Covaxin Maker Bharat Biotech Considers IPO, Likely to Raise $500 Mn

Bharat Biotech, the developer of Covid-19 vaccine Covaxin, is weighing plans for an initial public offering that could raise upwards of $500 million, Bloomberg reported, citing sources on Friday. It added that discussions are still underway, and key aspects of the proposed share sale, including its size and timing, remain subject to change.

The company refused to comment on the report when contacted by Outlook Business.

Founded in 1996, the company has supplied more than 9 billion vaccine doses globally. Its portfolio includes vaccines for Covid-19 and hepatitis B, along with treatments for burns and diarrhoea. Promoted by Dr Krishna Ella, the vaccine manufacturer serves both domestic and export markets and remains entirely promoter-owned. Its key vaccine offerings include TCV, RV, JE and OPV, with the top four products contributing a substantial share of revenues in FY25.

As of July 31, 2025, the promoter family held 100% equity stake in the company, directly or indirectly.

As per an earlier credit rating report by ICRA, Bharat Biotech’s revenue rose to ₹1,462.9 crore in FY25 from ₹1,323.2 crore in FY24. Operating profit margins also improved significantly to 28.2% in FY25, compared with 8.8% in the previous fiscal year.

In FY26, the company is expected to incur capital expenditure of ₹200–250 crore for a large vaccine manufacturing facility being developed under Sapigen Biologix Pvt Ltd in Bhubaneswar, Odisha. This investment is being partly financed through debt raised from financial institutions, as per the ratings agency.

While OPV historically accounted for a large portion of Bharat Biotech’s revenue, the company’s reliance on it has declined as volumes of TCV, RV and JE vaccines have steadily increased. Despite competition in the RV and JE segments, Bharat Biotech continues to maintain a strong position in export markets.

Government institutions, including the government of India and UNICEF, remain key revenue contributors for the company through institutional procurement. However, as these businesses are largely tender-driven, they expose the company to revenue volatility from potential tender losses and limit pricing flexibility, as per ICRA. This risk is partly offset by Bharat Biotech’s established manufacturing capabilities and long-standing supply relationships with these agencies.

As of March 31, 2025, the company’s working capital intensity remained elevated due to higher inventory levels. Inventory days increased from 268 in FY24 to 340 in FY25, primarily due to longer supplier lead times and additional inventory built up for the Sapigen facility. With production expected to commence at the Sapigen plant in FY26, inventory days are likely to moderate.