Rainbow Children's expands in Telangana with hospital acquisition

Rainbow Children's Medicare Limited (RCML) announced it will acquire a 76% stake in the equity share capital of Prashanthi Medicare Private Limited ("Prashanthi Hospital") and 100% of the non-convertible redeemable preference shares. Prashanthi Hospital is a 100-bed NABH-accredited facility in Warangal, Telangana. The cost of acquisition is estimated at INR24.85 Cr for the equity and INR7.75 Cr for NCRPS. Rainbow's acquisition increases its network to 20 hospitals and 2,035 beds across 7 cities. The company plans to rebrand the hospital as Rainbow Children's Hospital and Prashanthi with Birthright. The transaction is expected to close within 30 days and will be funded using existing cash reserves and internal accrual.