TPG Capital, Permira lead race for significant stake in Cloudnine

Mumbai: Global private equity firms TPG Capital and Permira have emerged as frontrunners for a significant minority stake in Cloudnine, India's largest maternity and pediatric hospital chain, said people familiar with the matter.

The proposed deal is expected to value Cloudnine at around ₹11,000 crore ($1.15 billion), the people said.

ET reported in June that TPG, Permira, Advent International, and CVC Capital Partners were among the shortlisted bidders for the next round of the sale process.

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

The transaction will involve sale of the entire 25% stake held by private equity firm True North. In addition, the company is expected to issue 5-10% fresh primary shares to the incoming investor, depending on the final valuation and its capital requirements, the people said.

It will mark True North's full exit from Cloudnine after more than a decade of investment. True North first invested in Cloudnine in 2015, infusing ₹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 10%, while the balance is held through employee stock ownership plans (ESOPs) and other shareholders.

Following its acquisition by TPG in 2021, NewQuest has been operating as the firm's Asia-focused secondaries and private credit platform. TPG Growth, the growth investment arm of TPG, also owns a minority stake in Motherhood Hospitals, India's second-largest mother-and-child healthcare chain.

Several global PE firms, including Warburg Pincus, KKR, TPG Capital, Advent International, CVC Capital Partners and Permira, along with domestic buyout firm Kedaara Capital, had expressed interest in the asset, ET had reported.

Permira, TPG spokespersons declined to comment. True North didn't respond to an email query.

Founded in 2006 by neonatologist Dr R Kishore Kumar along with cofounders Rohit MA, M Ramachandra, and Vidya Kumar, Bengaluru-based Cloudnine Hospitals is a popular brand in maternity and paediatric healthcare. Operated under Kids Clinic India, Cloudnine had 40 centres as of March 2025 across major cities.

Cloudnine significantly strengthened its leadership in India's maternity and women's healthcare market through the acquisition of Apollo Cradle and Apollo Fertility in May 2026. The transaction expanded its network to more than 55 centres across major markets, substantially enhancing its presence in maternity, fertility, neonatal and paediatric care.

The deal, which valued Apollo Cradle at ₹1,550 crore, also gave Cloudnine access to Apollo Cradle's strong footprint in cities such as Hyderabad, Bengaluru, Chennai, Delhi NCR and Punjab, while adding Apollo Fertility's nationwide network of 20 IVF centres.

Cloudnine posted a revenue of ₹2,000 crore and an Ebitda of ₹300 crore in FY26, people said.

The mother & childcare market in India is estimated at about ₹30,000 crore and is expected to grow 15% compounded annually over the next few years.

London-headquartered investment firm Permira manages 90 billion of committed capital across its private equity and private credit strategies. The firm invests in buyout and growth opportunities across the technology, consumer, healthcare and services sectors.

Globally, Permira has built a strong healthcare portfolio, with investments including Australia's I-MED Radiology Network, the country's largest diagnostic imaging services provider, alongside several other healthcare businesses.

The firm entered India in April this year with its maiden investment of $100 million in business services and real estate platform SILA, marking the beginning of its expansion in one of its key growth markets.