IPO Update: Cloudnine Hospital Chain plans Rs 1,200-Crore IPO

IPO Update: Cloudnine Hospital Chain plans Rs 1,200-Crore IPO Cloud nine, the world's largest chain of women's, child care, and fertility hospitals, wants to raise roughly Rs 1,200 crore from the public market. According to multiple sources familiar with the situation, the private equity-backed chain is expected to go public in mid-2022. In the initial public offering, about 25-30% of the company will be offered, with a large portion of that being secondary stake sales by current investors Sequoia Capital and True North. According to the sources, the promoters are also diluting a portion of their stake. The hospital network, which was founded in 2007 by neonatologist Dr.R. Kishore Kumar with his team of three co-founders: Rohit MA, M. Ramachandra and Vidya Kumar, Cloudnine Group of Hospitals is supported by True North, NewQuest and Sequoia India. The company now has 19 facilities and expects to generate over Rs 400 crore in revenue this year. Bangalore, Chennai, Pune, Mumbai, Gurgaon, and Chandigarh are among the cities where it is currently available. It will add three more projects in the Noida and Delhi regions, all of which will open in the coming calendar year. The hospital network has delivered 50,000 babies so far, with 1,000 infants born every month. Its services are exclusively for women and children, and include fertility, antenatal, maternity, neonatology, pediatrics, and genecology. Over the last four years, the company claims to have continuously achieved a compounded annual growth rate (CAGR) of over 40%. The company is considering both domestic and foreign expansion. According to Rohit M A, co-founder and managing director of Cloudnine Group of Hospitals, "our aim is to deploy four to five units (hospitals) in all specified sites across north, west, and south India each year." "We're thinking about looking into global options, particularly in the Gulf Cooperation Council and neighboring countries; it's really a combination of mental bandwidth that we can probably afford more than anything else. We're now focused on the India topic" He further added. NewQuest invested in the company in July of last year, combining a large investment with the acquisition of a secondary holding from Matrix Partners, an existing investor. This was Cloudnine's fourth round of funding. In 2013, Sequoia Capital and Matrix Partners India sponsored a second round of funding for the company, which raised Rs 100 crore ($16 million). In 2011, Matrix Partners invested Rs 45 crore in the company. In 2015, IVFA invested around 400 crore ($60 million) to buy a major minority stake in the company. Rainbow Children's Medicare Ltd, a multi-specialty paediatric hospital chain, filed a DRHP in December to collect more than Rs 2 billion through an initial public offering (IPO). Rainbow's CDC-backed public offering consists of a new issue of equity shares worth up to Rs 280 crore and a selling offer of equity shares worth up to Rs 2.4 crore.