InvestorQ : Can you tell me about the listing of the IPO of Rainbow Hospitals on Tuesday?
sarah Leo made post

Can you tell me about the listing of the IPO of Rainbow Hospitals on Tuesday?

Rashi Mehra answered.
10 months ago

Unlike the IPO of Campus Activewear which listed at a premium and held on to the premium on Monday, the listing of Rainbow children’s Medicare was relatively tepid and the stock actually closed pretty weak on the first day of listing. In fact, on 10th May 2022 the stock listed at a discount of -5.9%, and closed the day well below the listing price. It did make feeble attempts to bounce back but was not successful in a tough market.

It may be recollected that the pricing of the Rainbow IPO was done at the upper end of the price band of Rs.543. The price band had been set in the range of Rs.516 to Rs.542. The upper band decision was taken after the 12.43 times subscription, with QIB subscription at a healthy 38.9 times. Rainbow Children’s Medicare listed on NSE at Rs.510, representing a discount of -5.9% compared to the issue price of Rs.542. If you look at the Bombay Stock Exchange, rainbow listed at Rs.506, a discount of -6.64% to issue price of Rs.542.

Let me first dwell on the price range of the stock on both exchanges on day of listing. On NSE, Rainbow closed at Rs.450, a first day closing discount of -16.97%. On the BSE, stock closed at Rs.450.10, a discount of -16.96% to issue price. Rainbow touched a high of Rs.517.90 and a low of Rs.421.65 on the NSE during the day. On BSE, Rainbow Children’s Medicare touched a high of Rs.519.35 and a low of Rs.421 on listing day.

Let me now turn to trading volumes of Rainbow on day of listing. On NSE, it traded 173.60 lakh shares with traded value of Rs.823.55 crore. On the NSE, Rainbow was the 9th highest traded stock in terms of value, although it did rank anywhere in the top in volumes. Rainbow recorded BSE volumes of 9.19 lakh shares amounting worth Rs.43.30 crore on Day-1 of listing. Rainbow ranked 10th on BSE by turnover and it ranked 5th by number of trades.

At the close of the first day of trading, Rainbow remains a micro-cap stock with market capitalization of Rs.4,569 crore. However, the listing performance was fairly disappointing.