Gaudium IVF and Women Health Ltd IPO Update

Company Overview

Gaudium IVF and Women Health Ltd, a New Delhi-based IVF clinic, is set to cross ₹100 crore in revenues and is tapping India's public markets through an initial public offer (IPO).

IPO Details

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• 11.3 million shares will be offered for sale at the upper end of the price band of ₹75-79 per share, potentially raising ₹90 crore.
• The IPO opened on 20 February and closes on Tuesday, with a tentative listing on 27 February.

Governance Concerns

The company has disclosed intra-group arrangements between the founder-promoter, Dr. Manika Khanna, and her husband, Dr. Peeyush Khanna, which raise concerns about corporate governance. These arrangements include:

• Rent paid to Dr. Manika: ₹1.2 crore per year for operating the flagship center from her owned property in Janakpuri.
• Professional fees paid to Dr. Manika and Dr. Peeyush: ₹1.8 crore and ₹24 lakh per year, respectively.
• Payment for technology developed in-house: ₹2.5 crore for the development of the GAAT module.

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Financial Performance

• Revenue growth: ₹44 crore in FY23, ₹48 crore in FY24, ₹71 crore in FY25, and ₹49 crore in H1FY26.
• Expenses for the two promoters: 14% of total expenses in FY25 and 6% in H1FY26, as a percentage of revenue: 8.8% for FY25 and 3.8% for H1FY26.

Promoter Stake Sale

• Dr. Manika will offload 95 lakh shares through an offer for sale, valued at ₹75 crore at the upper end of the price band.
• After the IPO, the promoters, including her family members, will retain a 71.3% stake in the company.