Pure-play fertility IPO opens Thursday with plan to triple centers to 26
Gaudium IVF and Women Health is set to become India’s first listed pure-play fertility treatment provider when its Rs 165 crore initial public offering opens for subscription on February 20. Brokerages Arihant Capital Markets and SMIFS recommend subscribing, noting structural tailwinds in a market projected to triple by 2034. But at 30 times FY25 earnings, investors are paying a steep premium.
Founded by Dr. Manika Khanna in 2015, Gaudium operates through a hub-and-spoke model with 7 full-service IVF hubs and 28 spoke centers across Delhi, Mumbai, Ludhiana, Srinagar, Patna and Bengaluru. The company performed 3,476 IVF cycles in FY25 compared to 3,711 in FY24 and 3,512 in FY23—essentially flat volumes over three years despite the market’s supposed structural growth.
Both Arihant Capital Markets and SMIFS emphasize the industry’s compelling long-term trajectory. “The Indian IVF market is projected to expand from USD 1.32 billion in 2024 to USD 4.54 billion by 2034, implying a 13.13% CAGR, with India’s global share expected to rise from approximately 4.8% to approximately 8.3%,” Arihant Capital Markets stated in its IPO note.
The structural drivers are well-documented. “Structural drivers include declining fertility rates (below 1.8 across 16 states/UTs), delayed marriages, rising maternal age and increasing lifestyle-related infertility,” the brokerage noted, adding that “favorable demographics (population approximately 1.44 billion; median age approximately 29 years; urban population approximately 535 million) expand the addressable patient pool.”
India’s cost advantage versus developed markets creates potential for medical tourism. Treatment costs run USD 3,000-4,000 per IVF cycle in India compared to USD 15,000-20,000 in the US. Gaudium already serves international patients from the US, UK, Canada, Africa and the Middle East, though the proportion of international versus domestic revenue isn’t disclosed in brokerage reports.
From 7 to 26 Centers
The company plans aggressive capacity addition. The firm has plans to invest Rs 50 crore to establish 19 new IVF centers over FY27–FY29
“IVF hub count to increase from 7 to 26 centers (approximately 3.7x capacity expansion),” according to Arihant. The expansion targets Tier-II and Tier-III markets where “future expansion locations selected based on demography, fertility rates (1.1–1.9), competitive intensity and infrastructure gaps.”
SMIFS echoed this assessment, noting “expansion aligned with industry growth trends, underserved market penetration and scalable operating architecture.” The hub-and-spoke model is highlighted as capital-efficient. “Hub-and-spoke model centralizes complex procedures while spokes drive consultations and patient funnel creation,” Arihant Capital Markets explained.
The operating model includes “established standardized SOPs, clinical governance frameworks and a non-doctor-centric model to ensure consistent outcomes,” reducing dependence on individual practitioners—a key differentiator versus standalone clinics.
Financial Performance
Gaudium demonstrated strong topline growth over the past three years. “Revenue increasing from Rs 44.2 crore in FY23 to Rs 70.7 crore in FY25, implying a approximately 26% CAGR over the period,” Arihant Capital Markets stated.
Profitability improved even faster, with “the business model exhibits high operating leverage, supported by centralized embryology infrastructure, improving center productivity and standardized SOP-driven execution,” according to the brokerage. Net profit margins reached approximately 27% in FY25, “characteristic of scalable IVF platforms with strong asset turns once centers mature.”
Gaudium performed 3,476 cycles in FY25 versus 3,711 in FY24—a decline despite adding spoke centers. The 8,145 OPDs in FY25 suggest patient funnel creation is happening, but conversion to full IVF cycles hasn’t accelerated proportionally.
The IPO Structure
The issue comprises Rs 90 crore in fresh equity and Rs 75 crore in offer-for-sale by promoters, priced at Rs 75-79 per share. At the upper band, Gaudium seeks a market capitalization of approximately Rs 575 crore. The retail lot size is 189 shares, requiring Rs 14,931 at the upper price. The issue closes February 24 with listing expected shortly after on BSE and NSE.
Fresh proceeds will deploy Rs 50 crore toward establishing new IVF centers, Rs 20 crore for debt repayment, and the balance for inorganic growth and general corporate purposes. The Rs 75 crore offer-for-sale means promoters are cashing out roughly 13% of the post-issue equity at what appears to be peak valuation.
Arihant Capital Markets and SMIFS both issued subscribe recommendations, though their reasoning emphasizes industry tailwinds over company-specific execution. “We recommend subscribe to the issue as overall the outlook remains supported by structural industry growth, disciplined capacity addition, scalable operating architecture and demonstrated execution capability across geographies,” Arihant Capital Markets concluded.
SMIFS took an identical stance, noting “the financial profile reflects healthy EBITDA margins and robust return ratios” while acknowledging that success depends on the expansion plan proceeding as scheduled. “As new centers stabilize over a 2–3 year ramp cycle, aggregate revenue is expected to scale meaningfully, with fixed-cost absorption improving at the network level,” the brokerage stated.
The 2-3 year stabilization period is critical for valuation. At Rs 575 crore market cap on Rs 70.7 crore FY25 revenue, Gaudium trades at approximately 8x sales and 30x earnings.
IPO SNAPSHOT
Issue Opens: February 20, 2026
Issue Closes: February 24, 2026
Price Band: Rs 75-79 per share
Issue Size: Rs 165 crore (Rs 90 crore fresh + Rs 75 crore OFS)
Lot Size: 189 shares (Rs 14,931 at upper band)
Market Cap (at upper band): ~Rs 575 crore
Listing: BSE, NSE
Use of Proceeds:
- Rs 50 crore: New IVF centers
- Rs 20 crore: Debt repayment
- Balance: Inorganic growth, general corporate purposes
