24 Apr , 2022 By : Kanchan Joshi
Rainbow Children's Medicare IPO (Initial Public Offering) is opening for subscription on 27th April 2022 and it will remain open for bidding till 29th April 2022. The healthcare company plans to raise Rs1595.59 crore from this public offer. However, early signals from grey market may dent the morale of the company and potential investors. As per the market observers, Rainbow Children's Medicare IPO grey market premium (GMP) has been nosediving in the grey market ever since it made its debut there. They said that Rainbow Children's Medicare shares are currently trading at a premium of Rs35 in grey market.
Rainbow Children's Medicare IPO GMP
According to market observers, Rainbow Children's Medicare IPO GMP today is Rs35, which is Rs3 lower from its yesterday's grey market premium. They said that Rainbow Children's Medicare IPO grey market premium has been sliding continuously ever since it made it debut in the grey market. They said that Rainbow Children's Medicare IPO made its debut at Rs52 on Friday but on Saturday it came down at Rs38 and today it is at Rs35. Observers went on to add that such slide in public issue's grey market premium can be attributed to the weak sentiments in the secondary markets. On can expect it to improve once there is trend reversal at Dalal Street.
What this GMP mean?
As told by market observers, Rainbow Children's Medicare IPO GMP today is Rs35, which means grey market is expecting this IPO to list at around Rs577 ( Rs542 Rs35), which is around 60.50 per cent higher from its upper price band.
Speaking on the fundamentals of Rainbow Children's Medicare; Abhay Doshi, Founder at UnlistedArena.com said, "Rainbow Children Medicare Limited is leading multi-specialty hospital chain in India operating in six cities with total bed capacity of 1500 beds following hub-and-spoke model mainly. On the operational front, the company has posted steady top & bottom line numbers, However, 9MFY22 performance seems to be exceptional."
"At the upper price band, Pre-fresh issue, the asking p/e comes around 128x and Market cap to revenue comes around 8x based on FY21 financials. The asking valuations is in-line with listed players. However, It would be keen to watch if the company can maintain 9MFY21 performance going ahead," Doshi added.
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