Aragen Life Sciences, a leading contract research, development and manufacturing organisation (CRDMO), 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 IPO comprises a fresh issue of Rs 800 crore and an offer for sale (OFS) of up to 27,329,192 equity shares with a face value of Rs 10 each by existing selling shareholders. Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the proposed IPO.
IPO Proceeds To Fund Expansion, Debt Repayment
The proceeds from the fresh issue will primarily be used to strengthen Aragen Life Sciences' balance sheet and fund its next phase of expansion. The company plans to use part of the proceeds for the repayment and/or pre-payment of borrowings. Funds will also be allocated towards capital expenditure for purchasing new equipment and machinery at its facilities in Hyderabad.
In addition, Aragen Biologics Private Limited, a material subsidiary of the company, will use proceeds towards capital expenditure for purchasing new equipment and machinery at its Bengaluru facility. The remaining funds will be used for general corporate purposes.
Incorporated in 2000, Aragen Life Sciences is a fully integrated CRDMO serving global innovator companies and emerging firms across the life sciences industry. The company provides solutions spanning the drug development lifecycle, including contract discovery and pre-clinical research services through its CRO business, as well as contract development and manufacturing services for small molecules and biologics.
In fiscal 2026, the company served 591 customers globally across key markets including the US, Europe, Japan, India and other Asia-Pacific markets. Its customer base includes Big Pharma companies, large pharmaceutical companies, small biotechnology firms and mid-sized pharmaceutical companies operating across pharmaceuticals, biotechnology, animal health, agrochemicals and specialty chemicals.
Aragen started its CRO business in 2002 and is one of the only two assessed Indian CRDMOs offering integrated small molecule drug substance and drug product development services. Aragen entered the biologics services segment through an acquisition in 2014 and has since expanded its capabilities to offer integrated gene-to-GMP solutions across the biologics CRDMO value chain.
Its biologics platform operates through a US-India delivery model, combining cell line development and early-stage research in the US with development and manufacturing capabilities in India.
Financial Performance
Revenue from operations, profit for the year, adjusted Ebitda and adjusted profit for the year grew at compound annual growth rates of 14.64%, 26.86%, 15.63% and 29.91%, respectively, between fiscal 2024 and fiscal 2026. Revenue from operations reached Rs 21,783.92 million in fiscal 2026, while profit for the year stood at Rs 2,576.44 million. Adjusted Ebitda was Rs 5,937.65 million and adjusted profit for the year was Rs 2,839.85 million.
The company reported a return on capital employed (ROCE) of 18.18% and return on equity (ROE) of 11.96% in fiscal 2026.
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