IPO rush in India’s pharma sector: Sector eyes Rs 12,000 crore fundraising; 15 companies ready to enter market

India’s pharmaceutical and healthcare industry is preparing for a significant wave of fundraising, with companies expected to raise Rs 12,000-13,000 crore through initial public offerings (IPOs) in the next six to nine months.According to ET, around 15 firms are likely to enter the primary market shortly. The Securities and Exchange Board of India (Sebi) has draft red herring prospectuses (DRHPs) for several players, including Indira IVF, which refiled in July aiming for roughly Rs 3,500 crore, and Sahajanand Medical Technologies, planning a Rs 1,500-crore issue.Other filings include NephroPlus (approximately Rs 2,000 crore), Molbio Diagnostics (Rs 200 crore), and Cotec Healthcare (Rs 500 crore). Sudeep Pharma submitted draft papers in June for Rs 95 crore, while Gaudium IVF and Women Health is expected to refile for around Rs 500 crore.Some companies have already received Sebi approval, such as Rubicon Research (Rs 1,085 crore) and Corona Remedies (Rs 800 crore). Other approved firms include Paramesu Biotech (Rs 600 crore), Allchem Lifesciences (Rs 190 crore), Paras Healthcare (around Rs 900 crore), Veeda Clinical Research (around Rs 500 crore), and Gujarat Kidney and Superspeciality Hospital (Rs 128 crore). Genetix Biotech is also planning an IPO soon.“We are seeing a strategic shift, particularly within the assisted reproductive technology (ART) sector,” said Saurav Chaube, research analyst at Samco Securities. “The growing investor interest is driven by compelling market fundamentals, including rising infertility awareness, favourable demographics and a projected CAGR of around 15% over the next decade.”Companies such as Indira IVF and Gaudium IVF have chosen the confidential filing route, reflecting a market that has matured enough to allow IPOs with minimal early scrutiny and reduced litigation risk, Chaube added, as quoted by ET.Beyond ART, broader macroeconomic trends are also encouraging IPO activity in the sector.“Global markets have increasingly focused on pharma and healthcare since Covid-19, with countries such as the US and India boosting investments in pharma and biotech innovation,” said Samir Bahl, CEO of Anand Rathi Advisors. “As supply chains move away from China, Indian pharma firms are well placed to leverage cost advantages, tap export opportunities, and raise funds for R&D in biosimilars, specialty drugs, and other areas.“Bahl added that high price-to-earnings ratios among Indian pharma companies indicate strong investor demand and favourable valuations, reinforcing the sector’s attractiveness for public listings.