Mumbai, June 3 -- Private equity firm True North is looking to sell its over decade-old stake in Bengaluru-based maternal and child healthcare chain Cloudnine Hospitals as the company prepares to raise $250-300 million in a fresh funding round, according to two people familiar with the matter.

"The round will be a mix of primary and secondary, where some early investors will sell their stake," one of the people said on condition of anonymity. "A significant part of the proceeds (about $150 million) will be used towards inorganic plans in the Middle East where it is closely evaluating some opportunities."

"The company is expected to seek a higher valuation post the recent acquisition," a second person cited above said, adding that Allegr...