Indira IVF, one of India¡¯s biggest fertility clinic chains, was all set for a ?3,500 crore IPO. Investors were eager, the market was buzzing, and everything seemed on track. But suddenly, the company withdrew its IPO documents. As per the reports, the reason is: a Bollywood film linked to the clinic¡¯s founder raised red flags for SEBI, India¡¯s market regulator.
The film in question, Tumko Meri Kasam, directed by Vikram Bhatt, is based on Dr. Ajay Murdia, the founder of Indira IVF. Anupam Kher plays Murdia in the movie, alongside Adah Sharma, Ishwak Singh, and Esha Deol. SEBI found the timing of its release suspicious¡ªjust before the IPO¡ªraising concerns that it might be an indirect way to boost the company¡¯s image and influence investor sentiment.
Market experts state that the film could have acted as a promotional tool, subtly shaping public perception to attract more investors. SEBI has taken action against misleading advertisements before, but this is the first time an IPO has been affected by a movie. ¡°Companies are now using media, social platforms, and even films for perception management,¡± added financial analysts.
The IPO was expected to be a financial boost for Indira IVF, especially after its net profit fell from ?266 crore in FY23 to ?183 crore in FY24. With the IPO no longer an option, the company now faces an uncertain financial future.
In July 2023, private equity firm BPEA EQT acquired a controlling stake in Indira IVF from TA Associates, and the IPO was seen as a step toward further expansion. Now, the company must explore alternative funding strategies.
SEBI¡¯s move is being seen as a good decision. While companies have been penalized for misleading ads or stock promotions before, this is the first time an IPO has been blocked due to a film. This case shows that in the complex world of IPOs, even a movie can derail a company¡¯s plans if regulators suspect foul play.