Hyderabad, April 22 : Rainbow Children’s Medicare Limited, the multi-specialty pediatric hospital chain in India, whose initial public offer (IPO) will open for subscription on April 27, has set a price band for the issue at Rs 516-542 per equity share of face value of Rs 10 each. Hyderabad-based Rainbow is currently operating 14 hospitals and three clinics in six cities –Hyderabad, Bangalore, Chennai, New Delhi, Vijayawada and Visakhapatnam with a total bed capacity of 1,500 beds. The three-day IPO will close on April 29, Rainbow Children’s Medicare Founder and Chairman and Managing Director Dr Ramesh Kancharla said at a press conference here on Friday. Bids can be made for a minimum of 27 Equity Shares and in multiples of 27 Equity Shares thereafter, he said. Dr Ramesh said the issue of equity share with face value Rs 10 comprises fresh issue aggregating up to Rs 280 crore and Offer for sale up to 24,000,900 equity shares by Promoter Selling Shareholders, Investor Selling Shareholders and Other Selling Shareholders. He said the offer also includes Employee Reservation Portion of up to 300,000 Equity Shares. Out of Rs 280 crore proceeds from the fresh issue, Rs 170 crore will be utilized for capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals, and Rs 40 crore for the redemption of NCDs while the remaining amount would be utilized for general corporate purposes, the Chairman said. He said that we are planning to add 500 more beds in the next three years and each bed cost would be Rs 60 lakhs on an average. We are planning to expand to the Northeast region, Dr Ramesh said the hub and spoke model will be replicated in Bengaluru, NCR and Chennai. He said that the revenue growth was 20 per cent CAGR (Compound Annual Growth Rate) and there is no operating loss. Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and IIFL Securities Limited are the Book Running Lead Managers. Company Chief Financial Officer R R Gowrisankar and Mahesh Madduri (Head of Strategy, Rainbow Children’s Medicare Limited) were also present at the press conference. KNR CS1707