Rainbow Children's Hospital acquires Prashanthi Hospital, Warangal

Rainbow Children's Medicare Limited (RCML), India's leading pediatric multispecialty and perinatal care hospital chain, is pleased to announce the signing of a definitive agreement to acquire a majority stake in M/s Prashanthi Medicare Private Limited ("Prashanthi Hospital"), at Warangal - the second-largest district and a prominent business hub of Telangana.

Established in 2015 by Dr. Prasanthi Macha, Prashanthi Hospital is a 100-bed NABH-accredited facility with a strong reputation for delivering high-quality care across obstetrics, gynecology, neonatology, pediatrics, and minimally invasive surgery. Recognized for its clinical excellence, patient-centric approach and strong regional brand equity, the hospital has become a preferred healthcare destination for women and children in Warangal region.

This strategic acquisition underscores RCML's continued expansion in Telangana and further strengthens its presence in southern India. It also reflects the Company's growth plan to expand into tier-II cities where specialized healthcare services remain underserved. The addition of Prashanthi Hospital increases RCML's capacity by 100 beds, taking its total network size to 2,035 beds across 20 hospitals in 7 cities.

The transaction values Prashanthi Hospital at an enterprise valuation of ~INR 32.60 crore (subject to working capital adjustment), representing ~ 9 times the estimated FY25 adjusted EBITDA and is fully funded through RCML's existing cash reserves and internal accruals. RCML will acquire a controlling stake of 76% in fully diluted equity capital & 100% stake of Non-convertible Redeemable Preference Shares (NCRPS), while Dr. Prasanthi Macha along with associates will retain a 24% minority interest.

Following the acquisition, the regional hub facility will be rebranded as 'Rainbow Children's Hospital' for pediatric care and 'Prashanthi with Birthright' for women's care. The hospital will be seamlessly integrated into RCML's hub-andspoke network ensuring clinical alignment and streamlined referral network to the Hyderabad hub for advanced tertiary and quaternary care.

Dr. Ramesh Kancharla, Chairman & Managing Director, Rainbow Children's Medicare Limited, said: "We are delighted to welcome Prashanthi Hospital into the Rainbow's network. This partnership enables us to deepen our roots in Telangana and bring high-end pediatric, neonatal, and maternal care to families in Warangal region through our proven hub-and-spoke model, while strengthening our capabilities in multi-specialty pediatric care."

Dr. Prasanthi Macha, Director, Prashanthi Hospital, added: "We are excited to partner with Rainbow, a national leader in pediatrics and women healthcare. Partnering with Rainbow helps us leverage their strong leadership, clinical expertise, and extensive network to provide even higher standards of pediatric and maternal care to our community."

Shares of Rainbow Childrens Medicare Limited was last trading in BSE at Rs. 1512.95 as compared to the previous close of Rs. 1509.95. The total number of shares traded during the day was 9075 in over 928 trades.

The stock hit an intraday high of Rs. 1529.60 and intraday low of 1498.40. The net turnover during the day was Rs. 13712745.00.

Source : Equity Bulls

Keywords

RainbowChildrensMedicare INE961O01016 Hospital Acquisition PrashanthiMedicare