Gaudium IVF IPO: Issue opens on February 20; 10 key risks investors should know from the RHP

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):

Gaudium IVF IPO: Key Risks

1. As of the date mentioned, the company has contingent liabilities amounting to ₹4,499.34 lakhs (including accrued interest), compared to a net worth of ₹5,885.47 lakhs for the period ending September 30, 2025. These liabilities have not been accounted for in their financial statements, and should they materialize, they could negatively impact the company's financial stability.
2. The company relies on a limited number of embryologists, and losing these key personnel or failing to attract and retain them could have a detrimental effect on its business, financial health, and operational performance.
3. The company relies heavily on healthcare professionals, including doctors and nurses, and its operations will be significantly affected if it cannot attract and retain these individuals. The attrition rates for employees for the periods ending September 30, 2025, fiscal 2025, fiscal 2024, and fiscal 2023 were 31%, 63%, 51%, and 51%, respectively. Additionally, the fees for professional and consultation services paid to doctors as a proportion of their total expenses were 6.08%, 8.28%, 12.23%, and 13.78% for the period ending September 30, 2025, and for fiscal 2025, fiscal 2024, and fiscal 2023.
4. The success of the company relies heavily on the robustness of its brand and its reputation. Not maintaining or improving the brand and reputation, along with any negative media coverage or accusations against the company, even if they are false, could negatively influence the brand, reputation, and trust in the company’s services. This could lead to significant adverse effects on the company's business, financial standing, operational outcomes, and future prospects.
5. The company might encounter difficulties in further extending its operations in existing cities or in new locations where it plans to start operations, which could negatively impact the business outlook and future financial results.
6. The firm has faced negative cash flows previously. It cannot guarantee that the business will attain positive cash flow or avoid further losses in the future.
7. The company's IVF success rates were 58.74%, 58.23%, 58.03%, and 57.01% for the periods ending September 30, 2025, and in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. However, the success rates for In-Vitro Fertilization (IVF) procedures can vary and are influenced by factors outside of direct control, which could adversely affect the company's reputation and operations.
8. The proposed new IVF centers by the firm might face setbacks in their construction, development, and completion phases. Any unexpected delays in establishing the new IVF centers could result in increased costs and postponed implementation, affecting their business expansion.
9. The firm suggested expanding by establishing 19 new centers, which may depend on leased or contractual locations. The cancellation of these agreements could significantly and negatively impact their operations and future development.
10. Inability to secure a donor and obtain regulatory approvals, along with any other necessary permissions from the patients, may negatively impact their capacity to proceed with the surrogacy arrangement.

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