Mumbai: Global personal fairness firms TPG Capital, Creation Worldwide, CVC Capital Companions and Permira have been shortlisted for the following spherical of discussions to amass a major minority stake in Cloudnine, India’s largest maternity and paediatric hospital chain, in keeping with individuals accustomed to the matter.
The proposed transaction is predicted to worth Cloudnine at about ₹11,000 crore (round $1.2 billion) and these traders are anticipated to start due diligence shortly, with binding bids more likely to be submitted by early August, the individuals mentioned.
The deal is more likely to contain the sale of the whole 25% stake held by present investor True North. As well as, Cloudnine could difficulty 5-10% recent main shares to the incoming investor, relying on the ultimate valuation and capital necessities, in keeping with the individuals.
True North is predicted to make a full exit by means of the transaction, whereas present shareholders Temasek and TPG NewQuest are more likely to retain their holdings. Collectively, Temasek and TPG NewQuest personal about 52% of the corporate, whereas the promoter group holds round 10%, with the rest distributed by means of worker inventory possession plans (ESOPs).
Various global personal fairness traders, together with Warburg Pincus, KKR, TPG Capital, Creation Worldwide, CVC Capital Companions and Permira, together with home buyout agency Kedaara Capital, had expressed curiosity within the asset, ET had reported on June 4.
Spokespersons of Permira and TPG declined to remark, whereas emails despatched to Creation Worldwide, CVC Capital Companions and True North didn’t elicit any responses until press time.
Based in 2006 by neonatologist Dr R. Kishore Kumar together with co-founders Rohit M.A., M. Ramachandra and Vidya Kumar, Bengaluru-based Cloudnine has emerged as India’s main maternity and paediatric healthcare platform.
Operated by Children Clinic India Ltd., Cloudnine had 40 centres throughout main Indian cities as of March 2025. In a transformative transfer, the corporate not too long ago acquired a 90% stake in Apollo Cradle and Apollo Fertility from Apollo Well being and Life-style Ltd. at an enterprise valuation of ₹1,550 crore.
Following the acquisition, the mixed entity will function greater than 55 centres throughout key markets, considerably strengthening its management place in ladies’s and youngster healthcare. Cloudnine reported income of about ₹2,000 crore and earnings earlier than curiosity, taxes, depreciation and amortisation of about ₹300 crore for 2025-26, in keeping with individuals with data of the matter.
The corporate has constructed a robust presence throughout Bengaluru, Mumbai, Pune and Delhi-Nationwide Capital Area, providing a complete suite of providers spanning maternity care, obstetrics and gynaecology, paediatrics, neonatology, fertility remedy and stem-cell banking.
Cloudnine has attracted backing from a number of marquee traders through the years. Early traders included Matrix Companions India and Sequoia Capital India, which invested in 2011 and 2013, respectively. True North entered the corporate in 2015 with an funding of about ₹400 crore ($60 million). In 2021, TPG NewQuest (previously NewQuest Capital) acquired Matrix’s stake and subsequently elevated its publicity to the enterprise. In 2023, Singapore’s Temasek invested round ₹500 crore, alongside a recent capital infusion from TPG NewQuest.
In 2022, Cloudnine filed draft papers for an preliminary public providing to boost about ₹1,200 crore. Nevertheless, the itemizing plans had been deferred amid risky market circumstances.
India’s maternal and youngster healthcare market is estimated at almost ₹30,000 crore and is predicted to develop at a compound annual charge of round 15% over the following few years.
The organised section is dominated by a handful of specialized hospital chains, together with Hyderabad-based Rainbow Youngsters’s Medicare, Bengaluru-based Motherhood Hospitals, Cloudnine and Kangaroo Care.
Non-public fairness traders have been more and more energetic within the ladies’s and youngsters’s healthcare section, attracted by robust demographic tailwinds, growing healthcare spending and the rising shift in the direction of organised healthcare suppliers.
TPG Development is already an investor in Motherhood Hospitals, India’s second-largest mother-and-child healthcare chain. Earlier this 12 months, Danish life sciences investor Novo Holdings acquired a 49% stake in Surya Hospitals from personal fairness agency Sealink Capital Companions, underscoring rising investor curiosity within the sector.
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