Rainbow Medicare subscribed 29% on Day-1 on retail interest

The initial public offering (IPO) of Rainbow Medicare was subscribed 29 per cent on Wednesday, the first day of the offer.

The institutional portion was subscribed by 1 per cent, the wealthy investor portion by 11 per cent, the retail investor portion by 48 per cent, and the portion reserved for employees by 7 per cent.

The multi-speciality hospital chain had allotted shares worth Rs 470 crore to anchor investors on Tuesday. Close to 8.7 million shares were allotted to 36 institutional investors at Rs 542 per share, the upper end of the price band.

The government of Singapore, SBI Mutual Fund, Axis Mutual Fund, Neuberger and HDFC Life are some of the investors to get allotment in the anchor category.

Hyderabad-based Rainbow Medicare aims to raise Rs 280 crore by selling new shares in the IPO. The rest of the issue comprises secondary share sale worth Rs 1,300 crore. At the top end of the price band, the company will have a market cap of Rs 5,501 crore.