Indian pharmaceutical and healthcare companies are preparing for a significant fundraising period, with plans to raise an estimated ₹12,000-13,000 crore through initial public offerings (IPOs) in the next six to nine months. Approximately 15 companies in the sector are expected to enter the primary market, with a particular focus on fertility and women's health segments.
Several companies have already filed their draft red herring prospectuses (DRHPs) with the Securities and Exchange Board of India (SEBI). These include Indira IVF, which refiled in July for an issue size of around ₹3,500 crore, and Sahajanand Medical Technologies, which filed for ₹1,500 crore. Other notable filings include NephroPlus (around ₹2,000 crore), Molbio Diagnostics (₹200 crore), and Cotec Healthcare (₹500 crore). Sudeep Pharma, having submitted its draft papers in June, is planning to raise ₹95 crore, while Gaudium IVF and Women Health is expected to refile for about ₹500 crore.
Several companies have already received approval from SEBI for their IPOs. These include Rubicon Research, aiming to raise ₹1,085 crore, and Corona Remedies, seeking ₹800 crore. Other companies that have received the green light include Paramesu Biotech (₹600 crore), Allchem Lifesciences (₹190 crore), Paras Healthcare (around ₹900 crore), Veeda Clinical Research (around ₹500 crore), and Gujarat Kidney and Superspeciality Hospital (₹128 crore).
According to Vikas Bahl, Indian pharma companies are currently commanding high price-to-earnings ratios, which signals favorable valuations and strong investor interest in the pharma and healthcare sector. This positive market sentiment is likely contributing to the flurry of IPO activity.
The IPO market in general has seen considerable activity recently. Several companies across various sectors have launched their IPOs in 2023 and 2024, with varying degrees of success. Some notable examples from 2024 include Reddit, Viking Holdings, and Astera Labs.
The healthcare sector includes a wide range of companies, including health care providers like hospitals and clinics, medical device developers, diagnostics companies, and drug developers. These companies often face unique challenges when accessing capital markets, including issues related to due diligence, public relations, regulatory matters, and intellectual property.
The upcoming IPO wave in the Indian pharmaceutical and healthcare sector reflects the growth and potential of these industries. With favorable valuations and strong investor interest, these companies are well-positioned to raise capital and fund their future growth plans.
