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Kids Clinic India Limited (Cloudnine) IPO Company Profile:

Kids Clinic India Limited is the leading brand in the super-specialty mother and baby-care space in Fiscal 2021, based on the highest revenue and highest number of hospitals across the major cities as of Fiscal 2021 among the super-specialty mother and baby care hospitals at 18 centers as of September 30, 2021, and at 23 centers as of the date of this Draft Red Herring Prospectus. The private maternity healthcare market in Fiscal 2020 was ₹ 208 billion and is projected to grow to ₹ 261 billion in Fiscal 2026. The company offers end-to-end coverage of all stages of the parenthood journey, beginning with fertility treatments, through maternity, neonatology, and pediatrics, dedicated to the holistic well-being of mother and baby. Geographically, Kids Clinic India Limited continues to focus on two key regions, the NCR (National Capital Region) and Bengaluru, Karnataka for its expansion plans in the medium term.


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    Kids Clinic India Limited (Cloudnine) IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹5 per share
    Price Not Available
    Lot Size Not Available
    Issue Size Not Available
    Fresh Issue [●] shares

    (aggregating up to ₹300.00 Cr)

    Offer for Sale 13,293,514 shares

    (aggregating up to ₹[●]Cr)

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 75% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 10% of the Offer

    Kids Clinic India Limited (Cloudnine) IPO Financial Analysis:

    Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR
    Revenue from Operations 371.65 554.59 516.30 418.18 9.9%
    Other Income 3.97 11.98 9.69 10.19  
    Operating Cost 81.95 97.60 83.10 70.28  
    Professional fees to consultant doctors 101.22 167.76 163.73 136.76  
    Employee Cost 64.79 112.16 101.09 88.84  
    Other expenses 64.05 108.59 104.54 99.35  
    EBITDA 63.62 80.46 73.53 33.15 34.4%
    EBITDA margin% 17.12% 14.51% 14.24% 7.93%  
    Depreciation 46.87 72.41 67.80 65.18  
    Interest 26.43 42.46 42.08 42.64  
    LBT -9.68 -34.42 -36.34 -74.68  
    Total tax 0.18 0.29 -6.72 -9.21  
    LAT -9.86 -34.71 -29.62 -65.47  
    Dep./revenue% 12.61% 13.06% 13.13% 15.59%  
    Int./revenue% 7.11% 7.66% 8.15% 10.20%  

    Kids Clinic India Limited (Cloudnine) IPO Revenue from Operations:

    Segment 6M FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % FY-19(in cr.) % CAGR
    Sale of services – Healthcare services 326.30 87.80% 475.51 85.74% 444.52 86.10% 358.67 85.77% 9.9%
    In-patient 205.60 55.32% 347.38 62.64% 329.22 63.76% 264.05 63.14% 9.6%
    Out-patient 120.70 32.48% 128.13 23.10% 115.30 22.33% 94.62 22.63% 10.6%
    Sale of goods – Pharmacy good 42.76 11.51% 74.85 13.50% 67.93 13.16% 56.26 13.45% 10.0%
    Other operating revenue 2.59 0.70% 4.23 0.76% 3.86 0.75% 3.25 0.78% 9.2%
    Total 371.65 100.00% 554.59 100.00% 516.30 100.00% 418.18 100.00% 9.9%

    Pre-Offer shareholding of the Selling Shareholders:

    S. No. Name of the Selling Shareholder No. of Equity Shares

    held

    Percentage of the pre-Offer paid

    Up equity share capital (%)

    1. True North Fund V LLP 11,734,500 26.56%
    2. SCI Growth Investments II 6,156,366 13.93%
    3. Indium V (Mauritius) Holdings Limited 4,342,540 9.83%
    4. Dr. R Kishore Kumar 5,478,354 12.40%
    5. Scrips ‘N’ Scroll India Private Limited 4,198,354 9.50%
    Total   31,910,114 72.22%
    Other Shareholders
    6. Rohit M A 349,492 0.79%
    7. M A Usha Rani 175,320 0.40%
    8. NewQuest 11,114,960 25.16%
    Total   43,549,886 98.57%

