Multi-speciality pediatric hospital Rainbow Children’s Medicare said it has fixed a price band of Rs 516-542 a share for its Rs 1,581 crore Initial Public Offering. From 27-29th of this month, the initial share sale will be opened for public subscription. The offer for anchor investors will open on April 26.
The public issue consists of a fresh issue of equity shares heaping up to Rs 280 crore and an offer for the sale of up to 2.4 crore equity shares by promoters and investors. Those selling shares in the offer for sale are promoters like Adarsh Kancharla, Dinesh Kumar Chirla, and Ramesh Kancharla, promoter group company Padma Kancharla and investors like British International Investment plc and CDC in India.
The firm proposes to make use of the net proceeds from the fresh issue for the early redemption of non-convertible debentures furnished by the company completely, capital expenditure towards setting up of new hospitals, and purchase of medical equipment for such new hospitals and general corporate purposes. The public issue is speculated ti cross Rs 1,581 at the upper hand of the price band.
It also has a reservation of up to three lakh shares for employees who will acquire shares at an offer of Rs 20 to the final offer price. The equity shares are presented to be listed on BSE and NSE. Rainbow runs 14 hospitals and 3 clinics in 6 Indian cities, with a total bed capacity of 1,500.