Cloudnine Files Draft Papers With SEBI, Eyes Rs 1,200 Crore

The chain of super speciality mother and baby care hospitals, Cloudnine, has filed its draft papers with the market regulator SEBI to introduce an IPO worth Rs. 1,200 crores. As highlighted in the DRHP, this public issue will comprise both freshly issued equity shares and an offer for sale from current shareholders. Marquee investment firms like Sequoia Capital Investment and True North Fund V LLP are backing this company.

The draft red herring prospectus of Cloudnine Hospitals states that this company’s initial public offering will have a fresh issuance of equity shares worth Rs. 300 crores at face value of Rs. 5 per share. Along with that, there will be an OFS comprising the sale of 1.32 crore equity shares from existing stakeholders. The list of shareholders who will be a part of this offer for sale are –

1. Scrips ‘N’ Scrolls India Pvt. Ltd.

2. R Kishore Kumar

3. Indium V (Mauritius) Holdings Ltd.

4. True North Fund V LLP

5. Sequoia Capital Investment

The company will use the proceeds from its fresh issue to pay debts amounting to nearly Rs. 95 crores. On top of that, Cloudnine will invest around Rs. 117 crores to set up infrastructure for 7 new facilities across India. Lastly, it will use around Rs. 12 crores to acquire 49% stake in one of its subsidiaries Acquity Labs. Meeting general corporate purposes is also on the agenda.

Know About the Company – Cloudnine Hospitals

Cloudnine Hospitals extend end-to-end support to every parent in their journey. It starts from fertility treatments, then through maternity, paediatrics and neonatology, offering comprehensive care for a mother and her baby.

This company started its journey in 2006 from Bengaluru, Karnataka, with a vision of establishing a healthcare organisation that will focus on providing holistic and world-class services to mothers and babies.

Currently, Cloudnine Hospitals has a network of 23 centres across 6 states and 1 union territory of this country. The company follows a ‘concentric cluster approach’ focusing on two main regions, Bengaluru and NCR, i.e. National Capital Region.

Here are some noteworthy highlights regarding Cloudnine Hospitals that you should know about –

1. As of 30 September 2021, it has a team of 1480 medical professionals, which includes 1284 nurses 196 junior doctors.

2. In FY 2021, Cloudnine Hospitals extended 5994 fertility services and offered assistance in 16801 deliveries.

3. Moreover, for the 6 months ended on 30 September 2021, its operations revenue grew by 42.80% to Rs. 371.65 crores when compared to that of Rs. 260.26 crores in the same period last year.

Bottom Line

Cloudnine Hospitals is one of the leading speciality healthcare organisations in this country. Even though it is a relatively unknown entity due to its limited exposure, this public issue will help the company to get more visibility. Nonetheless, interested individuals should study the financials and other specifics of the company before investing.

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Frequently Asked Questions

1. Who are the book running lead managers of this public issue of Cloudnine Hospitals?

Axis Capital Ltd., JM Financial Ltd., and ICICI Securities Ltd. are the BRLMs (book running lead managers) of this public issue of Cloudnine Hospitals.

2. What is the QIB allocation of this IPO of Cloudnine Hospitals?

The QIB allocation of this IPO of Cloudnine Hospitals is 75%.

3. What is the RII and NII reservation of this IPO of Cloudnine Hospitals?

The RII and NII reservation of this Cloudnine Hospitals IPO is 15% and 10%, respectively.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.