Indira IVF Hospital Withdraws Draft IPO Papers: A Closer Look
In a surprising turn of events, Indira IVF Hospital, one of India’s leading fertility clinic chains, has withdrawn its draft Initial Public Offering (IPO) papers, which were submitted through the confidential pre-filing route. The decision, announced on March 19, 2025, comes shortly after the release of a Bollywood biopic centered around the company’s founder, Ajay Murdia. This development has sparked speculation regarding potential regulatory concerns linked to indirect self-promotion, raising questions about the timing of the film’s release in relation to the IPO filing.
The Context of the Withdrawal
Indira IVF initially submitted its draft papers to the Securities and Exchange Board of India (SEBI) on February 13, 2025. The timing of the IPO filing coincided with the premiere of the biopic, which starred renowned actors Anupam Kher and Esha Deol and debuted on March 21, 2025. Following the film’s release, reports emerged suggesting that SEBI had raised concerns about the potential for indirect self-promotion through the biopic, which could have implications for the IPO process.
However, Indira IVF has firmly denied any claims of regulatory intervention. A spokesperson for the company stated, "The company decided to withdraw the pre-filed DRHP pursuant to the evaluation of various factors and commercial considerations. Reports that suggest any direction from SEBI in this regard are incorrect." This assertion aims to clarify that the decision was based on internal assessments rather than external pressures.
The Appeal of Confidential Pre-Filing
Indira IVF’s approach to the IPO process through the confidential pre-filing route is becoming increasingly popular among companies in India. This method allows firms to keep their offering details private until a later stage, providing them with greater flexibility in adjusting the issue size by up to 50% until the Updated Draft Red Herring Prospectus (UDRHP) is filed.
The confidential pre-filing route has been utilized by several notable companies in recent years. For instance, edtech unicorn PhysicsWallah recently filed for an IPO confidentially, while Swiggy and Vishal Mega Mart successfully went public using this method in 2024. However, not all companies that opt for this route proceed with their IPOs; OYO, for example, took a similar approach in 2023 but ultimately did not launch its offering.
One of the key advantages of the pre-filing option is the extended timeline it offers. Companies can float an IPO within 18 months of receiving SEBI’s final comments, compared to the traditional 12-month window. This additional time can be crucial for firms looking to optimize their market entry strategy.
Financial Aspirations and Market Position
Indira IVF had ambitious plans for its IPO, aiming to raise ₹3,500 crore through a pure offer-for-sale (OFS). Of this amount, ₹2,900 crore was expected to come from EQT, a Sweden-based investment firm that backs the company, while the remaining ₹600 crore was to be contributed by the founders and promoter group. The IPO was anticipated to facilitate partial exits for investors and promoters, while simultaneously supporting Indira IVF’s growth ambitions in the rapidly expanding fertility services market in India.
As one of the largest fertility service providers in the country, Indira IVF boasts a widespread network of clinics, making it a significant player in the healthcare sector. The company’s growth trajectory has been bolstered by increasing awareness and acceptance of fertility treatments in India, alongside a growing demand for assisted reproductive technologies.
Conclusion
The withdrawal of Indira IVF’s draft IPO papers marks a pivotal moment for the company, intertwining the realms of healthcare, finance, and entertainment. While the decision has raised eyebrows and sparked speculation, the company’s assertion of internal evaluation as the primary reason for the withdrawal underscores the complexities involved in navigating the IPO landscape. As Indira IVF continues to assess its options, the broader implications of this move will be closely watched by investors and industry observers alike. The evolving narrative around the company, particularly in light of the recent biopic, adds an intriguing layer to its journey as it seeks to solidify its position in the competitive fertility services market.