Cloudnine files DRHP with Sebi to raise Rs 1,200 crore via IPO

Cloudnine, the leading chain of women, childcare & fertility hospitals, has filed a draft red herring prospectus (DRHP) for its initial public offering (IPO) to raise around Rs 1,200 crore.

The issue with a face value of Rs 5 per equity share consists of a fresh issue of equity shares worth up to Rs 300 crore and an offer-for-sale (OFS) of up to 13,293,514 equity shares by existing shareholders.

ET on February 8 reported about Cloudnine plans to raise about Rs 1,200 crore from the public market.

Dr Kishore Kumar Rajagopal, Scrips ‘N’ Scrolls India Private Limited, True North Fund V LLP, Indium V (Mauritius) Holdings Limited, and Sequoia Capital Investment are among the key shareholders selling in the IPO.

The offer also includes a reservation for a subscription for eligible employees.

Of Rs 300 crore fresh issuance, the company is planning to use about Rs. 95 crores for the repayment of the debt, Rs 117.90 crore for setting up seven new mother and baby centres at various locations over the next few years and Rs 12.71 crore for acquisition of 49% stake in its subsidiary, Acquity Labs Private Limited besides general corporate purposes.

Cloudnine was founded by Dr Kishore Kumar and Rohit MA, with its first centre in Bengaluru, Karnataka in 2006. The company operates a network of 23 centres across six states and one union territory in India, with an aim to provide its customers with a memorable experience and access to advanced facilities.

It currently follows a concentric cluster approach focusing on two key regions, the NCR (National Capital Region) and Bengaluru, Karnataka.

As of September 30, 2021, it has a team of 1,480 medical professionals, including 196 junior doctors and 1,284 nurses. In FY21 it assisted in 16,801 deliveries and 5,994 fertility services.

For the six months ended September 30, 2021 revenue from operations grew 42.80% to Rs 371.65 crore against Rs 260.26 crore the same period a year ago.

The private maternity healthcare market in fiscal 2020 was worth Rs 20,800 crore and projected to grow at a CAGR of 11% to 12% from FY21 to FY26 to reach Rs 26,100 crore.

JM Financial Limited, ICICI Securities and Axis Capital are the book running lead managers to the issue.

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