Aragen Life Sciences files DRHP with Sebi for IPO comprising ₹800 crore fresh issue

Aragen Life Sciences, a contract research, development and manufacturing organisation (CRDMO), has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares worth ₹800 crore and an offer for sale (OFS) of up to 27,329,192 equity shares with a face value of ₹10 each by existing shareholders.

The company plans to use the proceeds from the fresh issue to repay and/or pre-pay borrowings. The funds will also be used for capital expenditure, including the purchase of new equipment and machinery for its facilities in Hyderabad. A portion of the proceeds will be allocated towards capital expenditure by its material subsidiary, Aragen Biologics Private Limited, for its Bengaluru facility, including the purchase of equipment and machinery. The remaining proceeds will be used for general corporate purposes.

Business profile

Incorporated in 2000, Aragen Life Sciences is an integrated CRDMO serving global innovator companies and emerging firms in the life sciences industry. It provides solutions across the drug development lifecycle, including contract discovery and pre-clinical research services, as well as contract development and manufacturing services for small molecules and biologics.

With more than 25 years of operations, Aragen has emerged as the largest CRDMO among the assessed Indian peers in terms of the number of solutions offered across the drug development value chain as of March 31, 2026, according to the F&S Report. It is also among the top three Indian CRDMOs by operating revenue among the assessed peers, operating in a global CRDMO market estimated at $171 billion in fiscal 2026.

The company focuses on life sciences companies developing new chemical entities (NCEs) and new biological entities (NBEs). In fiscal 2026, it served 591 customers globally across key markets, including the US, Europe, Japan, India and other Asia-Pacific markets.

Its customer base includes Big Pharma companies, large and mid-sized pharmaceutical companies and biotechnology firms across pharmaceuticals, biotechnology, animal health, agrochemicals and specialty chemicals. As of March 31, 2026, Aragen had worked with 16 of the top 20 Big Pharma companies.

Expanding CRO and biologics capabilities

Aragen started its contract research organisation (CRO) business in 2002 and has since built the second-largest CRO solutions platform in India in terms of scientific personnel among the assessed Indian peers as of March 31, 2026.

The company is also one of two Indian CRDMOs among the assessed peers offering integrated small-molecule drug substance and drug product development services.

Aragen entered the biologics segment through an acquisition in 2014 and has since expanded its capabilities to offer integrated gene-to-GMP solutions across the biologics CRDMO value chain. Its biologics platform operates through a US-India delivery model, combining cell-line development and early-stage research in the US with development and manufacturing capabilities in India.

As of March 31, 2026, the company had 4,362 employees, including 3,412 scientific personnel, of whom 479 held PhD degrees. According to the F&S Report, Aragen had the highest PhD-to-scientific personnel ratio in the Indian CRDMO industry at 14.04%.

Revenue, profit growth

Aragen Life Sciences also recorded the second-highest growth in revenue from operations 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 grew at compound annual growth rates (CAGRs) of 14.64%, 26.86%, 15.63% and 29.91%, respectively, between FY24 and FY26.

In fiscal 2026, revenue from operations stood at ₹21,783.92 million, while profit for the year was ₹2,576.44 million. Adjusted EBITDA stood at ₹5,937.65 million and adjusted profit for the year at ₹2,839.85 million. The company reported a return on capital employed (ROCE) of 18.18% and return on equity (ROE) of 11.96% during the period.

ESG focus

The company said it has maintained a focus on environmental, social and governance (ESG) initiatives and corporate governance practices, including sustainability commitments, responsible business conduct and board-led oversight.

Aragen received a Gold EcoVadis Sustainability Rating in fiscal 2026, placing it among the top 5% of companies globally. It became a signatory to the Science Based Targets initiative in fiscal 2023 and an associate member of the Pharmaceutical Supply Chain Initiative in 2022.

Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the IPO.