Bharat Biotech Eyes USD 500 Mn IPO to Fuel Vaccine Manufacturing

Discussions around the IPO remain at a preliminary stage, and key details such as issue size, structure and timing may change depending on market conditions and investor appetite.

Covaxin maker, Bharat Biotech, has begun exploring plans to raise around USD 500 Mn through an IPO, according to reports, which would mark a major milestone for the Hyderabad-based vaccine developer that rose to global prominence during the COVID-19 pandemic.

Founded in 1996 and headquartered in Genome Valley, Hyderabad, Bharat Biotech has evolved into one of India’s leading vaccine manufacturers. The company gained international recognition for developing Covaxin in collaboration with the Indian Council of Medical Research (ICMR)-National Institute of Virology during the pandemic.

Discussions around the IPO remain at a preliminary stage, and key details such as issue size, structure and timing may change depending on market conditions and investor appetite.

Promoted by Dr Krishna Ella, Founder and Executive Chairman of Bharat Biotech, the company is currently entirely promoter-owned, with the promoter family holding 100% equity as of July 31, 2025. A USD 500 Mn IPO would provide a public valuation benchmark for a business that has so far operated outside capital markets scrutiny.

Bharat Biotech has distributed over 9 billion vaccine doses worldwide and maintains a portfolio spanning more than 19 vaccines and four biotherapeutics. Its offerings cover diseases including hepatitis B, typhoid, rotavirus, Japanese encephalitis, influenza H1N1, rabies, cholera, chikungunya and Zika.

The company also developed the world’s first tetanus-toxoid conjugated vaccine for typhoid and has secured over 145 global patents, with registrations in more than 125 countries and World Health Organisation pre-qualification for several products.

Financially, the company has reported revenue growth to INR 1,462.9 Cr in FY25 from INR 1,323.2 Cr in FY24, while operating margins improved to 28.2% from 8.8% a year earlier. While oral polio vaccine once contributed significantly to revenue, volumes of typhoid conjugate vaccine (TCV), rotavirus (RV) and Japanese encephalitis (JE) vaccines have expanded steadily, diversifying the revenue mix.

Government procurement agencies, including the Government of India and UNICEF, remain key customers. However, tender-based institutional sales expose the business to pricing pressure and revenue variability. Elevated inventory levels in FY25, partly linked to expansion at Sapigen Biologix in Bhubaneswar, have increased working capital intensity, though inventory days are expected to moderate as production stabilises in FY26.

The company has also expanded internationally, recently signing a technology transfer agreement with Spain-based Biofabri, part of the Zendal group, to produce and supply MTBVAC tuberculosis vaccines to over 70 countries across Africa and Southeast Asia.

Separately, its group company Biovet received regulatory approval for Biolumpivaxin, a lumpy skin disease vaccine for dairy cattle developed with ICAR.

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