Rainbow Childrens Medicare Ltd

About the company

## **Rainbow Children's Medicare IPO Details** In 1999, Rainbow Children's Medicare set up its first paediatric speciality hospital in Hyderabad. The hospital provided medical services round the clock, which is especially important for child care. It had also put in place a transport facility for patients. This led to the rise in popularity of Rainbow Children’s Medicare. And soon “Rainbow became a destination of choice for young families, and this gave us the confidence to build bigger hospitals and multiple centres in Hyderabad," recalls Dr Ramesh Kancharla, the founder and promoter of Rainbow Children's Medicare. **** Today, it is a leading multi-speciality paediatric, obstetrics and gynaecology hospital chain in India. It operates 14 hospitals and three clinics across six cities, with a total bed capacity of 1,500 beds, as of December 31, 2021. And now, the hospital chain is aiming to raise money by tapping into the equity markets. Rainbow Children's Medicare IPO will be open for subscription between 27 April 2022 and  29 April 2022. ### **All about the Rainbow Medicare IPO** As of March 2021, Rainbow Children’s Hospital has the highest number of hospital beds in the maternity and paediatric healthcare delivery category. It has 641 full-time doctors and 1,947 part-time/visiting doctors. The hospital chain has adopted a doctor engagement model. Basically, most of its core specialists work exclusively at its hospitals on a full-time retainer basis. This model ensures that the core specialists are available 24/7, which is particularly important for children’s emergency, neonatal and paediatric intensive care services. In Hyderabad, Rainbow Children’s Hospital has a hub-and-spoke model. Simply put, it has a main hospital in the city which supports four spokes – Secunderabad, LB Nagar, Kondapur and Hydernagar. This has helped it strengthen its position in and around Hyderabad and is also financially optimal. Hence, the hospital chain has initiated this model in Bengaluru and plans to replicate it in Chennai and New Delhi. ### **Financials** Revenue: 9.4%; Net Profit: -5.7% (FY19-21 CAGR) | **FY19**| **FY20**| **FY21** ---|---|---|--- Revenue|543 crores|719 crores|650 crores Net Profit|45 crores|55 crores|40 crores ### **** ### **Strengths** * The full-time doctor retention rate was at 81% between April 2019 and March 2021. * Strong clinical expertise in managing complex diseases. * A robust track record of growth, operational and financial performance. * A favourable debt-to-equity ratio of 0.07x, as of December 2021. * The average revenue per occupied bed increased to ₹40,893 in FY21 from ₹26,696 in 2019. ### **Risks** * In the first nine months of FY22, around 77% of patient volumes came from hospitals in Hyderabad and Bengaluru. * A drop in occupancy rates due to a slowdown in medical tourism and deferring of elective surgeries. * Operates in a highly regulated and competitive healthcare industry. * Failure to achieve favourable pricing for medical consumables, pharmaceuticals and surgical instruments. * Inadequate health insurance in India. The health insurance penetration stood at 37%, as of March 2020. ### **Good to know** Between FY20 and FY26, the paediatric market is expected to grow at 14% CAGR to ₹1.3 lakh crore. Increasing awareness about childcare and early diagnosis is expected to support the industry growth. Being a major player in this space, Rainbow Children’s Hospital can benefit from these favourable factors.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   27 Apr 2022

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   29 Apr 2022

   Last day to place your bid

3. Basis of Allotment

   Completed
   29 Apr 2022

   Share allotment finalised

4. Refund Initiation

   Completed
   06 May 2022

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   05 May 2022

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   10 May 2022

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.