Rainbow Children’s Medicare IPO Subscription Status Day 1: Check how retail, NII, QIB and employees' category fared so far

Rainbow Children’s Medicare IPO Subscription Status: Rainbow Children’s Medicare IPO, which will remain open for subscription between April 27 and 29, saw 0.23 times subscription around 2.30 pm on Wednesday, as per NSE bid details of the IPO. Though IPO started off on slow note, retail investors were seen leading the bidding process on Day 1 as Retail Individual Investors (RIIs) subscribed the issue 0.4 times. Qualified Institutional Buyers (QIBs) portion was subscribed 10%, employees' category was filled 5% and Non-Institutional Investors quota was filled 4% of their respective allotted quotas around the same time.  

The three-day Rs 1,580.85 crore IPO will comprises fresh issue of Rs 280 crore and an offer for sale of Rs 1300.85 crore. The company, which runs a multi-speciality pediatric, obstetrics and gynaecology hospital chain, has kept a price band of Rs 516 – 542 for this offer. An investor can apply for a minimum one lot, which has 27 shares.  

Rainbow Children's Medicare Limited operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company offers a wide range of services such as newborn and pediatric intensive care, pediatric multi-speciality services, pediatric quaternary care, obstetrics and gynaecology, which includes normal and complex obstetric care, and multidisciplinary fetal care, perinatal genetic and fertility care. 

Earlier, Zee Business Managing Editor has suggested that only high-risk taking investors should only apply for this issue. He was of the view that the company has highly competitive business and dependence on Southern India Market is huge. "Hence, only high-risk taking investors should apply for Rainbow Children’s Medicare IPO," he had said.  

Speaking of positive, he said the company offers good financial track record, has strong cashflow with low debt and comes with reasonable valuations.