Private equity firm BPEA EQT has acquired 60% of Indira IVF Hospital Pvt. Ltd, India’s largest chain of fertility clinics, from TA Associates and the fertility company’s founders at a valuation of about $1.1 billion, according to two people familiar with the transaction.
On Friday, the companies confirmed the transaction without disclosing financial details. BPEA is expected to pay over $600 million for this deal, the people said, requesting anonymity. Indira IVF founders Ajay Murdia, Kshitiz Murdia and Nitiz Murdia will retain a significant minority stake and continue to lead the company. Private equity firm TA Associates, which first picked up a minority stake in 2019 for an undisclosed sum, will exit the company with the transaction.
“We see strong potential in further expanding India IVF’s presence across India and entering adjacent markets while continuing to invest in its R&D capabilities and technology, drawing on EQT’s in-house expertise within healthcare and digitalization,” Ashish Agrawal, partner, BPEA EQT said, adding that fertility services are a fast-growing space in India. Mint reported on 26 June that BPEA EQT was a shortlisted bidder for this stake.
Jimmy Mahtani, partner and co-head of BPEA EQT India, said: “This investment aligns with EQT’s commitment to investing in companies that address critical societal needs and have the potential to impact people’s lives for the better.”
“Partnership with BPEA EQT is the beginning of a new phase of sustainable growth for Indira IVF. Starting from a single clinic in Udaipur to becoming the largest provider of assisted reproductive technology (ART) services in India today, Indira IVF’s journey has been a remarkable success story. The ART sector in India is at an exciting stage of development, and we are lucky to have a great company, partners, and colleagues to lead the growth of this segment,” said Kshitiz Murdia, CEO of Indira IVF.
BPEA EQT was advised by JSA (legal), Lincoln International, Price Waterhouse & Co LLP (transaction and tax, operational DD), Deloitte (financial and tax DD, structuring, ESG), and Awelin (digital). The selling shareholders were advised by Goldman Sachs and JP Morgan.
With this transaction, BPEA Private Equity Fund VIII is expected to have around 35-40% of its funds invested, considering closed and signed investments, announced public offers, and less any expected syndication.
Founded in 1988 by Ajay Murdia, Indira IVF has grown from a single clinic to a nationwide network encompassing 116 centres across 20 states in India. The company offers assisted reproductive technology services in India and conducts about 40,000 IVF cycles each year. So far, it has helped more than 125,000 couples achieve pregnancy, according to the company.
Indira IVF reported a profit of ₹340 crore on a revenue of around ₹1,200 crore in the year ended 31 March.