Gaudium IVF IPO Day 3: Grey Market Premium Falls to 6.33%; Should Investors Subscribe?

Mumbai: Today marks the final day for bidding in the IPO of Delhi-based Gaudium IVF & Women Health, a company dedicated to fertility treatments for childless couples. The ₹165 crore IPO has already attracted over 300% subscription, but the grey market premium (GMP) has declined to 6.33%, prompting questions among investors about whether to subscribe.

IPO Price Band and Listing Details
The IPO offers equity shares with a face value of ₹5 at a price band of ₹75-79 per share, with one lot consisting of 189 shares. At the upper band of ₹79, the company’s pre-IPO market capitalization stands at ₹575 crore. If all goes as planned, the shares are expected to list on BSE and NSE on 27 February 2026.

Grey Market Trends
On Friday morning, the GMP stood at 0.76%, translating to a premium of ₹8.5 per share for a ₹79 issue price. By Tuesday, 24 February, it fell to 6.33%, or roughly ₹5 per share. Analysts remain cautiously optimistic. The IPO comprises a fresh issue of ₹90 crore and an offer-for-sale of ₹75 crore.

Use of Proceeds
Funds raised will primarily be used to open new IVF centers, with a portion allocated to repay existing debts or make pre-payments. The remainder will support the company’s general corporate purposes.

Business Overview
Gaudium IVF operates in the assisted reproductive technology (ART) sector, offering IVF, ICSI, and IUI fertility treatments. The company follows a hub-and-spoke model, with 7 hubs and 28 spoke centers across multiple states. It positions itself as a pan-India fertility services platform, aiming to consolidate the fragmented IVF market.

Financial Performance
For FY25, the company reported revenue of ₹70.72 crore, up from ₹47.89 crore in FY24 and ₹44.23 crore in FY23. Net profit rose to ₹19.13 crore from ₹10.32 crore in FY24. EBITDA margins stood at 40%, and return on equity (ROE) at 21.25%. Pre-IPO earnings per share were ₹3.12, with a pre-issue P/E ratio of 25.36.

Analyst Recommendations
Swastika Securities has advised investors to subscribe, noting that Gaudium IVF will be India’s first publicly listed company focused solely on fertility services. The brokerage praised the company’s strong margins, though it flagged a slightly high valuation at the upper price band and a ₹31 crore tax dispute as a potential risk. Kunvarji Wealth Solutions also recommended subscribing, highlighting the company’s multi-location expansion, improving financial profile, and strong position in the rapidly growing IVF market.