Aragen Life Sciences files DRHP with SEBI for ₹800 crore IPO

Aragen Life Sciences has filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO).

The IPO comprises a fresh issue of ₹800 crore and an offer for sale (OFS) aggregating up to 27,329,192 equity shares of face value of ₹10 each by selling shareholders.

The proceeds from the fresh issue are proposed to be utilised towards the repayment and/or pre-payment of borrowings; capital expenditure to be incurred by the company for purchase of new equipment and machinery for the company’s facilities in Hyderabad; capital expenditure to be incurred by one of the company’s material subsidiaries, Aragen Biologics Private Limited, for the facility in Bengaluru, towards purchase of new equipment and machinery; and general corporate purpose, supporting the company’s next phase of expansion.

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

With more than 25 years of operations, Aragen Life Sciences has become the largest CRDMO among the assessed Indian peers in terms of number of solutions offered across the drug development value chain as of March 31, 2026. The company has also become one of the top three largest Indian CRDMOs in terms of operating revenue among the assessed Indian peers, operating in a global CRDMO market estimated at USD 171 billion in Fiscal 2026.

The company focuses on life sciences companies that are engaged in new chemical entities (NCEs) and new biological entities (NBEs) and has served as a strategic partner to 591 customers globally in Fiscal 2026, across key markets including the United States, Europe, Japan, India and other APAC markets. Company’s customer base comprises Big Pharma companies, large pharmaceutical companies, small biotechnology companies and mid-sized pharmaceutical companies operating across pharmaceuticals, biotechnology, animal health, agrochemicals and specialty chemicals. Aragen Life Sciences worked with 16 of the Top 20 Big Pharma customers as of March 31, 2026.

Aragen Life Sciences initiated its CRO business in 2002 and have since grown to operate the second largest CRO solutions platform in India in terms of number of scientific personnel among the assessed Indian peers as of March 31, 2026. The company is one of two Indian CRDMOs among the assessed peers to offer integrated small molecule drug substance and drug product development services, as of March 31, 2026. Aragen Life Sciences was the second CRDMO in India to offer biologics services through an acquisition in 2014 and have since expanded its capabilities to offer integrated “gene-to-GMP’ solutions across the biologics CRDMO value chain. Its biologics CRDMO platform is supported by an integrated US–India delivery model combining cell line development and early-stage research in the United States with cost-efficient development and manufacturing in India.

The Company’s workforce comprises 4,362 employees including 3,412 scientific personnel of whom 479 hold PhD degrees as of March 31, 2026. According to the F&S Report, the company had the highest PhD-to-scientific personnel ratio within the Indian CRDMO industry at 14.04% as of March 31, 2026, that demonstrates the strength of research workforce and depth of its scientific expertise.

The company maintained a structured focus on environmental, social and governance (ESG) initiatives and corporate governance practices including sustainability commitments, responsible business conduct and board-led oversight supported by a professional management team. Aragen Life Sciences obtained the Gold EcoVadis Sustainability Rating in Fiscal 2026, placing it among the top 5% of companies globally and has also become a signatory to the Science Based Target Initiative (SBTi) in Fiscal 2023 and became an associate member of Pharmaceutical Supply Chain Initiative (PSCI) in 2022.

The company also recorded the second highest revenue from operations growth between Fiscal 2025 and Fiscal 2026 among the assessed Indian peers, according to the F&S Report. Its revenue from operations, profit for the year, Adjusted EBITDA and adjusted profit for the year increased at a CAGR of 14.64 per cent, 26.86 per cent, 15.63 per cent and 29.91 per cent, respectively, from Fiscal 2024 to reach ₹21,783.92 million, ₹2,576.44 million, ₹5,937.65 million and ₹2,839.85 million, respectively, in Fiscal 2026. While achieving this growth, the company maintained its focus on capital efficiency with ROCE and ROE were 18.18 per cent and 11.96 per cent, respectively.

Axis Capital Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited and JM Financial Limited are the book running lead managers to the issue.

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