Upcoming Healthcare Industry IPOs in 2021

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28 Jun, 2021

8 min read

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All eyes are on the healthcare sector. Not just expectantly waiting for it to save the world for Covid-19, but also as an investment avenue.

Moreover, healthcare, especially pharmaceuticals, is traditionally seen as a relatively foolproof sector for investors to reap earnings on their capital. The logic is that the population will continue to grow, people will continue to fall sick; a higher population means a higher number of sick people, meaning demand for medication and hospitals and allied services corresponding to growth for pharmaceutical companies and the healthcare sector as a whole. Such was the investor sentiment in pre-Covid times. Now, of course, pharmaceutical companies, particularly those in the running for vaccine releases, are being seen as ripe investment options. Further, given that everyone – except the sick – is supposedly in lockdown, it is clear to many investors that healthcare is where the money is. For many investors, the resilience of the healthcare sector during the ongoing trying economic times is the main draw.

Whether your interest in healthcare sector stocks is not anything new or prompted by the financial opportunity presented by the misfortune of Covid-19; or even if you’ve just woken up to the sector’s resilience while observing your portfolio’s performance over the last 12 months, the coming months have plenty for healthcare stock enthusiasts to be excited about. We have lined up 9 upcoming healthcare IPOs that you might be able to look forward to. The following companies are at various stages of getting their IPO off the ground:

1. Glenmark Lifesciences

Hands-down the best-known name on this list of upcoming healthcare IPOs in 2021, Glenmark Lifesciences has applied for a fresh issue of shares of Rs 1,160 crore and an offer for sale (OFS) of up to 7.31 million shares. Glenmark manufactures and supplies a total of 130 active pharmaceutical ingredients to about 65 countries. Besides manufacturing, this pharma giant also operates in contract development.

2. Supriya Lifesciences

This healthcare sector company has filed its draft herring prospectus and is seeking permission for an IPO of Rs 200 crore fresh issue stock and Rs 1000 crore worth of shares under OFS. Supriya Lifesciences manufactures and supplies a total of 39 active pharmaceutical ingredients for a variety of categories such as antihistamine, anti-asthmatic, analgesic, anesthetic, anti-allergic and vitamin.

Capital raised from the IPO will be utilized for the settlement of debts, miscellaneous corporate expenses and for the company’s capital requirements.

 

3. Windlass Biotech

This proposed healthcare IPO is to include a fresh shares issue of Rs 165 crore and an offer for sale of a little over 51 lakh shares. A pre-IPO placement of Rs 50 crore is also being mulled. Windlass Biotech filed its draft herring prospectus with SEBI in the middle of May. The company’s business scope includes both manufacturing and developing contracts for pharmaceutical formulations.

4. Emcure Pharmaceuticals

Investors can look forward to a Rs 3,000 crore to Rs 4,000 crore IPO by Emcure Pharmaceuticals, consisting of both a fresh issue as well as an OFS, like many other names on this list. However, unlike any of the other names on this list of healthcare IPOs Emcure Pharmaceuticals manufactures generic medicine.

The company recently parted ways with its US arm. There is no news right now on what investor capital is intended to be channeled towards, but according to newspapers, the company is aiming to put a 20% stake on the stock market. One of the reasons that Emcure Pharmaceuticals is being watched is possibly on account of Bain Capital holding a 13% stake in it.

5. Veeda Clinical Research

In the headlines for the second time in a quarter, Veeda Clinical Research has been reported to be preparing for an IPO of about Rs 500 crore, possibly even Rs 700 crore. Barely two months ago Veeda Clinical Research was in the news for having acquired a stake in pre-clinical research firm Bioneeds.

The IPO will most likely be an OFS by the private equity firm that has been packing the firm, CX Capital.

6. Star Health

Several top newspapers including HT Mint have reported that Star Health intends to put out an IPO for Rs 2000 crore. We’ll have to wait and watch for more developments and actual details on this one because thus far, it is entirely hearsay – the company is expected to file its draft herring prospectus at the end of May. Why so much news around a company that is yet to be listed and hasn’t even filed its draft herring prospectus yet? Well the company is owned in part by bullish investor Rakesh Jhunjhunwala (among a consortium of other individual investors).

7. Medi Assist Healthcare Services

Entirely OFS, the proposed offer is for 2.80 crore shares of the company. Medi Assist Healthcare services operates in the tech domain of health and insurance – its customers include employers and healthcare schemes.

8. Krsnaa Diagnostics

The proposed offer is intended to include a fresh issue of Rs 400 crore and an OFS of up to a little over 94 lakh shares. As the name suggests, the company has a chain of diagnostic centres – it has a footprint of more than 1800 diagnostic centres across 13 states.

Investor capital from the IPO will be used to finance expansion of its diagnostic centre footprint, for settlement of debts and miscellaneous corporate spends.

9. Krishna Institute of Medical Sciences

Thi IPO consists of a fresh stock issue of Rs 200 crore and an offer for sale of over 2.13 crore shares. The healthcare – abbreviated as KIMS – has filed its draft herring prospectus. KIMS has a footprint of 9 multispecialty hospitals and over 2,500 operational beds. Its list of specialties is quite long, covering cardiac sciences, gastric sciences, mother and infant care, neuroscience, oncology, orthopedics, organ transplants and renal sciences.

If you intend to invest in an upcoming healthcare IPO, you can do so very easily using the Angel Broking app. You can also keep an eye on your stock market investments on the go – anytime, anywhere – as long as you have an internet connection. The Angel Broking app is free and you can you're your trading account up and running without minutes, with just a few easy documents.

Always remember, everyone can invest irrespective of age, gender or occupation. You must however do a little bit of research and you must ensure you understand what you are investing in – as you are doing now, by reading this blog. Keep up the good work: research diligently, practice safe investing and of course, start your investment journey sooner rather than later.

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