Rainbow Children's Medicare Limited initiates joint venture for new hospital in Malad, Mumbai

Rainbow Children's Medicare Limited initiates joint venture for new hospital in Malad, Mumbai​

Rainbow Children's Medicare Limited has announced a significant strategic move to expand its healthcare network through a major capacity addition. The company is involved in the development of a new children's and women's hospital at Malad, Mumbai, through its wholly owned subsidiary, Rainbow Women & Children's Hospital Private Limited (RWCHPL).

The project involves an estimated cost of approximately ₹ 90 Crore. This initiative aims to augment the Company's healthcare delivery network in Western India.

Partnership Structure and Shareholding Update​

Fountainhead TCHM Healthcare LLP has been inducted into RWCHPL as part of this development. The LLP, which is promoted by a group of reputed doctors including Dr. Susan Veena Fernandes, Dr. Vinay Hanamesh Joshi, and Dr. Allan Mark Pereira, is set to acquire a 24% equity stake in RWCHPL.

Following the completion of the transactions outlined, RWCHPL will transition from being a wholly owned subsidiary of Rainbow Children's Medicare Limited (RCML) to remaining a subsidiary, with RCML holding 76% of the equity share capital and retaining control over the company.

Capacity Expansion Details​

The proposed capacity addition is set to enhance specialized pediatric, women, and neonatal care in Maharashtra. The new hospital in Malad, Mumbai, is expected to be commissioned by Q1 FY27-28, subject to necessary approvals and project completion.

Details concerning the current operations and the proposed expansion are summarized below:


The funding structure for the project involves Internal Accruals, with a contribution of approximately ₹68,40,00,000 provided by RCML. This expansion, along with previously announced plans in Pune, is intended to establish a robust regional hub-and-spoke network across Maharashtra and strengthen referral pathways in Western India.

Investment Overview into RWCHPL​

The investment pertains to the acquisition of shares in Rainbow Women & Children's Hospital Private Limited (RWCHPL). The target entity specializes in healthcare services, including running hospitals, dispensaries, maternity homes, health centers, clinics, and diagnostic centers.

Key financial details related to the acquisition include:


The transaction is structured as an arm's length acquisition through subscription to the securities of RWCHPL.

RAINBOW Stock Price Movement​

Rainbow Childrens Medicare Limited shares edged higher on Wednesday, closing at ₹1496.7 after the stock gained 1.51%. The equity settled following a trading session that saw 58,187 shares transact.