Healthcare companies, which have grown manifold and provided significant assistance both on physical and virtual platforms during the covid-19 pandemic, are increasingly trying to raise funds through capital markets.
This has prompted a shift towards virtual care delivery, a focus on mental health and well-being, and a push for speedier drug and vaccine candidate discovery.
This would not have been possible without the contributions of new-age healthtech companies, analysts said. From wellness and hospital groups to diagnostic services and bulk drugmakers, most are keen on going public.
Nearly 13 of the healthcare and pharma companies plan to raise nearly ₹21,000 crore through the market this year through their initial public offerings (IPOs), according to data from research firm Prime Database.
These include Rainbow Children’s Medicare, Yatharth Hospital, Mediassist Healthcare Services, Skanray Technologies, Infinion Biopharma, Healthium Medtech, Veeda Clinical Research, Sahjanand Medical Technolgies, Global Health, GPT Healthcare, API Holdings, Kids Clinic India, Macleods Pharmaceutricals, and Portea Medical.
“A lot of healthcare and pharma companies are raising money as their businesses are booming,” said Salil Kallianpur, former executive vice President at GlaxoSmithKline plc.
In less than a year, 12 healthcare companies raised ₹11,584 crore. These include Nureca , Krishna Institute of Medical Sciences, Tatva Chintan Pharma, Glenmark Life Sciences, Windlas Biotech, Krsnna Diagnostics, Ami Organics, Vijaya Diagnostics, Sigachi Industies, Tarson Products , Medplus Health Services, and Supriya Life Sciences. Most are trading on positive levels even post their listing.
HealthQuad, an India-focused healthcare venture capital firm, has raised $162 million ( ₹1,215 crore) in the final close of its second fund. The firm, which counts Medikabazaar, Ekincare, Healthifyme and Qure.ai in its portfolio of invested companies, has got global pharma maker MSD (Merck & Co, Inc.) as its anchor investor for the new fund.
Of the companies that plan to go public, ChrysCapital-backed Mankind Pharma, has initiated preliminary discussions with investment bankers to launch a mega initial pu
blic offering (IPO) in 2022. The pharma company plans to raise nearly ₹4,000 crore from the market, according to people aware of the development.
Mankind Pharma, which has an extremely diversified portfolio, has an India-specific strategy with a good exposure to tier-II and -III markets and a non-prescription-based portfolio, which proved very fruitful, Kallianpur said.
Mankind Pharma is now looking at international growth, he said.
There are likely to be more healthtech IPOs and large-ticket mergers and acquisitions, analysts also pointed out. Companies such as PharmEasy are making quick acquisitions, collaborating with companies and building a full platform for the consumers, aiming to get customers on a subscription-based model and make money overall, Kallianpur added.
Another trend is that, apart from conventional pharma companies, a lot of technology-driven health tech companies are booming. A lot of private equity players have evinced interest in that area, said an analyst on the condition of anonymity.