Business Standard

BPEA to acquire 60% stake in India's largest fertility clinic Indira IVF

The deal values Indira IVF at $1.1 billion, cementing its position as a global leader in fertility services, with BPEA EQT set to become the new majority investor

Indira IVF

Indira IVF

BS Web Team New Delhi

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Asia-focused private equity fund Baring Private Equity Asia (BPEA) EQT has reached an agreement to purchase a majority 60 per cent stake in Indira IVF, the largest provider of fertility services in India and one of the top five globally in terms of annual IVF cycles according to the Economics Times.

The company, founded by Ajay Murdia in 1988, has grown from a single clinic to an extensive network of 116 centers across 20 states in India.

Over the years, Indira IVF has facilitated 125,000 successful pregnancies, contributing significantly to the field of assisted reproductive technology (ART) services.

The deal has valued Indira IVF at $1.1 billion (approximately Rs 9,000 crore), according to the report by ET. This valuation highlights the potential and growth opportunities in the Indian IVF industry, which is estimated to be a $12-billion market expanding at a 20 per cent compound annual growth rate (CAGR).

As earlier reported by Business Standard, many global investors, including Baring PE Asia EQT, Blackstone, Bain Capital, Advent International and TPG Capital had shown interest in acquiring a majority stake in Indira IVF, submitting non-binding bids that placed the company's value between $1 billion to $1.2 billion.

The new investor, BPEA EQT, is expected to hold about 60 per cent ownership, with existing investor TA Associates selling its 47 per cent stake, and the promoters also diluting some additional stakes.

In the financial year 2023, Indira IVF recorded revenue of Rs 1,250 crore with earnings before interest, taxes, depreciation, and amortisation (Ebitda) ranging from Rs 375-410 crore, added the report. This financial performance further solidifies the company's position as a market leader in India's ART sector.

In the official release by the company, Ashish Agrawal, Partner at BPEA EQT, stated, "Fertility services and reproductive health is a large and fast-growing opportunity in India and Indira IVF is a pioneer in this space. We see strong potential in further expanding India IVF’s presence across India and entering adjacent markets, while continuing to invest in its R&D capabilities and technology, drawing on EQT’s in-house expertise within healthcare and digitalisation."

Kshitiz Murdia, CEO of Indira IVF added, "The ART sector in India is at an exciting stage of development and we are lucky to have a great company, partners, and colleagues to lead the growth of this segment. BPEA EQT is one of the largest healthcare investors globally and has a deep understanding of the IVF sector. We, at Indira IVF, are on a mission to provide world-class IVF services to more couples with best-in-class clinical outcomes."

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First Published: Jul 28 2023 | 11:45 AM IST

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