Rainbow Medicare slumps 17% on debut in worst IPO listing in CY22 so far

Stock end at Rs 450, Rs 92 below issue price of Rs 542 a share

Shares of Rainbow Children’s Medicare, multi-specialty hospital chain, slumped 17 per cent on their stock market debut on Tuesday. The stock finished at Rs 450, Rs 92 below its issue price of Rs 542 per share.

This is the worst-listing day performance for IPOs listed this calendar year. The poor listing performance comes despite encouraging response to the Hyderabad-based firm’s Rs 1,300-crore IPO. The offering was oversubscribed 12 times. Market players blamed poor secondary market conditions for the weak debut.

Rainbow Medicare’s IPO closed on April 29. Since then, the benchmark Nifty has slumped over 6 per