Rainbow Children’s Medicare IPO
(i) Rainbow is a leading multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds. The company’s core specialties are pediatrics, which includes newborn and pediatric intensive care, pediatric multispecialty services, pediatric quaternary care (including multi organ transplants); and obstetrics and gynecology, which includes normal and complex obstetric care, multi-disciplinary fetal care, perinatal genetic and fertility care.
(ii) They have also expanded its operations to include obstetrics and gynecology services, whereby we offer comprehensive perinatal services to patients. The company follows a doctor engagement model whereby most of its core specialists work exclusively at its hospitals on a full-time retainer basis. This model ensures that most of their core specialists are available 24/7 on a roster basis at their hospitals, which is particularly important for children’s emergency, neonatal and pediatric intensive care services.
(iii) A number of doctors in neonatal, pediatric intensive care, pediatric sub specialties, obstetrics and gynecology are trained or possess qualifications from the United Kingdom, United States, Canada and Australia, which provides them with a competitive advantage. The company enter into retainership contracts with their newly hired doctors covering the initial two to three year periods, which provides them with stability and makes it a desirable workplace.
Key Financial Parameters of Raibow Hospitals
|Occupancy rate (%)||34.23%||56.27%||54.13%|
|Number of full-time doctors||593||596||498|
|Number of nurses||1,169||1,485||1,401|
- Ability to conceptualize, create and operate specialized children’s hospitals.
- Leading pediatric multi-speciality healthcare chain with strong clinical expertise in managing complex diseases.
- Comprehensive perinatal care provider, with synergies between pediatric and obstetrics and gynaecology services.
- The hub-and-spoke model provides synergies and ensures better care and access for patients.
- Strong track record of growth, and operational and financial performance.
- Experienced senior management team with strong institutional shareholder support.
Objects of the Rainbow Children’s Medicare IPO:
Rainbow Children’s Medicare IPO Details:
|Open Date:||Apr 27 2022|
|Close Date:||Apr 29 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Size:||1595.59 Cr.|
|Lot Size:||27 Shares|
|Issue Price:||₹ 516-542 Per Equity Share|
|Listing Date:||May 10 2022|
Promoters And Management:
Financials of Rainbow Children’s Medicare IPO:
|Particulars (in Cr.)||Dec-21||Mar-21||Mar-20||Mar-19|
|Medical Consumables and Pharmacy Items Consumed||161||103||105||80|
|Employee Benefits Expense||84||102||109||86|
|Profit before tax||172||56||93||58.00|
|Total Tax Exps||45||16||38||13|
|No. of shares||10.15||10.15||10.15||10.15|
Comparison With Peers:
|Name of the Company||Sales (In Cr.)||PAT (In Cr.)||EPS||PE||RoCE||Mcap||Returns 3Y||Sales Growth (3Y)|
|Rainbow Children’s Medicare||867||53||17.85||30.36||4.79%||5,501||NA||59.69%|
|Apollo Hospitals Enterprise Ltd||13,984||1,133||78.8||79||8.44%||69,275||288%||45.41%|
|Fortis Healthcare Ltd||5,592||530||7.02||57.8||5.59%||20,765||97%||25.13%|
|Narayana Hrudalaya Ltd||3,597||341||16.7||42||1.62%||14,321||236%||25.73%|
|Max Healthcare Institute Ltd||1,679||272||2.81||145||3.55%||39,299||265%||66.57%|
|Krishna Institute of Medical Sciences Ltd||1,637||310||38.9||35.1||29.60%||10,935||34%||78.32%|