Temasek set to buy PeakXV’s 20% stake in Cloudnine

livemint.com:

Subscribe to enjoy similar stories. Singapore's Temasek Holdings is close to buying Peak XV's 18-20% stake in Bengaluru-based Cloudnine Hospitals for around $125 million, three people aware of the development said. The deal, which has been in the works for more than a year and a half, may value the specialist mother and baby care hospitalat around $600 million, the people cited above said on the condition of anonymity.

It will also mark Peak XV's exit from the company after 11 years—In 2013, Cloudnine had raised $16 million in a round led by Peak XV, then called Sequoia Capital. Temasek's $600 million stake purchase includes a small primary round that happened earlier this year, as well as the upcoming share purchase from Peak XV, one of the two people cited above said. Cloudnine is realigning its cap table ahead of a public listing expected next year, the person added.

This would be Cloudnine's second attempt at an initial public offering (IPO). In 2022, the company had filed draft papers for a ₹1,200 crore IPO. “Cloudnine does not need fresh capital; this is more like a pre-IPO round," the second person added.

In the March quarter, the company raised ₹359 crore from Temasek and TPG Newquest in a primary round. Peak XV and Temasek spokespersons declined to comment. Queries sent to a company spokesperson remained unanswered.

An Icra report in April said Cloudnine's consolidated revenue grew 26.3% to ₹946.7 crore during the first nine months of FY24. “On a standalone basis, the company’s revenues stood at ₹837.2 crore during 9M FY2024. The company’s operating margins stood at 13.8% in 9M FY2024 against 14.3% in FY2023 on account of losses from new centres opened in Q4 FY2023 and 9M FY2024.