Rainbow Children’s Medicare IPO makes tepid debut; shares list at nearly 7% discount

A day after strong listing of Campus Activewear IPO, Rainbow Children’s Medicare IPO made a weak debut on bourses on Monday. Shares of Rainbow Children’s Medicare were listed at a discount of around 7% on the BSE. Against upper end of the price band of the issue price at Rs 542, the shares were listed at 506, a discount of Rs 36 or 6.64% on each share.  

Earlier, Rainbow Children’s Medicare IPO was subscribed 12.43 times on the last day of the bidding on Friday, showed NSE IPO data. The Qualified Institutional Buyers (QIB) portion was subscribed maximum at 38.9 times, followed by non-institutional investors bidding of 3.73 times. The retail investors oversubscribed the issue by 1.38 times. The three-day Rs 1,580.85 crore IPO of leading multi-specialty pediatric and obstetrics and gynecology hospital chain, which opened on April 27, closed on April 29. 

Rainbow Children's Medicare Limited operates a multi-specialty pediatric, obstetrics and gynecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-specialty services, pediatric quaternary care, obstetrics and gynecology, which includes normal and complex obstetric care, and multidisciplinary 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, namely Secunderabad, LB Nagar, Kondapur and Hydernagar. 

The company also offers childbirth preparation classes, breastfeeding support services, urogynecology treatment, breast care services, menopausal treatment, nutritional counselling and diabetology services. 

Earlier, Zee Business Managing Editor Anil Singhvi has said that high-risk taking log-term investors can apply in this IPO. He has suggested keeping a stoploss at Rs 540, Rs 2 below the issue price. Singhvi said the listing would be near the issue price with around 5% margin on either side.