    Kids Clinic India Limited (Cloudnine) IPO Offer for Sale Details:

    S. No. Name of the Selling Shareholder Number of Equity Shares

    being offered in the Offer for Sale (Up to)

    1. True North Fund V LLP 5,763,392 Equity Shares
    2. SCI Growth Investments II 3,506,408 Equity Shares
    3. Indium V (Mauritius) Holdings Limited  2,171,270 Equity Shares
    4. Dr. R Kishore Kumar 924,444 Equity Shares
    5. Scrips ‘N’ Scroll India Private Limited 928,000 Equity Shares

    Kids Clinic India Limited (Cloudnine) IPO Strengths:

    • Maternity care remains largely unorganized with standalone nursing homes and maternity clinics accounting for 65% to 70% of the market. As a result, organized super-speciality mother and baby care chains such as Kids Clinic India Limited continue to eat into the market share of the unorganized by offering a better experience, superior clinical outcomes, contemporary customer reach-out strategies, and faster expansions

    • The parenthood journey is managed carefully through the comprehensive care of a team of doctors, nutritionists, fertility counselors, Lamaze experts, and lactation consultants, all coordinated by an exclusive customer relationship executive assigned to the customer. Kids Clinic India Limited’s deep understanding of the requirements and preferences of its customers in their entire perinatal journey has enabled it to provide quality services for the holistic well-being of both mother and baby

    • Kids Clinic India Limited is the only healthcare facility chain in India that is a part of the Vermont Oxford Network (VON) which has established a global database of approximately 1,200 centers regarding the quality, utilization, costs, outcomes and effectiveness of medical treatments and health care practices, and allows it to include its data for analysis at the individual hospital level, review the aggregated data for the centers and compare the individual centre data with aggregated data for the centers of the company

    • Kids Clinic India Limited operates a full-stack database infrastructure bolstered by AI and ML, to ensure digitization from lead and funnel management to final transactions among various players in the customer journey. Data-driven analytical insights also allow for customer profiling and segmentation for bespoke and effective engagement.

    • As Kids Clinic India Limited attracts top talent in their respective sub-specialisations, the association between the top doctors in the field and the brand, will strengthen, which benefits the doctors’ reputation and profiles, and attracts other talented professionals.

    Kids Clinic India Limited (Cloudnine) IPO Risk Factors:

    • Kids Clinic India Limited is subject to various operational, reputational, medical and legal risks associated with the operations of its healthcare services. An inability to provide quality healthcare catering to the needs of its customers could adversely affect its reputation, business prospects, and financial performance.

    • Kids Clinic India Limited’s performance and growth strategy depend substantially on its ability to attract and retain experienced doctors, nurses, and other healthcare professionals in a highly competitive industry. The demand for doctors is highly competitive. The availability of specialist doctors is limited by the significant training period involved. Skilled doctors are in high demand in India, making it difficult to hire and retain senior doctors

    • Kids Clinic India Limited’s business depends on the strength of its brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against the company, even if untrue, may adversely affect the brand, reputation, and trust in, the services, which could result in a material adverse impact on the business, financial condition, results of operations and prospects of the company

    Kids Clinic India Limited (Cloudnine) IPO Objects of the Offer:

    The net proceeds of the Fresh Issue, i.e., gross proceeds of the Fresh Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:

    • Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company;
    • Setting up new centers at various locations;
    • Acquisition of further shareholding in the Subsidiary, Acquity Labs; and
    • General corporate purposes

    Kids Clinic India Limited (Cloudnine) IPO Prospectus:

    Registrar to the offer:

    KFin Technologies Private Limited

    Tel: + 91 40 6716 2222

    E-mail: kcil.ipo@kfintech.com

    Website: www.kfintech.com

    Investor Grievance ID: einward.ris@kfintech.com

    Contact Person: M. Murali Krishna

    SEBI Registration No: INR000000221