Kids Clinic India, The Cloudline Brand Operator Files IPO Papers To Raise Rs 1,200 Cr

True North and Sequoia-backed Kids Clinic India, which operates a super-specialty prominent women's, childcare, and fertility hospital chain Cloudnine, has filed a draught red herring prospectus (DRHP) with capital market operator SEBI to raise Rs 1,200 Cr through an initial share-sale (IPO).

The company intends to use about Rs. 95 CR of the new issuance for debt repayment, Rs. 117.90 Cr for the establishment of seven new mother and baby centers in various locations over the next few years, and Rs. 12.71 Cr for the acquisition of a 49% stake in its subsidiary, Acquity Labs Private Limited, in addition to general corporate purposes.

A fresh issuance of equity shares worth up to Rs 300 Cr and an offer-for-sale (OFS) of up to 13,293,514 equity shares by existing shareholders make up the issue, which has a face value of Rs 5 per equity share. Employees of the firm will be able to reserve shares as part of the offer.

R Kishore Kumar and Scrips 'N' Scrolls India, the company's founders, will sell around 18 lakh equity shares through an offer for sale, while investors True North Fund V LLP, Indium V (Mauritius) Holdings, and SCI Growth Investments II will sell 1.14 Cr equity shares.

In addition, before filing the DHRP with the ROC, Cloudnine Network may contemplate financing Rs 60 Cr through a pre-IPO placement. If the pre-IPO placement is successful, the size of the new issue will be decreased to reflect the amount of money obtained.

Cloudnine (Kids Clinic India)

Cloudnine provides end-to-end coverage of all stages of parenthood, from fertility therapies through pediatrics, maternity, and neonatology, all with a focus on the holistic well-being of mother and baby.

The organization, which was created by Kumar and Rohit MA, opened its first center in Bengaluru in 2006 with the goal of creating world-class medical care facilities for mothers and babies.

It owns, runs, and administers a network of 23 centers in India, spanning six states and one union territory. The NCR (National Capital Region) and Bengaluru, Karnataka, are the emphasis of a concentric cluster method.