Aragen Life Sciences Eyes Rs 3,500 Crore IPO with Goldman Sachs Backing

Aragen Life Sciences, backed by Goldman Sachs and healthcare-focused private-equity firm Quadria Capital, plans to file draft papers for an initial public offering (IPO) that could raise up to Rs 3,500 crore. The company operates as a contract research, development and manufacturing organisation, providing services across drug discovery, development and commercial manufacturing.

Aragen serves over 400 customers across the pharmaceutical, biotechnology, agrochemical and animal-health industries. It operates facilities across Hyderabad, Bengaluru, Pune, and Visakhapatnam in India, besides a biologics research campus in Morgan Hill, California.

The proposed IPO will comprise a fresh issue of shares as well as an offer for sale by existing shareholders. The company plans to use the fresh capital primarily to repay borrowings and fund capital expenditure for growth projects as it expands its research and manufacturing capabilities.