Rainbow Children’s Medicare Limited IPO Company Profile :

RCML operating 14 hospitals and 3 clinics in 6 cities, with a total bed capacity of 1,500 beds, as of December 30, 2021 is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain company in India. Pediatrics medicine involves  dealing with the development, care, and diseases of infants, children, and adolescents. Pediatric services of the company includes newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care (including multi-organ transplants); whereas, Obstetrics & Gynecology services include normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care. The company follows a hub-and-spoke model in Hyderabad, with their Banjara Hills hospital (comprising 250 beds) being the hub and 4 spokes at 4 locations in Hyderabad.

IPO-Note Rainbow Children’s Medicare Limited
Rs 516 – Rs 542 per Equity share Recommendation: Subscribe


    Open FREE* Demat & Trading Account & ₹0 AMC for first year

    Rainbow Children’s Medicare Limited IPO Details-

    Issue Details
    Objects of the issue ·Early redemption of NCDs issued by Company, in full.

    · Capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals.

    · General corporate purpose

    Issue Size Total issue Size -Rs. 1580.85 Cr.

    Fresh Issue– Rs. 280 Cr.

    Offer for Sale – 1300.85 Crore

    Face value Rs.10.00 Per Equity Share
    Issue Price Rs. 516– Rs. 542
    Bid Lot 27 shares
    Listing at  BSE, NSE
    Issue Opens: 27th  Apr, 2022 – 29th  Apr, 2022
    QIB 50% of Net Issue Offer
    Retail 35% of Net Issue Offer
    NII 15% of Net Issue Offer


          Rainbow Children’s Medicare Limited IPO

    Wants To Apply Online

    Trade AnyTime AnyWhere With Elite Empower Mobile App


    Rainbow Children’s Medicare Limited IPO Strengths:

    • Leading pediatric multi-specialty healthcare chain with strong clinical expertise in managing complex diseases
    • Strong track record of growth, operational and financial performance
    • Rainbow Hospitals has the highest OPBDIT margin as of FY21 and FY20 among the peers considered
    • Hub-and-spoke model that provides synergies and ensures better care and access for patients

    Check Rainbow Children’s Medicare Limited IPO Allotment Status

    Go  Rainbow Children’s Medicare Limited IPO  allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

    One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

    1. To  Rainbow Children’s Medicare Limited IPO  Allotment Status
    2. Go to Application Status
    3. Select IPO as  Rainbow Children’s Medicare Limited IPO 
    4. Enter your PAN Number or Application Id or DP Client Id.


                                      Rainbow Children’s Medicare Limited IPO

    Application Form

    Rainbow Children’s Medicare Limited IPO Financial Performance:


    Rainbow Children’s Medicare Limited Shareholding Pattern:

    Company CMP OPM % PE (Annu.) ARPOB
    Apollo Hosp 4623.3 18.6 51.64 40200
    Fortis Health. 275.6 27.7 45.48 43300
    Max Health. 409.45 27.6 57.72 50100
    RCML 542 35.0 32.60 40900

    Rainbow Children’s Medicare Limited IPO Shareholding Pattern:

    Shareholding Pattern Pre- Issue Post Issue
    Promoters & Promoter Group 62.19% 49.83%
    Public 37.81% 50.17%
    Source: RHP, EWL Research

    Rainbow Children’s Medicare Limited IPO Key Highlights:

    • Revenue from Operations grew at a CAGR of 9.4% from FY19-21. FY21 revenue was impacted due to COVID.

    • EBITDA Margin improved from 28.9% in FY20 to 35.4% in FY22.

    • ARPOB (Average revenue per occupied bed) per day increased from Rs.45,951 in 9MFY22 from Rs. 40,893 in FY21

    • Debt to Equity ratio stands at 0.07 at the end of December, 2021

    • Occupancy Rate stood at 46.18% at end of December, 2022

    • It has significant presence in the Southern region with approximately 90% of the beds in Southern region.

    Rainbow Children’s Medicare Limited IPO Risk Factors:

    • Revenues are highly dependent on hospitals in Hyderabad and Bengaluru

    • The company operates in a regulated industry, and compliance with applicable safety, health, environmental, labour, and other regulations which may adversely affect the business of the company.

    Rainbow Children’s Medicare Limited IPO Outlook:

    Rainbow’s specialty mix focuses more on paediatric care across niche areas such as Neurology, Nephrology, Gastroenterology, Oncology and Cardiology etc. Paediatric market in India which has grown at 14% CAGR between the financial years 2016 and 2020 is expected to grow at the same growth going forward supported by growth in both private and public sector healthcare units. Increasing awareness on childcare and early diagnosis is expected to contribute to growth for the industry as the new-age couples want to experience the birthing journey with the best available treatment, hospital facilities, doctor/consultants. RCML plans to increase the capacity of their hubs in New Delhi-NCR and Bengaluru.  At the higher price band of Rs 542, the offer is made at P/E multiple of 32.6x of FY22 Post issue annualized EPS which is line with the industry. Ratios of the company improved significantly during 9MFY22 and the key for the company would be to sustain current growth. Considering the leadership and growth of the company, we recommend subscribe to the IPO.

    Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

    Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
    For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
    Disclosure Appendix
    Analyst Certification (For Reports)
    Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
    The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
    As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
    (1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
    (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
    For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
    Research Excerpts
    This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
    Company-Specific Disclosures
    Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
    Options related research:
    If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
    Other Disclosures
    All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
    Ownership and material conflicts of interest Disclosure
    Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
    Country Specific Disclosures
    India – For private circulation only, not for sale.
    Legal Entities Disclosures
    Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
    EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
    1. Reports
    a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
    (b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
    (c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
    2. Compensation
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
    (c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
    3 In respect of Public Appearances
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL