India’s healthcare space is seeing steady action in the primary market, and this time the spotlight is on the fertility treatment segment. Gaudium IVF and Women Health is opening its Rs 165 crore IPO for subscription starting today, February 20. The issue will remain open until February 24, with shares expected to list on February 27 on both the BSE and NSE.
As the IPO is set to open today, Let’s take a look at what matters most before you decide whether to apply –
Gaudium IVF IPO: Issue size, price band and valuation
The IPO is a combination of fresh capital and promoter exit. Out of the total Rs 165 crore issue size, Rs 90 crore will come from a fresh issue of shares, while Rs 75 crore will be through an offer for sale (OFS) by existing shareholders.
Furthermore, the price of the issue is set between the range of Rs 75-79 per share. The minimum lot size for investors is 189 shares, which means a retail investor would need to invest at least around Rs 14,931 at the highest price band.
After the three day bidding price, the basis of allotment is expected to be finalised on February 25, with refunds and credit of shares likely on February 26. Listing is tentatively scheduled for February 27.
Gaudium IVF IPO: Grey market trend and listing expectations
In the unofficial grey market, the IPO has been commanding a premium of around Rs 8.5 per share. Based on the upper price band of Rs 79, this indicates a possible listing price near Rs 87.5, translating into an estimated premium of around 11%.
However, it is important to understand that GMP are not regulated and can change quickly depending on market mood. They only offer an early indication of demand and should not be seen as a guarantee of listing gains.
Gaudium IVF IPO: Business model and expansion strategy
Gaudium IVF and Women Health which incorporated in 2015, operates in the fertility treatment space.
The company provides assisted reproductive technology services through a hub-and-spoke model.
The company follows a hub-and-spoke structure. Advanced procedures are centralised at key hub centres. Smaller centres help the company reach patients across different regions.
The company plans to expand into underserved regions where fertility services are limited. It wants to increase its presence in cities that currently have fewer IVF centres. The aim is to use its existing brand and network to attract patients in these markets.
Gaudium IVF IPO: Fund utilisation
Out of the total IPO, Rs 90 crore is being raised through a fresh issue of shares. Around Rs 50 crore will be used as capital expenditure to set up 19 new IVF centres across India.
Another Rs 20 crore is allocated for repayment or pre-payment of certain borrowings. The remaining funds will be used for general corporate purposes, which may include working capital and operational needs.
Gaudium IVF IPO: Reservation, lead managers and structure
The IPO structure follows the standard allocation pattern. Up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.
Sarthi Capital Advisors is acting as the sole book running lead manager to the issue, while Bigshare Services is the registrar.