Indira IVF has withdrawn its draft red herring prospectus (DRHP) for its planned Rs 3,500 crore initial public offering (IPO) following objections from the Securities and Exchange Board of India (SEBI). The regulatory body raised concerns over the timing of a Bollywood movie, Tumko Meri Kasam, which allegedly promotes the company and its founder. The film’s release coincided with Indira IVF’s IPO process, prompting SEBI to scrutinize its impact on investor perception.
Founded in Udaipur in 2011, Indira IVF had filed its draft offer document last month, but on March 19, the company pulled back its IPO plans. The movie, directed by Vikram Bhatt, narrates the life of Dr. Ajay Murdia, the founder of Indira IVF, and features actors Anupam Kher, Adah Sharma, Ishwak Singh, and Esha Deol. Kher plays the role of Dr. Murdia, who is credited with transforming fertility treatment in India. Merchant banker sources indicated that SEBI viewed the film as potential indirect advertising at a crucial time when the company was looking to raise funds from the public market.
Neither SEBI nor Indira IVF responded to queries seeking clarification on the issue. The film’s depiction of Dr. Murdia’s journey raised concerns about possible influence over investor sentiment, making SEBI cautious about allowing the IPO to proceed. The market regulator has strict norms against promotional activities that could be interpreted as an attempt to boost a company’s valuation before a public listing.
Indira IVF, backed by private equity firm BPEA EQT, operates over 150 fertility clinics across India. It has grown into one of the leading fertility service providers in the country, offering consultations and treatment. The company was expected to use the IPO proceeds for expansion and technological advancements in assisted reproductive treatments. Industry insiders believe that the IPO withdrawal does not signal financial instability but rather a precautionary move in response to regulatory concerns.
The controversy surrounding the IPO comes at a time when India’s fertility industry is experiencing rapid growth. Rising infertility rates, increasing awareness about assisted reproductive technologies, and a growing acceptance of IVF treatments have fueled demand for specialized fertility services. Companies like Indira IVF have played a crucial role in making fertility treatments accessible to a wider population.
The sudden withdrawal of the IPO raises questions about the intersection of business and entertainment, especially when personal narratives are involved. While corporate leaders often inspire biopics, the timing of such releases can lead to unintended regulatory scrutiny. SEBI’s concerns highlight the need for clear guidelines on promotional content linked to companies seeking public investments.
Market experts suggest that Indira IVF may refile its IPO application once regulatory concerns are addressed. The company might need to demonstrate that the film does not serve as a promotional tool for the IPO. If SEBI remains unconvinced, the company may have to delay its listing plans further.
Despite the setback, Indira IVF’s growth trajectory remains strong. Its nationwide presence and success in fertility treatments have positioned it as a leader in the sector. The company’s withdrawal from the IPO process is likely a temporary hurdle rather than a long-term obstacle. Investors and industry watchers will closely follow how Indira IVF navigates SEBI’s objections and whether it decides to pursue another IPO attempt in the near future.
The incident also underscores SEBI’s proactive approach in ensuring that public offerings remain transparent and free from undue influence. While the regulator’s stance might appear strict, it reinforces investor confidence in India’s financial markets. Companies planning IPOs in the future may now be more cautious about any coinciding promotional activities that could attract regulatory intervention.
For now, Indira IVF continues its operations unaffected, focusing on expanding its services and maintaining its position as a trusted fertility treatment provider. Whether the company reschedules its IPO or takes an alternative funding route, its influence in the healthcare sector remains undisputed.
Indira IVF’s decision to withdraw its IPO also highlights the growing regulatory scrutiny on businesses that intersect with media and entertainment. The fertility sector, like many others, is increasingly reliant on branding and public trust, making visibility crucial. However, SEBI’s move signals that any indirect promotional activities around IPO announcements will face close examination. Experts believe that companies must now be more strategic in managing their public image during fundraising efforts.
The film Tumko Meri Kasam continues to generate interest due to its portrayal of Dr. Ajay Murdia’s journey. While the movie may not have been designed as a direct marketing tool, its release alongside the IPO application made it difficult to ignore the potential impact on investor sentiment. SEBI’s concerns reflect broader efforts to prevent any possible market manipulation through narrative-driven promotions. If the film had released after the IPO or much earlier, it might not have drawn such scrutiny.
Indira IVF’s backer, BPEA EQT, remains a key player in India’s healthcare investment landscape. The firm has invested heavily in expanding Indira IVF’s presence, and despite the IPO delay, it is expected to continue supporting the company’s growth. Some analysts suggest that Indira IVF could explore private fundraising options to maintain its expansion plans while it navigates regulatory challenges.
The setback also raises questions about how companies in India’s booming healthcare industry approach public listings. With increasing investor interest in the healthcare sector, SEBI’s cautious stance sets a precedent for future IPO aspirants. Firms planning to go public must ensure that their promotional activities, whether through films, books, or media endorsements, do not inadvertently trigger regulatory concerns.
Despite the temporary roadblock, Indira IVF’s market position remains strong. The company continues to expand its network, invest in research, and improve fertility treatment accessibility. Patients and investors alike will watch closely to see how the company restructures its IPO plans or finds alternative avenues to raise capital. Whether it chooses to refile its DRHP or seeks private investment, Indira IVF’s next steps will determine its growth trajectory in India’s rapidly evolving healthcare sector.