Gaudium IVF and Women Health Ltd. Launched its initial public offering (IPO) today, . The New Delhi-based In Vitro Fertilisation (IVF) treatment provider is aiming to raise ₹165 crore (approximately $20 million USD) from the primary market through its IPO.
Understanding the Grey Market Premium
As of today, , the grey market premium (GMP) for the Gaudium IVF IPO stands at ₹8.5 per share, according to InvestorGain. This means shares are currently trading in the unofficial market at approximately ₹87.5 per share, based on the upper limit of the IPO price band of ₹79. The GMP suggests a potential listing gain of around 10.76% for investors. It’s important to remember that GMP is based on speculation and is not an official indicator of market performance.
IPO Details: Offer Size, Price Band, and Investment
The Gaudium IVF IPO consists of a fresh issue of 1.14 crore equity shares, representing ₹90 crore, and an offer-for-sale (OFS) of 95 lakh equity shares, totaling ₹75 crore. The price band for the IPO has been set at ₹75 to ₹79 per share, valuing the company at approximately ₹575 crore.
The lot size for the IPO is 189 shares. Retail investors must apply for at least one lot, requiring a minimum investment of ₹14,931 at the upper end of the price band. Small Non-Institutional Investors (NIIs) can apply for a minimum of 14 lots (2,646 shares), requiring an investment of ₹2,09,034. Larger NIIs require a minimum application size of 67 lots (12,663 shares), with a minimum investment of ₹10,00,377.
Key Dates for Subscription and Listing
The IPO is open for subscription until . Share allotment is scheduled to be finalized on , with refunds initiated on the same day. Shares are expected to be credited to the demat accounts of successful applicants on . The tentative listing date for Gaudium IVF shares on the NSE and BSE is .
Sarthi Capital Advisors Pvt. Ltd. Is the book running lead manager for the IPO, and Bigshare Services Pvt. Ltd. Is serving as the registrar.
About Gaudium IVF and the Use of Funds
Gaudium IVF and Women Health, established in 2015, is a provider of fertility services. The company currently operates across 30 locations in India, utilizing a hub-and-spoke model with seven hubs and 28 spokes. They partner with infertility specialists to deliver care. The company has centers in Delhi, Mumbai, Ludhiana, Srinagar, Patna, and Bengaluru.
The company intends to use the funds raised through the IPO for capital expenditure related to establishing 19 new IVF centers across India, repaying existing debt, and for general corporate purposes. This expansion aims to increase access to IVF services, particularly in underserved regions, and leverage the company’s brand recognition.
Financial Performance
For the financial year ending , Gaudium IVF reported revenue of ₹70.72 crore and a Profit After Tax (PAT) of ₹19.13 crore. In the previous financial year, , the company posted revenue of ₹47.89 crore and a PAT of ₹10.31 crore, demonstrating significant growth.
As Gaudium IVF prepares to become the first company in India’s fertility care sector to enter the public markets, investors are closely watching its performance. The success of this IPO could pave the way for further investment and innovation in the rapidly growing field of assisted reproductive technology.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and carefully review the red herring prospectus before making any investment decisions.