Rainbow Childrens Medicare Limited has informed the Exchange about Acquisition
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Rainbow Childrens Medicare Limited has approved the acquisition of a 76% stake in the fully diluted equity share capital and 100% of the NCRPS of Prashanthi Medicare Private Limited, which operates a 100-bed NABH-accredited hospital in Warangal, Telangana. The total investment is approximately Rs. 32.60 crore (Rs. 24.85 crore for equity and Rs. 7.75 crore for NCRPS), valuing Prashanthi Hospital at about 9x its estimated FY25 adjusted EBITDA. The deal is fully funded through the company's existing cash reserves and internal accruals, is not a related-party transaction, and is expected to be completed within 30 days with no regulatory approvals required. Post-acquisition, Rainbow's network expands to 20 hospitals and 5 clinics across 7 cities with 2,035 total beds. Founder Dr. Prasanthi Macha retains a 24% minority stake, and the hospital will be rebranded under the Rainbow and Birthright banners.
This is a strategic, bolt-on acquisition in Rainbow's home market of Telangana that adds 100 beds and strengthens its hub-and-spoke model by linking Warangal to its Hyderabad hub. The deal is funded internally at a reasonable valuation (~9x EBITDA) and should be modestly earnings-accretive, with limited downside given the small size relative to Rainbow's overall network.