Rainbow Children’s Medicare (RCML) has signed a definitive agreement to acquire 76 per cent stake in Prashanthi Medicare, Warangal for ₹24 crore.

The transaction values Prashanthi Hospital at an enterprise valuation of ₹32.60 crore subject to working capital adjustment. It is fully funded through RCML’s existing cash reserves and internal accruals. 

Hyderabad-based RCML will acquire a controlling stake of 76 per cent in the fully diluted equity capital and 100 per cent stake in the non-convertible redeemable preference shares (NCRPS), while Prasanthi Macha along with associates will retain a 24 per cent minority interest.

“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,’‘ Ramesh Kancharla, Chairman & Managing Director, RCML said on Saturday. 

Prasanthi Macha, Director, Prashanthi Hospital said: 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.”

This strategic acquisition strengthens its presence in southern India. It also reflects the company’s growth plans to expand into tier-II cities where specialised 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 seven cities. 

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. 

Published on June 28, 2025