Fertility services provider Gaudium IVF and Women Health Ltd announced on Tuesday that it has set a price band of ₹75-79 per share for its ₹165 crore initial public offering (IPO).
At the upper end of this range, the company’s valuation stands at ₹575 crore.
Gaudium IVF IPO GMP is ₹12. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gaudium IVF shares is indicated as ₹91 apiece, which is 15.19% higher than the IPO price of ₹79.
The company’s initial public offering will open for subscription from February 20 and will close on February 24. Anchor investor bidding is scheduled for February 18, as stated in its public announcement.
With this move, it will be the first company in the fertility care industry to enter the public markets.
The proposed offering includes a fresh issuance of 1.14 crore equity shares and an offer for sale (OFS) of approximately 95 lakh equity shares from promoter Manika Khanna.
Along with repaying or prepaying some loans of ₹20 crore, the proceeds from the new issue will be used for general corporate purposes and a capital investment of ₹50 crore to open 19 new IVF centers around India.
Gaudium IVF, which Khanna founded, is a leader in assisted reproductive technology in India. In order to reach a large patient base, the company uses a hub-and-spoke strategy, with seven hubs and 28 spokes spread across several states.
Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):
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