Aragen Life Sciences Files DRHP with SEBI for IPO with ₹800 Crore Fresh Issue

Hyderabad-based contract research, development and manufacturing organisation Aragen Life Sciences, formerly known as GVK Biosciences, has filed its draft red herring prospectus with the capital markets regulator, Securities and Exchange Board of India, to launch an initial public offering.

The proposed initial public offering comprises a fresh issue of shares worth approximately ₹800 crore alongside an offer for sale of up to 27,329,192 equity shares of face value ₹10 each by existing shareholders.

According to the regulatory filing, the GVK Group company intends to allocate the net proceeds generated from the fresh issue toward the repayment or prepayment of its outstanding borrowings. In addition, the funds will be deployed for the purchase of new equipment and machinery for the company’s facilities located in Hyderabad.

The proceeds will also finance capital expenditure requirements at the Bengaluru facility of Aragen Biologics, a material subsidiary of the firm, alongside funding general corporate purposes to support ongoing business expansion.

Incorporated in 2000, Aragen Life Sciences provides contract discovery, pre-clinical research, development, and manufacturing services for small molecules and biologics to global life sciences enterprises.

The company operates what it describes as the second-largest contract research solutions platform in India in terms of scientific personnel among assessed industry peers. Aragen caters to an international client base working on new chemical entities and new biological entities across sectors including pharmaceuticals, biotechnology, animal health, agrochemicals, and specialty chemicals.