Multi-speciality hospital chain Rainbow Children’s Medicare on Tuesday allocated shares worth Rs 470 crore to anchor investors. Nearly 8.7 million shares were allocated to 36 institutional investors at Rs 542 per share, the upper end of the price range.

The Singapore government, SBI Mutual Fund, Axis Mutual Fund, Neuberger, and HDFC Life are some investors that secured the anchor category. Hyderabad-based Rainbow Medicare aims to raise Rs 2.8 lakh by selling new shares in an IPO. The rest of the offering includes secondary share sales worth Rs 1.3 crore. At the high end of the price range, the company would have a market capitalisation of Rs 5,501 crore.

“Considering earnings per share of Rs 12.56 in the 12 months after issuance (Dec 21), the company will be listed at 43.16 times earnings compared to its peers Apollo Hospital Enterprise and Fortis Healthcare at 77.3 times 56.9 times, respectively time. We give this IPO a “Subscribe” rating because the company is a leading pediatric multi-speciality healthcare chain with strong clinical expertise in managing complex diseases. Also, with peers,” Marwadi, The financial services firm, said in a report.