TPG, Permira Lead Race For INR 11,000 Cr Cloudnine Stake Sale

The deal is also expected to facilitate True North's full exit from Cloudnine after more than a decade of investment.

Global private equity firms TPG Capital and Permira have emerged as the frontrunners to acquire a significant minority stake in Cloudnine Hospitals.

The proposed deal is estimated to value India's largest maternity and paediatric hospital chain at nearly INR 11,000 crore, according to a recent report.

TPG, Permira, Advent International, and CVC Capital Partners were among the shortlisted bidders.

Due diligence of the asset is now complete, and binding bids are expected by mid-August.

The transaction will involve the sale of the entire 25% stake held by private equity firm True North.

In addition, depending on the final valuation and the company's capital requirements, Cloudnine may also issue 5-10 per cent fresh primary shares to the incoming investor.

The deal is also expected to facilitate True North's full exit from Cloudnine after more than a decade of investment. True North first invested in Cloudnine in 2015, infusing INR 400 crore into the chain.

Existing investors Temasek and TPG NewQuest, which together own about 52% of the company, are expected to retain their stakes. The promoter group holds around 18%, while the balance is held through employee stock ownership plans (ESOPs) and other shareholders.

Founded in 2006 by neonatologist Dr. R. Kishore Kumar along with co-founders Rohit M.A., M. Ramachandra, and Vidya Kumar, Bengaluru-headquartered Cloudnine has expanded to a network of 44 centres across India, offering maternity, neonatal, paediatric, fertility, and gynaecology services.

Cloudnine has attracted significant investor attention following its rapid expansion and strategic acquisitions.

Earlier this year, the Bengaluru-headquartered hospital chain acquired a majority stake in Apollo Cradle and Apollo Fertility in a deal valued at around INR 1,550 crore, strengthening its leadership in maternal, neonatal and fertility care.

Following the acquisition, the combined network is expected to operate more than 55 centres across key Indian cities.

Founded in 2006, Cloudnine has grown into one of India's leading specialty healthcare providers. The company reported revenue of around INR 2,000 crore and EBITDA of nearly INR 300 crore in FY26, supported by strong demand for premium maternity, neonatal and paediatric services.

The sale process is being managed by investment bank Allegro Capital, with binding bids expected after the completion of due diligence.

According to industry estimates, India's mother and childcare market is valued at approximately INR 30,000 crore and is projected to grow at a compound annual growth rate (CAGR) of around 15% over the coming years.

The outcome of the Cloudnine deal is expected to set a benchmark for future investments in India's women and child healthcare market, according to industry observers.

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