Warburg Pincus (Warburg Pincus LLC), KKR & Co. Inc. (NYSE:KKR), TPG Capital (TPG Capital, L.P.), Advent International (Advent International, L.P.), CVC Capital Partners plc (ENXTAM:CVC), and Permira (Permira Advisers Ltd.), along with homegrown Kedaara Capital (Kedaara Capital Advisors LLP) are in the race to acquire a 25% stake in Cloudnine (Kids Clinic India Limited), India's largest maternity and pediatric hospital chain, said people familiar with the matter. The proposed deal is expected to value Cloudnine at about INR 100,000 million ($1 billion), the people said, adding that the initial bids are expected by July first week.

Allegro Capital is running the sale process, they said. Existing investor True North (True North Managers LLP) will make a complete exit, as part of the transaction. Others including Temasek and TPG Newquest are likely to retain their holdings, said the people cited above.

Both Temasek and TPG Newquest collectively own about 52% of Cloudnine. The promoter group owns about 10%, with the remainder held through employee stock option plans (ESOPs). ET reported in May about Cloudnine's plans to raise $200-300 million at a valuation of $1 billion.

True North entered Cloudnine in 2015 with a INR 4,000 million investment. Previous investors in Cloudnine include Matrix Partners and Sequoia Capital. Spokespeople at Permira and KKR declined to comment.

True North, Warburg Pincus, Kedaara Capital, CVC, TPG Capital, and Advent didn't respond to email queries.