Indian pharma, healthcare firms eye ₹13,000cr via IPOs
What's the story
India's pharmaceutical and healthcare sector is gearing up for a major fundraising drive via initial public offerings (IPOs). The industry plans to raise an estimated ₹12,000-13,000 crore over the next six to nine months. According to data compiled by The Economic Times, around 15 companies from this sector are likely to enter the primary market soon.
Market activity
SEBI receives DRHPs for several companies
The Securities and Exchange Board of India (SEBI) has received draft red herring prospectuses (DRHPs) for Indira IVF and Sahajanand Medical Technologies. Indira IVF refiled in July with an issue size of about ₹3,500 crore, while Sahajanand Medical Technologies filed for a ₹1,500 crore issue. Other notable filings include NephroPlus (about ₹2,000 crore), Molbio Diagnostics (₹200 crore), and Cotec Healthcare (₹500 crore).
Fundraising plans
Companies that have received SEBI's nod
Companies that have received SEBI's approval include Rubicon Research (looking to raise ₹1,085 crore) and Corona Remedies (₹800 crore). Other companies planning IPOs include Paramesu Biotech (₹600 crore), Allchem Lifesciences (₹190 crore), Paras Healthcare (about ₹900 crore), Veeda Clinical Research (about ₹500 crore), and Gujarat Kidney and Superspeciality Hospital (₹128 crore). Genetix Biotech is also planning to file for an IPO soon.
Trends
ART sector attracting investor interest due to strong fundamentals
Saurav Chaube, a research analyst at Samco Securities, noted a strategic shift in the assisted reproductive technology (ART) sector. He said this growing investor interest is driven by strong market fundamentals such as increasing infertility awareness and favorable demographics. Chaube added that companies like Indira IVF and Gaudium IVF have filed through the confidential route, indicating a maturing market where players want to optimize their public offerings while minimizing early scrutiny and opportunist litigation.
Industry outlook
Pharma, healthcare increasingly in focus since COVID-19
Samir Bahl, CEO of Anand Rathi Advisors, said global markets have increasingly focused on pharma and healthcare since COVID-19. He noted that countries like the US and India are ramping up investments in pharma and biotech innovation. Bahl also said Indian pharma companies are commanding high price-to-earnings ratios, indicating favorable valuations and strong investor interest in the sector.