Bharat Biotech Considers IPO to Raise Over $500 Million
Synopsis
Bharat Biotech, the creator of the Covid-19 vaccine Covaxin, is eyeing an IPO that could generate over $500 million. This move reflects the company's growth trajectory and its strategic plans for future expansion.
Key Takeaways
Bharat Biotech aims for an IPO to raise over $500 million.
Plans to invest Rs 200–250 crore in a new vaccine manufacturing facility.
Revenues grew significantly in FY25, reflecting strong product performance.
Government institutions are vital revenue sources but introduce volatility.
The Indian pharma sector shows robust growth in transactions and investor confidence.
New Delhi, March 1 (NationPress) Bharat Biotech, known for its development of the Covid-19 vaccine Covaxin, is contemplating an initial public offering aimed at raising over $500 million, as reported by various sources.
Discussions are currently focused on significant details regarding the planned share sale, including its size and timing.
For the fiscal year 2026, Bharat Biotech intends to allocate Rs 200–250 crore towards capital expenditure for an extensive vaccine manufacturing facility under Sapigen Biologix Pvt Ltd in Bhubaneswar, Odisha. This project will be partially funded through loans from financial institutions.
Founded in 1996 and led by Dr. Krishna Ella, this Hyderabad-based vaccine manufacturer has delivered over 9 billion vaccine doses globally and remains fully promoter-owned as of July 31, 2025.
In FY25, the company's leading products, including TCV, RV, JE, and OPV, significantly contributed to revenues, which climbed to Rs 1,462.9 crore from Rs 1,323.2 crore in FY24. Furthermore, operating profit margins improved, reaching 28.2 percent in FY25, up from 8.8 percent the previous year.
Government entities, particularly the Union government and UNICEF, are vital revenue sources for the company. Nevertheless, since these revenues largely depend on tenders, they introduce potential revenue fluctuations and restrict pricing flexibility, according to an ICRA report.
In Q3 2025, the Indian pharma and healthcare sector exhibited strong deal momentum valued at $3.5 billion, according to a recent report.
The report from Grant Thornton highlighted that the sector experienced a total of 72 transactions, marking a 28 percent increase in volume and a 166 percent rise in value quarter-on-quarter.
This included three IPOs totaling $428 million and one QIP worth $88 million.
When excluding public market activities, private transactions accounted for $3 billion across 68 transactions, indicating a significant rebound in investor interest.
The report also emphasized that the surge was propelled by seven high-value deals amounting to $2.6 billion, reflecting renewed investor confidence in scaling and consolidation within the pharma, biotech, and hospital sectors.
Point of View
It is crucial to acknowledge Bharat Biotech's potential IPO as a reflection of the company’s robust growth and the overall positive momentum in India's pharma sector. This initiative could not only bolster the company's financial standing but also contribute to advancements in vaccine production.
NationPress
1 May 2026
Frequently Asked Questions
What is Bharat Biotech planning?
Bharat Biotech is considering an initial public offering (IPO) that could raise over $500 million.
What is the purpose of the IPO?
The funds raised will support capital expenditures for a new large vaccine manufacturing facility.
How much revenue did Bharat Biotech generate in FY25?
Bharat Biotech's revenues increased to Rs 1,462.9 crore in FY25 from Rs 1,323.2 crore in FY24.
Who are the main contributors to Bharat Biotech's revenue?
Key revenue contributors include government institutions such as the Union government and UNICEF.
What trends are observed in the Indian pharma sector?
The Indian pharma sector witnessed strong deal momentum valued at $3.5 billion in Q3 2025.
