TPG Capital, Three Other PE Giants Eye Cloudnine's ₹11,000 Cr Stake Sale

Four global private equity firms have been shortlisted to acquire a significant minority stake in Cloudnine Healthcare, India's largest maternity and paediatric hospital chain, in a deal that values the company at ₹11,000 crore, the Economic Times reported.

TPG Capital, Advent International, CVC Capital Partners and Permira have advanced to the next round of discussions and are expected to begin due diligence shortly. Binding bids are likely to be submitted by early August. Notably, investment bank Allegro Capital is managing the sale process.

What the Deal Involves

The transaction is expected to involve the full sale of the 25% stake held by True North, which first invested in Cloudnine in 2015. In addition, Cloudnine may issue 5-10% fresh primary shares to the incoming investor, depending on the final valuation and capital requirements, the report said.

Temasek, which invested in 2024 and TPG NewQuest, which came on board in 2021, together hold around 52% of the company and are expected to retain their stakes. The promoter group holds approximately 10%, with the remainder accounted for by employee stock option plans.

Apollo holds a 9.9% stake in Cloudnine worth ₹785 crore, following a transaction completed in May this year that valued the company at approximately ₹7,930 crore, or around $825 million. Previous investors in the chain include Matrix Partners and Sequoia Capital.

The fundraising round is expected to be a mix of primary and secondary components. A significant portion of the proceeds, around $150 million, is earmarked for inorganic expansion in the Middle East, where the company is evaluating acquisition opportunities, according to Mint.

This development comes weeks after Kids Clinic India, which operates Cloudnine Hospitals, agreed to acquire the maternity, childcare and fertility businesses of Apollo Health and Lifestyle in a cash-and-stock deal valued at around $160 million.