Kids Clinic India Pvt Limited, which runs maternity clinic Cloudnine, said that it has filed its draft red herring prospectus (DRHP) to raise Rs 1,200 crore through an initial public offering (IPO).
The issue will comprise primary share issuance of fresh equity worth Rs 300 crore and an offer-for-sale (OFS) by existing investors.
The proceeds from its new issuance, worth Rs 95 crore, will be used to repay or prepay all or part of the company's borrowings, Rs 117.90 crore for setting up of seven new mother and baby facilities in various locations over the next few years; Rs 12.71 crore for the acquisition of a 49% stake in its subsidiary, Acquity Labs Private Limited, as well as for general corporate purposes.
Kishore Kumar Rajagopal, Scrips 'N' Scrolls India Private Limited, True North Fund V LLP, Indium V (Mauritius) Holdings Limited, and Sequoia Capital Investment will offload shares through OFS, which also includes a subscription reservation for eligible employees.
Cloudnine, which was founded in 2006 by Kishore Kumar and Rohit MA, owns, operates, and manages a network of 23 centres spread across six states and one union territory in India.
It currently uses a concentric cluster approach, focusing on two regions: the National Capital Region and Bengaluru, with facilities also in Chandigarh, Panchkula, Chennai, Mumbai and Pune.
In 2019, Cloudnine appointed former Airtel executive Raviganesh Venkataraman as its Chief Executive.
In July, private equity (PE) firm NewQuest Capital Partners acquired a minority stake in Cloudnine
Cloudnine claimed that its revenue from operations jumped 42.80% to Rs 371.65 crore in six months, ended September 30, 2021, as compared to Rs 260.26 crore in the previous year.
In fiscal 2021, its revenue from operations increased by 7.42% to Rs. 554.59 crore, up from Rs. 516.30 crore in fiscal 2020. This was mostly due to an increase in the number of deliveries.
The company recorded a 46.14% dip in loss from 18.29 crore in the six months, ended September 30, 2020, to Rs 9.85 crore, owing to depreciation.
The company also generated Rs 217.70 crore from its 'mature' centres as of September 30, 2021, out of a total income of Rs 260.26 crore. These mature centres brought in Rs 491.62 crore in income in FY21.
The return on capital employed (ROCE) for the six months ending September 30, 2021, was 10.05%, while it was negative 0.10% for fiscal 2021.
JM Financial Limited, ICICI Securities Limited and Axis Capital Limited are the book running lead managers to the issue.
