Aragen Life Sciences has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking to raise ₹800 crore through an initial public offering (IPO). The contract research, development and manufacturing organisation (CRDMO) has structured the offering to include both fresh issue and offer for sale components. According to the latest reports from The Economic Times, the IPO will feature a fresh issue component alongside an offer for sale (OFS) of up to 2.73 crore equity shares by selling shareholders, including both promoters and investor shareholders such as Goldman Sachs Capital Holdings. The company will not receive any proceeds from the offer for sale, with the proceeds being given to respective promoters and investors divesting their stakes. Additionally, the company is also likely to consider a pre-IPO placement of equity shares worth ₹160 crore before filing the red herring prospectus with the Registrar of Companies (RoC). The fresh issue size will be reduced if the proposed pre-IPO placement is completed.
The proceeds from the fresh issue will be strategically allocated across multiple growth initiatives and operational improvements. As detailed in the DRHP filed on Wednesday, the funds will primarily support repayment and/or pre-payment of borrowings, capital expenditure for purchasing new equipment and machinery at the company's facilities in Hyderabad, and capital expenditure at its material subsidiary Aragen Biologics Pvt Ltd's facility in Bengaluru. According to Moneycontrol, Goldman Sachs-backed Aragen Life Sciences proposes to utilise ₹385 crore of the net proceeds from the fresh issue to repay part of its debt, against consolidated outstanding borrowings of ₹424.7 crore as of May 2026. This significant debt reduction will substantially improve the company's financial position. The remaining proceeds will be utilized for general corporate purposes, ensuring the company has adequate financial flexibility for ongoing operations and future growth opportunities.
Aragen Life Sciences has demonstrated exceptional financial performance with revenue reaching ₹21,784 crore and profit of ₹257.6 crore in FY26, according to Moneycontrol. The company reported a profit of ₹257.6 crore for the year ended March 2026, up 42.8 percent from ₹180.4 crore in the previous year. Revenue for the same period increased 18 percent to ₹21,784 crore from ₹18,451 crore. The company recorded the second-highest revenue from operations growth between Fiscal 2025 and Fiscal 2026 among the assessed Indian peers, with revenue from operations, profit for the year, Adjusted EBITDA, and adjusted profit for the year increasing at a CAGR of 14.64%, 26.86%, 15.63%, and 29.91% respectively from Fiscal 2024. The company maintained strong capital efficiency with ROCE and ROE at 18.18% and 11.96% respectively while achieving this growth trajectory.
Aragen Life Sciences, incorporated in 2000, operates as an integrated CRDMO serving global innovator companies and emerging firms across the life sciences industry. The company's comprehensive service portfolio spans contract research and preclinical services (CRO) as well as contract development and manufacturing services (CDMO) for small molecules and biologics. According to Moneycontrol, the company has research and development infrastructure across Hyderabad, Bengaluru and Pune, providing comprehensive capabilities across the drug development lifecycle. The company served 591 global customers in fiscal 2026 across key markets including the US, Europe, Japan, India and other Asia-Pacific markets. Its diverse customer base encompasses big pharma companies, large and mid-sized pharmaceutical firms, biotechnology companies, and players in animal health, agrochemicals and specialty chemicals. The company serves customers across North America, Europe, India and other global markets, with North America and Europe contributing 55 percent and 30 percent, respectively, to its revenue in fiscal 2026. India accounted for 5 percent of revenue, while the remaining revenue came from other markets.
The IPO is being managed by a consortium of prominent investment banks, with Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities Pvt Ltd, and JM Financial serving as book-running lead managers to the issue. As reported by The Economic Times, KFin Technologies is the registrar for the issue. 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. Goldman Sachs held a 28.54 percent stake in the company before the offer, making it a significant investor in the IPO. The company's workforce stood at 4,362 employees as of March 31, 2026, reflecting its substantial operational scale in supporting global life sciences research and development initiatives. The company's equity shares are proposed to be listed on the BSE and NSE.
