The developer of the Covaxin Covid-19 vaccine, Bharat Biotech, is contemplating an initial public offering that could generate over $500 million, as per sources from various reports. Discussions are ongoing regarding crucial aspects of the potential share sale, including its size and timing. Bharat Biotech is planning a capital expenditure of Rs 200–250 crore in FY26 for a new vaccine manufacturing facility in Bhubaneswar, Odisha, partly funded through debt from financial institutions.
The Hyderabad-based vaccine manufacturer, established in 1996 and led by Dr. Krishna Ella, has delivered more than 9 billion vaccine doses globally and remains fully promoter-owned as of July 31, 2025. Key products like TCV, RV, JE, and OPV significantly contributed to revenues in FY25, which increased to Rs 1,462.9 crore from Rs 1,323.2 crore in FY24, with operating profit margins rising to 28.2% in FY25 from 8.8% the previous year. Government entities, including the Union government and UNICEF, play a vital role in revenue generation for Bharat Biotech. However, the company faces revenue volatility due to tender-driven businesses and limited pricing flexibility, according to an ICRA report.
The pharmaceutical and healthcare sector in India experienced robust deal activity valued at $3.5 billion in Q3 2025, with a total of 72 transactions, marking a 28% increase in volumes and a 166% surge in value quarter on quarter, as per Grant Thornton. This included three IPOs totaling $428 million and one QIP amounting to $88 million. Private deals, excluding public market activity, accounted for $3 billion across 68 transactions, indicating a significant rebound in investor interest. Notably, high-value deals worth $2.6 billion drove this surge, reflecting renewed investor confidence in scale and consolidation within the pharma, biotech, and hospital sectors.
