Aragen Life Sciences Files DRHP With SEBI For ₹800 Crore IPO

Aragen Life Sciences has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed offering includes a fresh issue of ₹800 crore.

The IPO will also include an offer for sale (OFS) of up to 27,329,192 equity shares. Each share will have a face value of ₹10.

Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities and JM Financial have been appointed as the book-running lead managers for the issue.

IPO Proceeds To Support Expansion

Aragen plans to use the fresh issue proceeds to strengthen its balance sheet and support its next phase of expansion. A portion of the funds will be used to repay or prepay existing borrowings.

The company also plans to invest in new equipment and machinery at its facilities in Hyderabad. Its material subsidiary, Aragen Biologics Private Limited, will similarly use part of the proceeds for capital expenditure at its Bengaluru facility.

The remaining funds from the IPO proceeds will be used for general corporate purposes.

Aragen's Business And Financial Performance

Founded in 2000, Aragen Life Sciences is an integrated contract research, development and manufacturing organisation (CRDMO). It serves global pharmaceutical and life sciences companies.

The company operates across the drug development lifecycle. Its services include contract research and pre-clinical research through its contract research organisation (CRO) business. It also provides development and manufacturing services for small molecules and biologics.

Aragen served 591 customers globally in fiscal 2026. Its markets include the US, Europe, Japan, India and other parts of the Asia-Pacific region.

Its customers range from large pharmaceutical and biotechnology companies to mid-sized pharmaceutical firms. The company also serves clients in animal health, agrochemicals and speciality chemicals.

Aragen entered the CRO business in 2002. It is one of the two Indian CRDMOs assessed as offering integrated small-molecule drug substance and drug product development services.

The company entered the biologics services segment through an acquisition in 2014. It has since expanded its capabilities to provide gene-to-GMP solutions across the biologics CRDMO value chain.

Its biologics operations follow a US-India delivery model. Research and cell-line development are carried out in the US, and the development and manufacturing capabilities are based in India.

Aragen's financial performance has also improved in recent years. Between fiscal 2024 and fiscal 2026, revenue from operations grew at a compound annual growth rate (CAGR) of 14.64%.

Profit for the year grew at a CAGR of 26.86% during the same period. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and adjusted profit for the year grew at 15.63% and 29.91%, respectively.

Revenue from operations stood at ₹21,783.92 million in fiscal 2026. Profit for the year was ₹2,576.44 million.

Adjusted EBITDA stood at ₹5,937.65 million. Adjusted profit for the year was ₹2,839.85 million.

The company reported a return on capital employed (ROCE) of 18.18% in fiscal 2026. Its return on equity (ROE) stood at 11.96%.

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