Profit Sheets

Hospital chain Cloudnine files DRHP with SEBI, plans to raise Rs 1,200 crore

March 12, 2022 09:50 AM

Hospital chain Cloudnine files DRHP with SEBI, plans to raise 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.

A Bengaluru-based super specialty mother and baby care chain, operating under the Cloudnine brand, offering end-to-end coverage of all stages of the parenthood journey has filed its draft red herring prospectus (DRHP) for its ₹1,200 crore 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.

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 Cloudnine 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 Cluster Approach:

Cloudnine was founded by Dr Kishore Kumar and Rohit MA. It started its first centre in Bengaluru in 2006, with a focus on mother and baby care focused medical care facilities. Cloudnine owns, operates and manages a network of 23 centres across six states and a union territory. It currently follows a cluster approach focusing on two key regions, the NCR (National Capital Region) and Bengaluru, Karnataka.

According to the filings as of September 30, 2021, its had a team of 1,480 medical professionals, including 196 doctors and 1,284 nurses and held medical records of more than 7.6 lakh customers. In FY21, it had assisted in 16,801 deliveries and 5,994 fertility services.

Also Read : Federal Bank subsidiary FedFina files IPO papers with SEBI

To increase customer engagement, the chain recently launched Momeaze, an expert curated ecommerce marketplace for all maternity and child related products. As on September 30,2021 its platform has hosted over 2,000 stock keeping units (SKUs) and between the months of April to September 2021.

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

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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