Bharat Biotech mulls IPO to raise over USD 500 million

New Delhi: The developer of Covid-19 vaccine Covaxin, Bharat Biotech is considering an initial public offering that could raise over USD 500 million, according to sources cited by multiple reports. Discussions are underway including key aspects of the proposed share sale, including size and timing, they said. Bharat Biotech plans Rs 200–250 crore of capital expenditure in FY26 for a large vaccine manufacturing facility being developed under Sapigen Biologix Pvt Ltd in Bhubaneswar, Odisha, partly financed through debt raised from financial institutions. The Hyderabad‑based vaccine maker, founded in 1996 and promoted by Dr Krishna Ella, has supplied over 9 billion vaccine doses globally and remains entirely promoter‑owned as of July 31, 2025. The company’s top products such as TCV, RV, JE and OPV contributed a substantial share of revenues in FY25, as the revenues rose to Rs 1,462.9 crore in FY25 from Rs 1,323.2 crore in FY24 and operating profit margins improved to 28.2 per cent in FY25 from 8.8 per cent the prior year. Government institutions, including the Union government and UNICEF, remain key revenue contributors. However, as these businesses are largely tender-driven, they expose the company to revenue volatility from potential tender losses and limit pricing flexibility, a report from ICRA said. The pharma and healthcare sector in India witnessed robust deal momentum valued at $3.5 billion in Q3 2025, according to a recent report. Grant Thornton said in the report that the sector recorded a total of 72 transactions, up 28 per cent in volumes and 166 per cent in value quarter on quarter. This included three IPOs worth USD 428 million and one QIP worth USD 88 million, the report said. Excluding public market activity, private deals accounted for USD 3 billion across 68 transactions, marking a sharp rebound in investor appetite. The report noted that the surge was driven by seven high value deals worth USD 2.6 billion, reflecting renewed investor confidence in scale and consolidation plays across pharma, biotech, and hospital segments.