Aragen Life Sciences filed DRHP with SEBI to launch its IPO; check all key details

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 IPO comprises a fresh issue of Rs 800 crore and an offer for sale of up to 27,329,192 equity shares with a face value of Rs 10 each by selling shareholders.

The company said the proceeds from the fresh issue will be used for repayment and or pre-payment of borrowings, capital expenditure for the purchase of new equipment and machinery at its Hyderabad facilities, capital expenditure by its material subsidiary Aragen Biologics for the purchase of new equipment and machinery at its Bengaluru facility, and general corporate purposes to support its next phase of expansion.

Incorporated in 2000, Aragen Life Sciences is a fully integrated contract research, development and manufacturing organisation serving global innovator companies and emerging firms in the life sciences industry. The company offers solutions across the drug development lifecycle, spanning contract discovery and pre-clinical research solutions, or CRO, and contract development and manufacturing solutions, or CDMO, for small molecules as well as biologics.

With more than 25 years of operations, the company said it has become the largest CRDMO among assessed Indian peers in terms of the number of solutions offered across the drug development value chain as of March 31, 2026. It also said it is among the top three largest Indian CRDMOs in terms of operating revenue among assessed Indian peers, in a global CRDMO market estimated at $171 billion in fiscal 2026.

Aragen Life Sciences said it focuses on life sciences companies engaged in new chemical entities and new biological entities, and served as a strategic partner to 591 customers globally in fiscal 2026. Its customers are spread across the United States, Europe, Japan, India and other APAC markets.

Its customer base includes Big Pharma companies, large pharmaceutical companies, small biotechnology companies and mid-sized pharmaceutical companies across pharmaceuticals, biotechnology, animal health, agrochemicals and specialty chemicals. The company said it worked with 16 of the top 20 Big Pharma customers as of March 31, 2026.

The company also said it has maintained a structured focus on environmental, social and governance initiatives and corporate governance practices, including sustainability commitments, responsible business conduct and board-led oversight supported by a professional management team.

It received the Gold EcoVadis Sustainability Rating in fiscal 2026, placing it among the top 5 per cent of companies globally. It became a signatory to the Science Based Target Initiative in fiscal 2023 and an associate member of the Pharmaceutical Supply Chain Initiative in 2022.

According to the draft papers, revenue from operations, profit for the year, adjusted EBITDA and adjusted profit for the year grew at a CAGR of 14.64 per cent, 26.86 per cent, 15.63 per cent and 29.91 per cent, respectively, to Rs 2,178.39 crore, Rs 257.64 crore, Rs 593.77 crore and Rs 283.99 crore, respectively, in FY26.

It said it maintained a focus on capital efficiency, with ROCE at 18.18 per cent and ROE at 11.96 per cent. Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities and JM Financial are the book running lead managers to the issue.