Rainbow Children’s Medicare Limited (RCML) is a well-known, multi-specialty hospital chain across six cities in India. They have 14 hospitals in these six cities and 3 clinics, with a total of 1500 beds. They specialize in pediatrics and obstetrics, and gynecology. A CRISIL report, highlights that they have the highest number of hospital beds in the maternity and pediatric healthcare delivery sector, as of March 31st, 2021.
Starting back in 1999, RCML has garnered a great reputation in the multi-specialty pediatric services. It included obstetrics and gynecology services much later. Five of its hospitals are accredited by NABH and three are certified by EDGE. With only 50 beds back in 1999, in their first hospital in Hyderabad, RCML has grown to 1500 beds across 14 hospitals with 3853 employees, as of December 31st, 2021. Only in 2021 itself, they have added 4 hospitals to their network.
RCML is known for its disciplined and organized approach it adopts for conducting business. It works on a hub-and-spoke model, which has been considered an effective model for business. It has a central hub location hospital, where the focus is on tertiary and quaternary care and in spoke locations, the focus is on secondary care in pediatric, obstetrics, gynecology, and emergency services. The advantage of working in this model is they can use the spoke locations to source patients to their hub location or vice versa, depending on the care the patient requires. During Covid-19 they conducted more than 1.25 Lakh video consultations with their patients.
Rainbow plans to raise approximately Rs.1595 Crore through the IPO. The company intends to utilize the proceeds from IPO for following purposes:
- Finance the early redemption of its Non-Convertible Debentures issued to CDCEML worth approximately Rs. 40 Crore.
- Raise capital for setting up new hospital. (Approximately Rs. 170 Crores will be utilized).
- Other corporate needs