Rainbow Childrens Medicare , a prominent player in pediatric healthcare, has initiated a significant financial move by seeking shareholder approval for a Rs 35 crore loan facility. This development comes as the company aims to support its subsidiaries and a potential acquisition target.

Key Points of the Proposal

• Loan Amount: The company is seeking approval to provide loans up to Rs 35 crore in aggregate.
• Beneficiaries: The loans are intended for three companies:
  1. Rainbow Speciality Hospitals Private Limited
  2. Prashanthi Medicare Private Limited
  3. Pratiksha Women & Child Care Hospital Private Limited

Purpose and Implications

The proposed loans are aimed at supporting the principal business activities of the borrowing companies. This move is significant as it involves companies where certain directors of Rainbow Children's Medicare have interests.

Voting Process

• E-voting Period: August 29 to September 27, 2025
• Results Announcement: On or before September 30, 2025

Corporate Actions

Rainbow Children's Medicare's Board of Directors has approved several key actions:

1. Existing Subsidiaries: Rainbow Speciality Hospitals Private Limited and Prashanthi Medicare Private Limited are confirmed as existing subsidiaries of the company.

2. Potential Acquisition: The board has approved the execution of agreements to acquire:

   • 76% of the fully diluted equity share capital
   • 100% of the Non-Convertible Redeemable Preference Shares (NCRPS) of Pratiksha Women & Child Care Private Limited

This acquisition, once completed, will make Pratiksha Women & Child Care Private Limited a subsidiary of Rainbow Children's Medicare.

Regulatory Compliance

The company is seeking this approval in compliance with Section 185 of the Companies Act, 2013. This section allows companies to provide loans to entities in which their directors are interested, subject to shareholder approval through a special resolution.

Management's Perspective

The management views this financial assistance as crucial for meeting the growing business requirements of these companies. The funds are expected to support expansion, working capital needs, and other requirements related to their principal business activities.

Rainbow Children's Medicare's move to provide financial support to its subsidiaries and potential acquisition target reflects its strategy to strengthen its position in the healthcare sector. Shareholders will play a crucial role in deciding the outcome of this proposal through the upcoming e-voting process.

The company's focus on expanding its network through strategic investments and support to its subsidiaries indicates a robust growth strategy in the competitive healthcare market.

Rainbow Childrens Medicare Limited (RCML) has successfully completed the acquisition of a majority stake in Pratiksha Women & Child Care Hospital Private Limited, marking a significant expansion in its healthcare portfolio.

Acquisition Details

RCML finalized the acquisition of:

• 76% of the fully diluted equity share capital
• 100% of the Non-Convertible Redeemable Preference shares (NCRPS)

This strategic move follows the execution of a Securities Subscription Agreement and Shareholders' Agreement.

Impact on Corporate Structure

As a result of this acquisition, Pratiksha Women & Child Care Hospital Private Limited has now become a subsidiary of Rainbow Children's Medicare Limited. This change in status is in accordance with the provisions of the Companies Act, 2013 and SEBI Listing Regulations, 2015.

Market Implications

The acquisition is expected to strengthen RCML's position in the healthcare sector, particularly in women's and children's care. By integrating Pratiksha Women & Child Care Hospital into its network, RCML is poised to expand its service offerings and geographical presence.

Regulatory Compliance

RCML has duly informed the National Stock Exchange of India Limited and BSE Limited about the completion of this acquisition, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company's proactive disclosure demonstrates its commitment to transparency and adherence to regulatory standards in corporate transactions.

This strategic acquisition by Rainbow Children's Medicare Limited represents a significant development in the Indian healthcare landscape, potentially enhancing the company's capabilities in specialized medical care for women and children.