TA Associates picks up minority stake in Indira IVF
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US-based private equity firm TA Associates has acquired a significant minority stake in infertility treatment provider Indira IVF Hospital Pvt. Ltd, the firms said on Monday.

TA Associates will help Indira IVF grow in India and international markets, both organically and inorganically, Naresh Patwari, a director at TA Associates Advisory Pvt. Ltd, said in a statement. The PE firm will also help Indira IVF offer additional clinical services, he said.

“IVF (in-vitro fertilisation) is a large and fast-growing opportunity in India that we believe has the ability to make a lasting positive impact on the lives of millions of people,” said Patwari. 

The two firms didn't disclose financial details of the deal.

Patwari and TA Associates managing director Dhiraj Poddar will join the board of Indira IVF as the PE firm's nominees.

“The infertility treatment space, in particular IVF, represents a large and growing market,” said Poddar.

Indira IVF was founded in 2014 by Dr Ajay Murdia, Dr Kshitiz Murdia, Nitiz Murdia, Ashish Lodha and Manish Khatri. It offers infertility treatments at 59 centres across 16 states in India and has completed nearly 27,000 IVF cycles in the last 12 months. The company has 1,800 employees, including more than 150 IVF specialists and 100 embryologists.

The statement cited an Ernst & Young study to estimate that more than 25 million couples actively seeking children in 2015 were suffering from infertility-related issues. Industry estimates suggest that 150,000 to 250,000 IVF cycles are done annually in India, and Ernst & Young expects the industry to grow at nearly 20% annually, the statement said. 

For TA Associates, this is the first investment in the IVF segment. However, the PE firm has invested in other healthcare companies including Dr Lal PathLabs Ltd, where it has earned benchmark returns, as well as Shilpa Medicare Ltd and Ideal Cures Pvt. Ltd.

Its last India investment was in July 2018 when it backed mutual fund distributor Prudent Corporate Advisory Services Ltd

For the latest deal, Pioneer Legal (previously with DSK Legal) provided legal counsel and KPMG served as the financial adviser to TA Associates. Veritas Legal provided legal counsel to Indira IVF.

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