Credit:- Sugandh Khandelwal
India’s healthcare and pharmaceutical sectors raised ₹14,811 crore through initial public offerings (IPOs), marking the highest annual fundraising since 2019. The surge reflects robust domestic demand and expanding global opportunities for Indian companies.
What role does investor confidence play?
The Indian pharmaceutical companies are capitalizing on global markets, leveraging cost advantages and manufacturing capabilities to export generic medicines and vaccines. Various government initiatives contribute to streamline regulatory processes and promote the healthcare sector which in turn has created a conducive environment for public listings. At the same time, India’s growing middle class and increased healthcare awareness have led to higher demand for medical services and products, encouraging companies to expand and seek public investment. Investors are drawn to IPOs that offer competitive valuations, with the promise of growth as the companies expand. The healthcare sector, known for its strong growth prospects, has been particularly appealing to both retail and institutional investors in 2024. Therefore, the success of recent IPOs has boosted investor confidence, attracting both domestic and international investors to the sector.
Key IPOs that shaped the ₹14,811 Crore Surge
GPT Healthcare Limited: A prominent healthcare provider in Eastern India operating under the ILS hospital’s brand that launched its IPO in February 2024. The IPO received robust participation, with an overall subscription of 8.52 times. The stock listed at ₹215 per share, marking a 15.59% premium over the issue price of ₹186.
Emcure Pharmaceuticals: Specializing in women’s healthcare and HIV treatments, Emcure launched its IPO in July 2024. The IPO oversubscribed nearly 68 times, raising ₹1,930 crore ($234 million). The company’s shares debuted at a 35% premium, indicating strong investor confidence.
Akums Drugs and Pharmaceuticals: The leading contract development and manufacturing organization (CDMO) went public in August 2024. The IPO was well-received, with shares listing at a 7% premium on the Bombay Stock Exchange and National Stock Exchange.
Niva Bupa Health Insurance: In November 2024, Niva Bupa Health Insurance Company Limited, a joint venture between Bupa Group and Max India, completed an IPO on the National Stock Exchange of India, raising ₹2,200 crore (approximately £200 million). Shares of Niva Bupa were listed on stock exchanges at 5.5-6% premium over the IPO price of ₹74.
IKS Health: The firm made its market debut in December 2024. Its IPO was fully subscribed on the first day, with shares surging 48% upon listing, indicating strong market confidence. The stock listed at ₹1,900 on the NSE, a premium of 42.96%, while it listed at a premium of 39.65%, at ₹1,856 on the BSE. The listing was better than grey market estimates where shares were commanding a premium of 32%.
What’s Next? Healthcare and Pharma IPOs to Watch in 2025
Mankind Pharma: A leading pharmaceutical company known for its diverse product portfolio, Mankind Pharma is expected to launch its IPO in 2025, aiming to raise significant capital to expand its operations.
Max Healthcare: Operating a network of hospitals across India, Max Healthcare plans to go public in 2025. The IPO is anticipated to attract substantial investor interest due to the company’s strong market position and growth prospects.
Lupin: A global pharmaceutical company with a significant presence in India, Lupin is considering an IPO in 2025 to fund its expansion and research initiatives.
IPCA Laboratories: Specializing in the manufacturing of active pharmaceutical ingredients and formulations, IPCA Laboratories is planning an IPO in 2025 to enhance its production capabilities and market reach.
Piramal Pharma: Part of the Piramal Group, Piramal Pharma is set to launch an IPO in 2025, aiming to strengthen its position in the pharmaceutical industry and expand its global footprint.
Paras Healthcare: Paras Healthcare, a leading private healthcare provider, announced plans to launch an IPO to fund further expansions and enhance healthcare services, signaling continued momentum in the sector. It comprises a fresh issue of ₹400 crore and an offer for sale of 1,49,74,010 shares.
Market Outlook for 2025:
Despite a slight decline in private equity and venture capital investments in India’s healthcare sector in 2024, the IPO market remains robust. Overall, 2024 has been a transformative year for India’s healthcare IPO landscape, characterized by record fundraising, strategic investments, and a shift towards specialized healthcare services. With several companies planning IPOs to fund expansion and innovation, the momentum in the healthcare and pharmaceutical sectors is expected to continue into 2025. Investors remain optimistic about the industry’s growth prospects, driven by ongoing demand for healthcare services and products. The surge in IPOs has been accompanied by a growing interest in single-specialty healthcare sectors including eye care, dental, IVF, oncology, and orthopedics. Analysts anticipate continued growth with opportunities in off-patent products, biosimilars and innovative therapies.
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