The Rainbow Children’s Medicare IPO (Initial Public Offering) will open for subscription on April 27, 2022 and will remain open for bids through April 29, 2022. The healthcare company is planning an increase €1595.59 crore from this public offering. However, early signals from the gray market can hurt the morale of the company and potential investors. Rainbow Children’s Medicare IPO gray market (GMP) premium has been nosedive since its gray market debut, market watchers say. They said that Rainbow Children’s Medicare stock currently trades at a premium of €35 on the gray market.
Rainbow Children’s Medicare IPO GMP
Today, according to market observers, Rainbow Children’s Medicare IPO is GMP €35 that is €3 lower from yesterday’s gray market premium. They said Rainbow Children’s Medicare’s IPO gray market premium has steadily declined since its gray market debut. They said the Rainbow Children’s Medicare IPO made its debut €52 on Friday, but it came up on Saturday €38 and today it is at €35. Observers added that such a decrease in the gray market premium of public issues was due to weak sentiment in the secondary markets. On can expect an improvement once Dalal Street reversal.
What does this GMP mean?
As stated by market watchers, Rainbow Children’s Medicare IPO is GMP today €35, meaning the gray market expects this IPO to trade at around €577 ( €542+ €35), which is around 60.50 percent higher than its upper price range.
Talk about the basics of Rainbow Children’s Medicare; Abhay Doshi, Founder of UnlistedArena.com said: “Rainbow Children Medicare Limited is a leading multidisciplinary hospital chain in India operating in six cities with a total bed capacity of 1500 beds mainly on the hub and spoke model. The company has constant Revenue and profit figures released, however 9MFY22’s performance appears to be exceptional.”
“In the upper price range, Pre-Fresh Issue, the requested P/E is around 128x and the market cap to earnings is around 8x, based on FY21 financials. The requested valuations are consistent with the listed players. However, it would be very interesting to see if the company can maintain the performance of 9MFY21 going forward,” added Doshi.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint.
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