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The box office bomb that earned mere ₹65 lakh but destroyed a ₹3500 crore IPO: How a Bollywood film fell foul of SEBI
A film that earned just ₹65 lakh managed to cause its producers a loss of ₹3500 crore after its release fell foul of SEBI. Here's why.
Cinema as a marketing tool is not something new. Leni Riefenstahl infamously made propaganda films for Adolf Hitler's Nazi Party in the 30s, while closer home, everyone from MS Dhoni to Sachin Tendulkar has been accused of using biopics to leverage their market worth. Recently, a company on the verge of a massive IPO, tried to use a film based on the life of their founder, allegedly for the same purpose. The result was a double whammy. The film tanked and also took the mega IPO with itself. (Also read: Tumko Meri Kasam review: Even a brilliant Anupam Kher can't save this film in search of an identity)
The film that killed an IPO
Directed by Vikram Bhatt, Tumko Meri Kasam was released in theatres on March 21. Starring Anupam Kher, Adah Sharma, Esha Deol, and Ishwak Singh, the film is the story of Indira IVF founder, Dr Ajay Murdia. The film chronicles Dr Murdia's battles in mainstreaming IVF, including a lengthy court battle he fought. The film received mixed to negative reviews upon its release, despite praise for Anupam Kher's performance as the character based on Dr Murdia. At the box office, Tumko Meri Kasam was an even bigger disappointment, shutting shop just after the opening weekend, earning just ₹65 lakh.
While it was never clearly said, insiders believed that the movie was meant to be a marketing tool to boost Dr Murdia and the company's image, as they embarked on a massive ₹3500 crore initial public offering (IPO), taking the company public.
How SEBI stepped in
On March 27, Indira IVF withdrew its ambitious IPO after the Securities and Exchange Board of India (SEBI) alleged that Tumko Meri Kasam was promoting the company, the Economic Times reported. The market regulator observed that the timing of the movie's release was suspicious as the company was in the process of raising money for its IPO. The film was produced by Indira Entertainment, with Murdia's sons Nitiz and Kshitiz credited as producers.
Indira IVF denied the claims, with a company spokesperson telling Indian Express, “The company had decided to withdraw the pre-filed DRHP pursuant to evaluation of various factors and commercial considerations.” It is unclear if the company plans to reattempt the offer anytime soon.
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