EQT-backed Indira IVF confidentially files draft papers for Rs 3,500 cr IPO

The fertility firm files draft papers via the confidential filing route

Fertility firm Indira IVF, owned by investment company EQT, has filed for draft papers with market regulator Securities and Exchange Board of India (Sebi) via the confidential filing route, sources in the know said.

 

The issue size is estimated to be around Rs 3,500 crore, and will entirely consist of an offer for sale (OFS). It is learnt that the EQT component would be Rs 2,900 crore, and the balance would be by founders and promoters (Rs 600 crore).

 

While multiple industry sources close to the development confirmed this, emails sent to Indira IVF remained unanswered till the time of going to press. EQT declined to comment.

 

Udaipur-headquartered Indira IVF has become the fifth company to choose the confidential filing route for its IPO, following value fashion retailer Vishal Mega Mart.

 

EQT had bought a controlling stake in Indira IVF in 2023 when the fertility firm was valued at over Rs 10,000 crore, and BPEA EQT paid around Rs 6,000 crore for the 60 per cent stake in the company that it acquired from TA Associates and the company’s founders – Dr Ajay Murdia, Dr Kshitiz Murdia and Dr Nitiz Murdia. BPEA EQT is part of EQT, a Swedish global investment firm.

 

The Murdias continued to retain a significant stake. Prior to the EQT deal, Boston, Massachusetts-based TA Associates owned a 47 per cent stake in Indira IVF, and the promoters held 53 per cent.

 

Ajay Murdia founded Indira IVF in 1988. It is the market leader within assisted reproductive technology (ART) services in India and completes roughly 40,000 IVF cycles annually. It also ranks among the top five players globally. It posted a turnover of Rs 1,205 crore for FY23, with an earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin of 30-35 per cent.

 

India completes around 300,000 IVF cycles annually, and over the next decade, the number of cycles done across the country is expected to grow around 15 per cent at a compound annual growth rate. This trend is supported by the rising awareness about infertility treatments, growing middle class, declining fertility rates, and increasing marriage age.

 

What is Confidential Filing?

 

The confidential filing route, introduced in 2022, enables companies to withhold sensitive information from the public domain until they are ready to proceed with their IPO. This approach helps issuers avoid unwarranted public scrutiny and opportunistic litigations. However, most companies still prefer the traditional route for filing their DRHPs with Sebi, as it is often considered more cost- and time-effective.

 

Once Sebi issues its observations on the confidentially filed offer document, companies are required to make it public. The updated DRHP must remain in the public domain for at least 21 days, during which stakeholders can provide feedback. After this period, the company can move forward with its IPO.

 

The confidential filing mechanism allows companies to keep their DRHP private until they finalise their listing plans. Tata Play was the first company to utilise this route, though it eventually scrapped its IPO plans. Similarly, SoftBank-backed hotel aggregator Oyo made a confidential filing in 2023, but did not proceed with its IPO. In April 2024, food delivery giant Swiggy also opted for the pre-filing route for its IPO. To date, only Swiggy and Vishal Mega Mart have successfully gone public after making confidential filings.

 

Companies opting for the confidential filing route are permitted to conduct limited marketing to institutional investors to gauge demand and determine fair pricing. Additionally, Sebi’s observations for confidentially filed IPOs remain valid for 18 months, compared to 12 months for traditional filings. If a company fails to launch its offering within this timeframe, the observations lapse, necessitating a re-filing of the offer document.