According to reports from Moneycontrol, Aragen Life Sciences is preparing to file draft papers for an initial public offering that could raise up to ₹3,500 crore. The proposed IPO is expected to comprise a fresh issue of shares as well as an offer for sale by existing shareholders. The company plans to use the fresh capital primarily to repay borrowings and fund capital expenditure for growth projects as it expands its research and manufacturing capabilities.
As reported by Moneycontrol, Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities and JM Financial have been appointed as the book-running lead managers for the issue. The final size and structure of the offering could change before the draft red herring prospectus is filed. Founded in 2000 and headquartered in Hyderabad, Aragen operates as a contract research, development and manufacturing organisation, providing services across drug discovery, development and commercial manufacturing.
According to Aragen's disclosures, the company serves more than 400 customers across the pharmaceutical, biotechnology, agrochemical and animal-health industries. It operates facilities across Hyderabad, Bengaluru, Pune and Visakhapatnam in India, besides a biologics research campus in Morgan Hill, California. Its capabilities span medicinal chemistry, biology, process research, formulation development, analytical services, custom synthesis and the manufacture of active pharmaceutical ingredients and intermediates.
As reported by Moneycontrol, Aragen is backed by Goldman Sachs and healthcare-focused private-equity firm Quadria Capital. In January 2025, Quadria invested $100 million for a minority stake at an approximate valuation of $1.4 billion, largely through a fresh capital infusion. Separately, Avendus Future Leaders Fund, along with SBI Life Insurance, invested ₹300 crore in Aragen in August 2025.
The IPO plan comes amid growing global demand for outsourcing drug research and manufacturing and efforts by pharmaceutical companies to diversify supply chains. According to a Boston Consulting Group-IPSO report, India's CRDMO market could expand from $3-3.5 billion currently to $22-25 billion by 2035, supported by cost advantages, small-molecule expertise and emerging biologics capabilities.
