Gaudium IVF & Women Health IPO

Gaudium operates in India’s Assisted Reproductive Technology (ART) and IVF services industry, which has witnessed strong growth due to delayed parenthood, rising infertility rates, increased awareness, and higher affordability of advanced treatments.

Key Industry Indicators (India)

The sector is transitioning from fragmented, doctor-led clinics to organized, brand-driven healthcare chains, benefiting players like Gaudium with structured processes and compliance frameworks.

Gaudium IVF and Women Health Limited provides end-to-end fertility and women healthcare services, covering diagnosis, assisted reproduction, and treatment cycles under one roof.

Key Services Offered

Target Customers

• Couples facing infertility challenges

• Women requiring reproductive health interventions

• Patients seeking ethical, regulated IVF services

Gaudium positions itself as a specialist healthcare provider, focusing on medical outcomes, ethical protocols, and patient counselling rather than volume-driven treatments.

The company operates in a highly regulated medical environment, with strict compliance requirements.

Major Applicable Regulations

Compliance with these frameworks is critical, as non-adherence can lead to penalties, suspension of operations, or reputational damage.

Key Business Risks

• Dependence on skilled doctors and embryologists

• Reputation sensitivity linked to clinical outcomes

• Regulatory changes under ART and healthcare laws

Operational Risks

• High fixed costs of medical infrastructure

• Requirement for continuous technology upgrades

Financial Risks

• Working capital intensity

• Expansion-related capital expenditure

The company is promoted by medical professionals with direct clinical involvement, ensuring operational depth and sector expertise.

Promoters

The promoters play an active role in clinical governance, strategic expansion, and brand positioning.

As disclosed in the RHP, Gaudium IVF has one wholly owned subsidiary:

The subsidiary supports international and allied business activities and does not dilute management focus from core operations.

The company is managed by a combination of medical experts and professional executives.

This structure allows separation between clinical decision-making and corporate governance.

Gaudium has constituted statutory board committees in line with the Companies Act and SEBI requirements.

Key Committees

The governance framework is designed to support public market accountability post-listing.

As per disclosures under “Outstanding Litigations and Material Developments”, Gaudium IVF and its promoters are not involved in any criminal litigation. The company has disclosed routine civil and regulatory matters, which are typical for healthcare establishments and do not materially impact business continuity.

Summary of Litigations

The absence of major litigations reduces legal overhang risk for investors, particularly in a regulated healthcare business.

Gaudium IVF operates clinics that require multiple healthcare, corporate, and regulatory approvals. The company has confirmed that all material approvals are in place.

Key Approvals Held

Any failure to renew or maintain these approvals could disrupt operations, making compliance a continuous priority.

The company has disclosed restated consolidated financials for FY23, FY24, FY25, and the period ended September 30, 2025.

Summary Financial Performance (₹ in lakh)

The financial trajectory indicates scaling operations with improving profitability, supported by clinic-level operating leverage.

Gaudium IVF uses borrowings primarily for clinic setup, medical equipment, and working capital.

Financial Indebtedness Snapshot

The company has not defaulted on any borrowings, and no borrowings are classified as willful or fraudulent.

The cash flow profile reflects a healthcare services model, where operating cash flows are critical.

Cash Flow Characteristics

Sustained operating cash inflows indicate the ability to fund day-to-day operations without excessive reliance on external capital.

Key ratios disclosed in the RHP provide insight into operational efficiency and financial health.

Select Financial Ratios

The ratios suggest balanced growth without aggressive leverage, which is important in a regulated healthcare business.

Management attributes performance improvement to:

• Higher patient footfall

• Better utilisation of medical infrastructure

• Standardised treatment protocols

• Brand-led patient acquisition

Strategic Focus Areas

• Expansion through asset-light models

• Strengthening clinical outcomes

• Regulatory compliance under ART Act

• Building patient trust and ethical positioning

The company does not follow a discount-driven growth strategy, prioritising quality and compliance over volume.

The Fresh Issue proceeds will be used to support growth and balance sheet strength.

Objects of the Offer

No proceeds will be used for promoter repayment or related party transfers, which reduces governance risk.

The issue price will be determined through the book-building process, based on:

• Earnings profile

• Net worth

• Growth prospects

• Comparable healthcare and IVF peers

The valuation approach aligns with SEBI ICDR norms and market-based demand discovery rather than fixed pricing.

Gaudium IVF’s equity share capital consists of equity shares with a face value of ₹5 each. The IPO comprises a Fresh Issue and an Offer for Sale (OFS), resulting in dilution of promoter holding post-issue.

Share Capital Structure

The capital structure post-IPO is designed to improve liquidity while retaining promoter control.

Following the completion of the Offer, shareholding will be distributed among promoters and public shareholders.

Indicative Post-Issue Shareholding

The company meets minimum public shareholding norms prescribed under SEBI regulations.

Gaudium IVF has adopted a conservative dividend policy, focusing on reinvesting profits to support expansion and strengthen operations.

Dividend Policy Highlights

• No guaranteed dividend payout

• Dividends subject to profitability, cash flows, and capex needs

• Board discretion based on long-term strategy

Historically, profits have been retained to fund clinic growth and infrastructure investments.

Investors should consider the following tax implications under Indian tax laws:

Key Tax Points

Tax treatment is subject to changes in law and individual investor circumstances.

Gaudium IVF has disclosed detailed related party transactions in compliance with Ind AS-24.

Nature of Related Party Transactions

All transactions are:

• Approved by the Audit Committee

• Conducted on commercial terms

• Properly disclosed in financial statements

No IPO proceeds will be diverted to related parties.

The company has entered into several material contracts related to the IPO and business operations.

Material Agreements

These contracts are available for inspection as disclosed in the RHP.

The IPO is a 100% book-building issue, complying with SEBI ICDR Regulations.

Allocation Structure

Anchor investors may be allocated up to 60% of the QIB portion.

Equity shareholders will enjoy rights as per the Companies Act and Articles of Association.

Shareholder Rights

• Voting rights on resolutions

• Right to dividends (if declared)

• Participation in surplus on liquidation

• Free transferability of shares

Each equity share carries one vote.

The company has complied with all mandatory disclosures under:

• Companies Act, 2013

• SEBI ICDR Regulations

• SEBI LODR Regulations

Additional Disclosures Include:

• No wilful default classification

• No prohibition from SEBI

• Compliance with minimum public shareholding

• Full disclosure of material contracts