A movie may have tripped Indira IVF's Rs 3,500 cr IPO plan

Mumbai: In-vitro fertilisation (IVF) isn't the sort of thing that typically seeds the fecund imagination of Bollywood-albeit not so fertile lately, with hits having become sparse. Still, director Vikram Bhatt was brave enough to tackle the sensitive subject in Tumko Meri Kasam, starring Anupam Kher and Esha Deol, which was released last week. Critics didn't like it too much though and, apparently, neither has the Securities and Exchange Board of India (Sebi).

Regulatory objections about the film's alleged role in promoting the company and the timing of its release have forced the unexpected deferral of the ₹3,500-crore public offering of EQT-backed Indira IVF Hospital, said people with knowledge of the matter.

Papers likely to be Refiled

The film is a Bollywood-style biopic on Ajay Murdia, who founded Indira IVF in Udaipur and built it up into a chain of fertility clinics. Murdia's sons are credited as the film's producers. Bhatt is also the writer of the film.

Following Sebi's objections, Indira IVF was forced to withdraw its draft red herring prospectus (DRHP), putting a halt to what was set to be one of the biggest healthcare IPOs of the year, said the people cited above.

Sebi and Indira IVF did not respond to ET's emailed queries.

However, those close to the company said the initial public offering has been temporarily withdrawn considering market conditions and that papers will be refiled once the primary market revives.

Indira IVF filed draft papers with Sebi last month via the confidential pre-filing route.

The regulator is said to have raised concerns over potential violations of disclosure norms and fair market practices, fearing the film's release could act as indirect promotional material influencing investor sentiment ahead of the IPO, said people aware of the development.

Last year, EQT acquired a controlling stake in Indira IVF from TA Associates and the company's founders, Ajay Murdia and his sons Kshitiz and Nitiz.

Indira IVF was looking to tap the public markets amid growing demand for fertility treatments in India. The company, founded in 2011, has emerged as a leader in the space, operating over 150 centres with 330 specialists across India.

With the IPO now shelved, Indira IVF will have to reassess its fundraising strategy, either by refiling with Sebi at a later stage or exploring alternative funding options.

Made on a budget of ₹12 crore, the film has collected ₹54 lakh in five days, according to trade analysts. The nearly three-hour film is styled as an entertainer, with special effects and a court battle thrown into the mix to heighten the dramatic tension. The Tumko Meri Kasam soundtrack features seven songs with titles like Ishqaa Ishqaa, Zara Paas Aana and Tere Dum Se.

Director Bhatt would have set things in motion with the words lights, camera, action. Sebi seems to have said cut.