 482 inside minutes after listing. On the BSE, Rainbow Kid’s Medicare shares began trading at 506.

“The corporate’s muted listing will be attributed to volatile and negative market sentiments and an absence of investor interest in hospital businesses. The corporate has a specialized nature of business, an experienced management team, proven ability to draw, train and retain high-caliber medical professionals, however the hospital is a highly competitive business and normalization of profitability post covid makes it suitable just for aggressive investors for the long run. Those that applied for listing gains can maintain a stop lack of 500,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.​

The three-day initial public offering (IPO) of Rainbow Kid’s Medicare Limited had opened for subscription on April 27 and conclude on April 29. The difficulty oversubscribed by 12.43 times on the last day of the bidding, driven by qualified institutional buyers (QIB).

The IPO, comprised fresh issue aggregating as much as 280 crore and a suggestion on the market of as much as 2,40,00,900 equity shares, had a price range of 516-542 apiece. Ahead of its initial share sale, the multi-speciality pediatric hospital chain said it garnered nearly 470 crore from anchor investors.

The corporate proposes to utilise the online proceeds from the fresh issue for early redemption of non-convertible debentures in full, capital expenditure towards establishing of recent hospitals and buy of medical equipment, and general corporate purposes.

Rainbow Childrens Medicare, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad. As of December 20, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a complete bed capability of 1,500 beds.

Subscribe to Mint Newsletters

* Enter a sound email

* Thanks for subscribing to our newsletter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here