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Hospital chain Cloudnine files ₹1,200 cr DRHP for IPO

Bengaluru-based super specialty mother and baby care chain, operating under the Cloudnine brand, has filed its draft red herring prospectus (DRHP) for its initial public offering (IPO).

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.

As per market sources, the company looks to raise around Rs. 1,200 cr.

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.

The proceeds from its fresh issuance worth Rs 95 crores for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company, Rs 117.90 crore for setting up seven new Mother and Baby centres at various locations over the next few years, Rs 12.71 crore for acquisition of 49 percent stake in its subsidiary, Acquity Labs Private Limited besides general corporate purposes.

Founded by Dr. Kishore Kumar and Rohit MA, Cloudline started its first centre in Bengaluru, Karnataka in 2006, with a vision to establish world-class mother and baby care focused medical care facilities. It owns, operates and manages a network of 23 centres across six states and one Union territory in India.

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

The total addressable market for private maternity healthcare in fiscal 2020 was Rs 20,800 crore and projected to grow at CAGR of 11percent to 12 percent from fiscal 2021 to fiscal 2026 to reach Rs 26,100 crore in fiscal 2026.

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

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