Shares of Rainbow Children’s Medicare, multi-specialty hospital chain, slumped 17 per cent on their stock market debut on Tuesday. The stock completed at Rs 450, Rs 92 under its challenge worth of Rs 542 per share.
This is the worst-listing day efficiency for IPOs listed this calendar year. The poor listing efficiency comes regardless of encouraging response to the Hyderabad-based agency’s Rs 1,300-crore IPO. The providing was oversubscribed 12 occasions. Market gamers blamed poor secondary market situations for the weak debut.
Rainbow Medicare’s IPO closed on April 29. Since then, the benchmark Nifty has slumped over 6 per cent. Shares value almost Rs 900 crore had been traded on Tuesday. At the final shut, the company had a market cap of 4,569 crore. Rainbow Medicare trades at a price-to-earnings (P/E) ratio of round 36 occasions based mostly on trailing 12-month (Dec 21) earnings for share (EPS) of Rs 12.6. Peers similar to Apollo Hospital and Fortis Healthcare are buying and selling at P/E of 75 occasions and 55 occasions, mentioned an analyst.
Rainbow Medicare is a number one pediatric multi-specialty healthcare chain with sturdy scientific experience in managing complicated ailments.