Rainbow Children's Medicare Limited Acquires Stake in Nellore Hospital to Strengthen Andhra Pradesh Network
Rainbow Children's Medicare Limited has acquired a significant stake in Super Prime Medical Care LLP, with the move aimed at strengthening its presence and operational footprint across Andhra Pradesh. The acquisition involves purchasing 64% of the partnership interest and corresponding capital contribution in the LLP.The Company agreed to an aggregate consideration of ₹ 19.84 Cr for the proposed transaction, which includes a Partnership Interest and Contribution Transfer Agreement (PICTA) executed with existing partners of Super Prime Medical Care LLP. Upon the successful completion of the acquisition, the LLP will become a subsidiary of Rainbow Children's Medicare Limited.
The targeted entity is a limited liability partnership operating as a children's hospital in Nellore, Andhra Pradesh, promoted by leading doctors. This strategic move intends to enable the Company to operate this specialized facility and strengthen its overall business operations within the state.
Key Details of the Acquisition
A detailed look at Super Prime Medical Care LLP shows it is engaged in operating a 70-bed hospital and allied healthcare services. The LLP was incorporated on February 8, 2023, under the Limited Liability Partnership Act, 2008, and operates within India.The financial performance of the acquired entity across three financial years is summarized below:
| Financial Year | Turnover (₹) |
|---|---|
| FY 2025-26 (Unaudited Provisional) | 9.44 Crore |
| FY 2024-25 | 3.75 Crore |
| FY 2023-24 | Nil |
The acquisition is not considered a related party transaction, and none of the promoter or promoter group companies have any interest in Super Prime Medical Care LLP. The Company expects this addition to augment the hospital's capacity by approximately 30 beds.
Strategic Expansion and Capacity Addition
The proposed expansion aims to reinforce the Hub and Spoke Model across Andhra Pradesh and enhance long-term shareholder value by improving patient accessibility and strengthening referral pathways. This initiative falls under a broader plan for capacity additions within the state.Current operational figures provide context for the planned expansion:
| Parameter | Details |
|---|---|
| Existing Capacity (As on date) | 2,435 beds |
| Existing Utilization (As on date) | 46.3% |
| Proposed Addition in Nellore | Incremental capacity of 70 beds |
The investment required for this expansion is estimated at approximately ₹ 19.84 Cr and will be financed through Internal Accruals. The successful completion of the acquisition and related activities is anticipated by August 31, 2026.
Following the addition of the Nellore facility, Rainbow Children's Medicare Limited projects that it will operate a network of four hospitals across Visakhapatnam, Vijayawada, Rajahmundry, and Nellore in Andhra Pradesh.
RAINBOW Stock Price Movement
On Wednesday, shares of Rainbow Childrens Medicare Limited edged higher to close at ₹1496.7, gaining 1.51% on their stock. The equity saw robust activity, trading a volume of 58,187 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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