Mega IPO Alert: IVF Hospital Withdraws Rs 3,500 Crore Draft; Why Big Companies Are Walking Away From IPOs?

IPO Alert: Indira IVF Hospital has withdrawn the draft prospectus of Rs 3,500 crore worth of initial public offering (IPO). The draft was withdrawn on March 19, however, IVF did not specify any reasons. The company had filed its preliminary documents with market regulator Sebi on February 19.

As per the latest public issues statement by Sebi revealed that IVF's draft offer document was withdrawn on March 19, 2025.

Notably, a host of big companies have withdrawn their draft papers in recent years. Recently, PhysicsWallah pulled away from its IPO last week, while OYO decided to not proceed with its IPO as well after filing its draft in 2023. Also, Tata Group-backed Tata Play which was formerly known as Tata Sky had filed its draft in December 2022, but decided to withdraw its IPO later on.

It needs to be noted that these companies had opted for the confidential filing route for their IPO with Sebi.

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As per Angel One's earlier blog, confidential IPO filing allows a company to submit its draft red herring prospectus (DRHP) without making the details public immediately. Introduced by SEBI in December 2022, this mechanism was first used by Tata Play Ltd. Companies opting for this route can keep sensitive business information undisclosed until they officially decide to proceed with the IPO.

However, this process can take longer than the traditional IPO route and often involves higher legal and advisory costs, Angel One cited a note from ICICI Direct.

According to reports, IVF has likely withdrawn its IPO draft due to commercial reasons.

However, a report in Indian Express revealed that the fertility company came under Sebi's radar after allegations of a Bollywood movie, Tumko Meri Kasam that allegedly promoted IVF Hospitals. Sources revealed that Sebi raised concerns about the timing of the movie whose release date coincided with when IVF backed by private equity firm BPEA EQT was in the process of raising money via public offer.

Indira IVF is India's largest infertility speciality clinic chain with 1.60 Lakhs+ Successful IVF Pregnancies, 160+ centres across the country, supported by a passionate workforce of over 2,400+ people. Indira IVF was founded in the year 2011 in Udaipur, Rajasthan by Dr Ajay Murdia.

What is an IPO?

A corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company, as per NSE.

An IPO is an important step in the growth of a business. It provides a company access to funds through the public capital market. An IPO also greatly increases the credibility and publicity that a business receives. In many cases, an IPO is the only way to finance quick growth and expansion. In terms of the economy, when a large number of IPOs are issued, it is a sign of a healthy stock market and economy, NSE highlighted.

How IPOs Work? FAQs:

Question : What is an IPO?

Answer : An IPO, or Initial Public Offering, is the process by which a private company offers shares of its stock to the public for the first time, transitioning into a public company.,

Question : How do IPOs work?

Answer : The IPO process involves several steps including preparation, regulatory approval, marketing, pricing, and finally going public by listing shares on a stock exchange.,

Question : What are the types of IPOs?

Answer : There are two primary types of IPOs: Fixed Price Offering, where a set price is determined in advance, and Book Building Offering, where a price band is provided for investors to bid within.,

Question : What are the advantages of investing in IPOs?

Answer : Investing in IPOs offers benefits such as growth opportunities, liquidity from trading on a stock exchange, transparency through regular financial disclosures, and potential for high returns.,

Question : How can one invest in an IPO?

Answer : To invest in an IPO, one needs to open a Demat account, research the IPO, and apply for it through the ASBA route or via a stockbroker or online trading platform.