Rainbow Kids’s Medicare’s IPO subscribed 12.4x on institutional push

The preliminary public providing (IPO) of Rainbow Kids’s Medicare, a multi-speciality pediatric hospital chain, noticed 12 occasions extra demand than shares on provide.

The institutional investor portion of the difficulty was subscribed 38.9 occasions, excessive networth particular person portion garnered 3.73 occasions subscription and the retail portion was subscribed 1.4 occasions.

The institutional demand for each the IPOs of Rainbow Medicare and Campus Activewear, which closed this week, have been sturdy. Specialists say it is a wholesome signal for LIC’s IPO, which opens subsequent week.

Hyderabad-based Rainbow Medicare raised Rs 280 crore from the IPO. The difficulty additionally consisted of secondary share sale value Rs 1,300 crore. At Rs 542 per share—the top-end of the value band, the corporate may have a market cap of Rs 5,501 crore on a post-diluted foundation.

The difficulty was priced at 43 occasions the corporate’s trailing 12-month (Dec 21) earnings. Analysts stated this was engaging in comparison with friends akin to Apollo Hospital Enterprise and Fortis Healthcare, that are buying and selling at price-to-earnings multiples of 77 occasions and 57 occasions, respectively.

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