The initial public offering (IPO) of Gaudium IVF & Women Health Ltd opened for bidding on , and will remain open until . The company aims to raise ₹165 crore through this offering, with ₹75 crore coming from an Offer for Sale (OFS) and the remaining ₹90 crore from the issuance of fresh shares.
Gaudium IVF’s price band has been set at ₹75 to ₹79 per equity share, with proposed listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Grey Market Premium and Subscription Status
As of today, , shares are trading in the grey market at a premium of ₹8.50 per share, indicating a potential listing gain of approximately 11% for successful allottees. This “grey market premium” (GMP) reflects investor sentiment prior to official listing.
Bidding on the second day of the IPO, as of 3:36 PM, shows a subscription rate of 2.64 times overall. The retail portion of the IPO is subscribed 3.66 times, while the Non-Institutional Investor (NII) segment is subscribed 3.77 times. This indicates strong interest from retail and NII investors.
Business Model and Financial Performance
Gaudium IVF’s business model benefits from predictable revenue streams driven by the volume of In Vitro Fertilization (IVF) cycles performed. The company operates with relatively high gross margins, typical of Assisted Reproductive Technology (ART) procedures, and improving EBITDA margins as its centers mature and achieve greater efficiency. This maturation process involves absorbing fixed costs over a larger number of procedures, leading to increased profitability.
The company’s asset-light structure supports controlled capital expenditure, leading to better return ratios and manageable leverage. This positions Gaudium IVF for sustainable cash flow generation as utilization rates increase. Improving financial performance, a scalable infrastructure, and the broader growth trends within the ART industry contribute to long-term growth visibility.
Valuation and Broker Recommendations
The IPO is currently valued at a Price-to-Earnings (P/E) ratio of 25.3x, based on FY25 earnings, at the upper end of the price band. Several financial analysts have issued recommendations regarding the IPO.
“We thus recommend a ‘SUBSCRIBE’ rating for this issue.”
— BP Equities
BP Equities highlights the company’s improving financial performance, scalable infrastructure, and the structural growth drivers within the industry as reasons for their positive recommendation.
“We recommend subscribing to this IPO. The issue appears aggressively priced. GIWHL is demonstrating strong headline growth, and with increasing awareness of IVF across India, the company is actively pursuing an expansion strategy and enabling the company to harness the potential of medical tourism.”
— Kunvarji Wealth Solutions
Kunvarji Wealth Solutions also recommends subscribing, noting the company’s growth trajectory and expansion plans, driven by increasing awareness of IVF and the potential for medical tourism.
Understanding IVF and the Growing Market
In Vitro Fertilization (IVF) is a complex series of procedures used to help with fertility or to prevent genetic diseases and help with the conception of a child. It involves retrieving eggs from a woman’s ovaries and fertilizing them with sperm in a laboratory. The fertilized egg, or embryo, is then transferred to the uterus. IVF is a significant advancement in reproductive medicine, offering hope to individuals and couples facing challenges with natural conception.
The demand for IVF services is increasing in India, driven by factors such as delayed childbearing, rising infertility rates, and growing awareness of available treatments. This growth is creating opportunities for companies like Gaudium IVF, which are expanding their infrastructure and services to meet the increasing demand. The potential for medical tourism further enhances the growth prospects, attracting patients from other countries seeking affordable and high-quality IVF treatment.
Key IPO Details
- Price Band: ₹75 – ₹79 per share
- Issue Size: ₹165 crore (Fresh Issue: ₹90 crore, OFS: ₹75 crore)
- Lot Size: 189 shares
- Minimum Investment: ₹14,931
- Basis of Allotment:
- Listing Date: (proposed)
The IPO is open to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), with half of the net issue reserved for QIBs, 15% for NIIs, and 35% for retail investors. Prior to the public offering, the company raised ₹49.5 crore from anchor investors at ₹79 per share.
