Rainbow Children’s Medicare, a pediatric multispecialty and perinatal care hospital chain, announces the signing of a definitive agreement to acquire a majority stake in M/s Prashanthi Medicare (Prashanthi Hospital), at Warangal, Telangana.
Established in 2015 by Dr Prasanthi Macha, Prashanthi Hospital is a 100-bed NABH-accredited facility delivering care across obstetrics, gynaecology, neonatology, paediatrics, and minimally invasive surgery.
With this acquisition, RCML aims to expand in Telangana and strengthen its presence in southern India and tier 2 cities across the country. 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 per cent in fully diluted equity capital and a 100 per cent stake in Non-convertible Redeemable Preference Shares (NCRPS), while Dr Prasanthi Macha, along with associates, will retain a 24 per cent 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 integrated into RCML’s hub-and-spoke network to ensure clinical alignment and a streamlined referral network to the Hyderabad hub for advanced tertiary and quaternary care.
