Kids Clinic India, Cloudnine’s brand operator, has filed preliminary documents with SEBI to generate money through an IPO. The offering consists of a Rs 300 crore fresh issue and an offer for sale of more than 1.32 crore equity shares by founders and investors. The company may contemplate acquiring cash worth Rs 60 crore through pre-IPO placement, which would reduce the size of the real IPO.
Founders R Kishore Kumar and Scrips ‘N’ Scrolls India will sell more than 18 lakh equity shares, while investors True North Fund V LLP, Indium V (Mauritius) Holdings, and SCI Growth Investments II will sell 1.14 crore equity shares. The offer will also feature a share reservation for corporate personnel. The issue’s book running lead managers are JM Financial, Axis Capital, and ICICI Securities. Cloudnine, supported by True North and Sequoia, provides end-to-end coverage of the parenthood experience, from fertility treatments to maternity,
neonatology, and paediatrics, all focused to the holistic well-being of mother and baby. In 2006, the organization opened its first center in Bengaluru, with the goal of establishing world-class mother and babycare-focused medical care facilities. It owns, operates, and administers a network of 23 centers spread throughout six Indian states and one union territory. It takes a concentric cluster approach, focusing on two main regions: the National Capital Region (NCR) and Bengaluru, Karnataka.
Objective of the Issue
The proceeds from the issue will be utilized towards:
- repaying debts (Rs 95 crore)
- setting up new centres at various locations (Rs 117.9 crore)
- and acquisition of further shareholding in the subsidiary, Acquity Labs (Rs 12.71 crore)
- general corporate purposes
Kids Clinic India Ltd IPO Financials
| Key Financial Indicators | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Income (₹ million) | 4,283.72 | 5,259.92 | 5,665.65 |
| Revenue from Operations (₹ million) | 4,181.82 | 5,163.04 | 5,545.86 |
| Restated loss before tax (₹ million) | (746.79) | (363.43) | (344.15) |
| Operating EBITDA (₹ million) | (175.46) | 233.39 | 300.85 |
| Operating EBITDA margin (%) | (4.20)% | 4.52% | 5.42% |
Kids Clinic India Ltd IPO Key Points
Strengths
- Leading specialised mother and baby care chain operating in a fast-growing market
- Differentiated, comprehensive and customer-focused approach to the perinatal journey
- Clinical excellence and advanced medical technologies to deliver quality healthcare
- Integrated digital ecosystem and proprietary technology stack for customers, doctors and staff
- Ability to attract, train and retain high-quality doctors and staff
Risks
- An inability to provide quality healthcare catering to the needs of the customers could adversely affect the reputation, business prospects and financial performance
- unable to attract / retain doctors, nurses and other healthcare professionals
- failure to identify, understand and adapt to rapidly evolving technological advancements related to the medical equipment and technology
- Failure to negotiate on favourable pricing from the suppliers or vendors
- Unable to expand its operations in cities they are present and newer markets
Kids Clinic India Ltd Peer Comparison
| Competitor | FY19 | FY20 | FY21 |
|---|---|---|---|
| Apollo | 44,514 | 49,738 | 42,770 |
| AHLL | 5,888 | 6,964 | 6,818 |
| Fortis | 35,920 | 37,532 | 31,237 |
| Max Healthcare | 35,900 | 40,230 | 36,290 |
| Narayana Hrudayalaya | 28,582 | 31,314 | 25,910 |
Kids Clinic India Ltd IPO FAQs :
Q1. What is Kids Clinic India Limited IPO?
Ans. Kids Clinic India, which works on super-specialty women’s, childcare and fertility hospital chain Cloudnine, has filed a draft red herring prospectus with SEBI and raised Rs 1,200 Cr through an initial share sale (IPO)
Q2. When will the Kids Clinic India Limited IPO allotment be available?
Ans. Details are not available.
Q3. What will be the Kids Clinic India Limited IPO lot size?
Ans. Details are not available.
Q4. When will Kids Clinic India Limited IPO open for subscription?
Ans. Details are not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When is the Kids Clinic India Limited IPO listing date?
Ans. It usually takes ten working days from the last day of subscription to list the shares on the bourses.
Q7. Which exchanges will Kids Clinic India Limited list on?
Ans. The shares will list on BSE and NSE exchanges.
Q8. Can I submit more than one application for the public issue of Kids Clinic India Limited using one PAN?
Ans. No. Only one application is allowed against one PAN number
Q9. I have finished the application process for Kids Clinic India Limited’s IPO, but the funds are not yet debited. What is the reason?
Ans. The fund doesn’t get debited immediately. The bank will block the amount on your account when you place the bid. They will deduct the amount when IPO shares get allotted to you or else will unblock the amount on the expiration of the UPI mandate.
Q10. Who is the owner of Kids Clinic India Limited?
Ans. There are 7 Directors of Kids Clinic India Limited. They are Satish Chander Subbanna, Elizabeth Lucy Chapman, Rohit Ashok Kumar Mullangi, Kishore Kumar Rajagopal, Bharat Singh, Nupur Garg, Parthasarathy Vankipuram Srinivasa, Venkataraman Raviganesh, Nitin Agarwal.
