Aragen Life Sciences has taken another step towards going public as the contract research, development and manufacturing organization company has filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering.
The public issue comprises a fresh issue of Rs 800 crore and an offer for sale (OFS), with promoters and investors selling up to 27,329,192 equity shares of face value of Rs 10 each.
From the promoter group, Reddy Investment Trust and Davinder Singh Brar are set to take part in the OFS, while WSCPVIII (Singapore), WSCPVIII EMP (Singapore), Goldman Sachs Capital Holdings III, and WSCPVIII Parallel Intermediary (Singapore) are among the investors who will be divesting their stakes through the offer for sale, according to the DRHP.
The company said it will not receive any proceeds from the offer for sale, and the proceeds will be given to the respective promoters and investors divesting their stakes.
However, 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 purchasing new equipment and machinery for its facilities in Hyderabad; capital expenditure to be incurred by one of its material subsidiaries, Aragen Biologics, for the facility in Bengaluru, towards purchasing new equipment and machinery; and general corporate purposes, supporting the company's next phase of expansion.
KFin Technologies is the registrar for the issue, while the book-running lead managers include Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, and JM Financial.
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About Aragen Life Sciences
Incorporated in 2000, Aragen Life Sciences is a fully integrated contract research, development and manufacturing organization (CRDMO) serving global innovator companies and emerging firms in the life sciences industry. The company offers comprehensive 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.
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.
Financial Snapshot
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%, 26.86%, 15.63%, and 29.91%, respectively, from Fiscal 2024 to reach Rs 2,178.39 crore, Rs 257.64 crore, Rs 593.76 crore, and Rs 283.98 crore, respectively, in Fiscal 2026. While achieving this growth, the company said, it has maintained its focus on capital efficiency, with ROCE and ROE at 18.18% and 11.96%, respectively.
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