Aragen Life Sciences, a prominent player in the contract research, development, and manufacturing (CRDMO) sector, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).
The proposed IPO comprises a fresh issue of equity shares worth Rs 800 crore, alongside an Offer for Sale (OFS) of up to 27,329,192 equity shares by existing selling shareholders. Each equity share will have a face value of Rs 10.
IPO Details and Use of Funds
The proceeds from the fresh issue are earmarked for several strategic initiatives. A significant portion will be allocated to the repayment or pre-payment of existing borrowings. Furthermore, the company plans substantial capital expenditure, including the purchase of new equipment and machinery for its facilities in Hyderabad and for its material subsidiary, Aragen Biologics, at its Bengaluru facility. The remaining funds will be utilized for general corporate purposes, supporting Aragen Life Sciences' ambitious next phase of expansion.
Aragen's Global Footprint and Services
Established in 2000, Aragen Life Sciences operates as a fully integrated CRDMO, catering to global innovator companies and emerging firms within the life sciences industry. The company offers a comprehensive suite of solutions across the entire drug development lifecycle. This includes contract discovery and pre-clinical research (CRO) solutions, as well as contract development and manufacturing (CDMO) solutions for both small molecules and biologics.
With over 25 years of operational experience, Aragen has grown to become the largest CRDMO among assessed Indian peers in terms of the breadth of solutions offered across the drug development value chain as of March 31, 2026. It also ranks among the top three largest Indian CRDMOs by operating revenue within a global CRDMO market estimated at $171 billion in fiscal year 2026. The company served 591 customers globally in fiscal 2026, with a strong presence across the United States, Europe, Japan, India, and other APAC markets. Its diverse client base spans Big Pharma, large pharmaceutical companies, small biotechnology firms, and mid-sized pharmaceutical companies across various sectors including pharmaceuticals, biotechnology, animal health, agrochemicals, and specialty chemicals. Notably, Aragen collaborated with 16 of the top 20 Big Pharma customers as of March 31, 2026.
Strong Financial Performance
According to its draft papers, Aragen Life Sciences demonstrated robust financial growth in fiscal year 2026. Revenue from operations surged to Rs 2,178.39 crore, reflecting a Compound Annual Growth Rate (CAGR) of 14.64%. Profit for the year reached Rs 257.64 crore (26.86% CAGR), adjusted EBITDA stood at Rs 593.77 crore (15.63% CAGR), and adjusted profit for the year was Rs 283.99 crore (29.91% CAGR). The company also maintained strong capital efficiency, with a Return on Capital Employed (ROCE) of 18.18% and a Return on Equity (ROE) of 11.96%.
Commitment to Sustainability
Aragen Life Sciences emphasizes its structured focus on environmental, social, and governance (ESG) initiatives. The company achieved a Gold EcoVadis Sustainability Rating in fiscal 2026, placing it among the top 5% of companies globally for its sustainability performance. It also became a signatory to the Science Based Target Initiative in fiscal 2023 and an associate member of the Pharmaceutical Supply Chain Initiative in 2022.
The book running lead managers for the IPO are Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, and JM Financial.