Temasek Holdings Poised to Acquire Peak XV's Stake in Cloudnine Hospitals

The Singapore-based Temasek Holdings is close to buying Peak XV's 18-20 per cent stake in Cloudnine hospitals, according to the Mint.

It is reported that the deal has been in the works for more than a year and a half, and the specialist mother and baby care hospital may be valued at $600 million.

The $600 million stake purchase by Temasek includes a small primary round that happened earlier this year, as well as the upcoming share purchase from Peak XV.

Peak XV and Temasek spokespersons declined to comment on the development. Mint's queries to the spokesperson were reportedly unanswered.

The move will see Peak XV exit from the company after 11 years. Cloudnine had reportedly raised $16 million in a round led by Sequoia Capital in 2013, now rechristened as Peak XV.

Cloudline is restructuring its capital table ahead of its public listing anticipated for next year. This would be its second attempt at enlisting itself after it had filed its draft papers for a Rs 1,200 crore IPO in 2022.

Reportedly, Cloudnine does not need fresh capital and it is seen more like a pre-IPO round, a person who was aware of the matter told Mint.

Cloudnine is a network of super-speciality hospitals catering to Mother and baby care, including fertility, maternity care, gynaecology, paediatrics, neonatology, baby care and stem cell banking. It was founded in 2006 by Dr R Kishore Kumar, Rohit M.A., M Ramachandra and Vidya Kumar.

Cloudnine has 34 centres across India in places like Bengaluru, Delhi, Mumbai, Chennai, Gurgaon, Ludhiana and Chandigarh. It plans to set up more hospitals across metro and tier-I cities.

The company had raised Rs 359 crore from Temasek and TPG Newquest in a primary round in the March quarter.

Cloudnine's consolidated revenue grew 26.3 per cent to Rs 946.7 crore during the first nine months of FY24 as per an ICRA report. It plans to incur capex of approximately Rs 280-300 crore in FY2025.