New Delhi — Bharat Biotech, the developer of the Covid-19 vaccine Covaxin, is reportedly exploring an initial public offering (IPO) that could raise more than $500 million, according to sources cited in multiple reports.
Discussions are currently underway on key aspects of the proposed share sale, including its size and timing, the sources said.
The Hyderabad-based vaccine maker is planning a capital expenditure of Rs 200–250 crore in FY26 for a large vaccine manufacturing facility being developed under Sapigen Biologix Pvt Ltd in Bhubaneswar, Odisha. The project will be partly funded through debt raised from financial institutions.
Founded in 1996 and promoted by Dr Krishna Ella, Bharat Biotech has supplied over 9 billion vaccine doses globally. As of July 31, 2025, the company remains entirely promoter-owned.
In FY25, the company’s leading products — including TCV, RV, JE and OPV vaccines — contributed significantly to revenue growth. Total revenues rose to Rs 1,462.9 crore in FY25 from Rs 1,323.2 crore in FY24, while operating profit margins improved sharply to 28.2 per cent from 8.8 per cent a year earlier.
Government bodies, including the Union government and UNICEF, continue to be major revenue contributors. However, a report by ICRA noted that the company’s dependence on tender-driven business exposes it to revenue volatility and limits pricing flexibility.
Meanwhile, India’s pharma and healthcare sector recorded strong deal activity worth $3.5 billion in Q3 2025, according to a recent report by Grant Thornton. The sector saw 72 transactions during the quarter, reflecting a 28 per cent rise in volume and a 166 per cent increase in value quarter-on-quarter.
The report highlighted three IPOs worth $428 million and one qualified institutional placement (QIP) worth $88 million. Excluding public market activity, private deals accounted for $3 billion across 68 transactions, indicating a sharp rebound in investor interest.
The surge was driven largely by seven high-value deals totalling $2.6 billion, underscoring renewed investor confidence in scale and consolidation opportunities across the pharma, biotech and hospital segments.
With inputs from IANS