Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!
you are here: HomeNewsBusinessIPO

Rainbow Childrens Medicare tanks 17%, closes at Rs 450 in debut trade

Rainbow Children's Medicare traded with a volume of 1.73 crore equity shares on the National Stock Exchange, and 9.19 lakh shares on the BSE

May 10, 2022 / 05:17 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Rainbow Children's Medicare  disappointed investors on the first trading day, ended 17 percent lower than the issue price on May 10, as the market again closed in the red.

The Indian market has been under pressure for more than a month now, and lost over 5 percent since last week due to weak global cues and growth concerns.

Rainbow Children's opened at Rs 506, down 6.6 percent from the issue price of Rs 542 on the BSE and remained under pressure throughout the session. It sank to Rs 421 before closing with a 17 percent loss at Rs 450.10.

"The company's muted listing can be attributed to volatile and negative market sentiments and a lack of investor interest in hospital businesses," Santosh Meena, Head of Research at Swastika Investmart, said.

Also read: As Rainbow Children's Medicare skids on debut, what should investors do now?

Close

The multi-specialty paediatric, obstetrics and gynaecology hospital chain operator has a specialised business, an experienced management team, proven ability to attract, train and retain high-calibre medical professionals. But, " hospital is a highly competitive business and normalisation of profitability post Covid makes it suitable only for aggressive investors for the long term," Meena said.

Rainbow Children's Medicare traded with volume of 1.73 crore equity shares on the National Stock Exchange and 9.19 lakh shares on the BSE.

The south-based firm, which operates 14 hospitals with a capacity of 1,500 beds as of December 2021, raised Rs 1,581 crore through its public issue that comprised a fresh issue of Rs 280 crore and an offer for sale of Rs 1,301 crore.

The price band for the public issue was Rs 516-542 a share.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Sunil Shankar Matkar
first published: May 10, 2022 05:17 pm
Sections
ISO 27001 - BSI Assurance Mark