Health-tech sees IPO rush fueled by digitisation, govt ease, AI adoption

India's post-pandemic healthcare IPO landscape is evolving fast, with health-tech firms leading the charge as AI, digitisation and policy reforms attract fresh investor interest

Health-tech IPOs (initial public offers) are on the rise in India's healthcare sector — in fact, five out of the 12 healthcare public issues in the last one-and-half years have been floated by health-tech companies.

 

According to data shared by PRIME Database, the healthcare sector saw 12 IPOs since January 2024 with a total issue size of ₹20,576 crore. Of these, five public issues belonged to health-tech companies — Entero Healthcare Solutions, Indegene, Sagility India, Sai Life Sciences, and Inventurus Knowledge Solutions. These five issues raised over ₹11,000 crore. Other major healthcare IPOs included Emcure Pharmaceuticals, Akums Drugs, and Dr Agarwal's Healthcare.

 

Covid-19 pandemic had a deep impact on the sector and it accelerated digitisation, a sharper public and private focus on tech-enabled healthcare solutions, government ease, and adoption of artificial intelligence (AI) across the spectrum, from diagnostics to personalised treatment.

 

Amitabh Malhotra, vice chairman of investment banking at HSBC India, noted that the combination of rising income, greater insurance penetration, growing demand for medical infrastructure, and India’s cost competitiveness positions the healthcare industry for sustained, multi-decade growth, driven largely by the private sector. 

 

“The Indian healthcare services market presents a compelling growth story, underpinned by its significant potential and current under-penetration. With healthcare expenditure around 3 per cent of gross domestic product (GDP) and per capita spend of $57 — among the lowest globally — the sector is ripe for transformation,” Malhotra noted.

 

Health-tech IPOs in India have witnessed significant growth in recent years, fuelled by increasing digitisation of healthcare and rising focus on technology-driven health solutions. This focus was spurred by initiatives like e-Sanjeevani and private sector tech-focused health solution, noted Vivek Tandon, vice president at Primus Partners.

 

“The pandemic played a major role in highlighting the importance of digital health infrastructure, boosting investor interest in companies offering telemedicine, diagnostics, and health data solutions. The growing use of AI in healthcare, from diagnostics to personalised treatment, has further enhanced the appeal of these companies. Additionally, government focus and ease of reforms have made it easier for health-tech firms to scale and access public markets,” added Tandon.

 

More health-tech firms, like QubeHealth, Vitraya, Practo, and Medulance, are gearing up for IPOs over the coming years.

 

Mumbai-based B2B (business-to-business) health-tech & fintech firm QubeHealth announced plans to file for an IPO by 2030-31 (FY31), with a proposed issue size of ₹800 crore. “We expect to process ₹1,000 crore a year in healthcare payments by FY30, by the time we are ready for our IPO, growing at an average of 70 per cent year-on-year (Y-o-Y),” said Chris Gerorge, chief executive officer (CEO), QubeHealth. 

  Vitraya, a Delhi-based company, said it was planning to file its draft red herring prospectus (DRHP) within the next 24-36 months. The company is targeting an IPO issue size of ₹500 crore.

 

“The tech sector is heavily regulated, so going public through an IPO offers added credibility and reassurance to both our customers and regulators. For us, the IPO is more about embracing transparency and navigating regulatory frameworks than raising capital or seeking liquidity. Currently, around 80 per cent of our revenue comes from India and 20 per cent from international markets. Post-IPO, we expect the domestic share to further outpace international contributions,” said Mrinal Sinha, CEO & co-founder, Vitraya Technologies.

 

Most of the listed players in the healthcare sector are trading at substantial valuation premiums, making IPO an important factor, said Chokkalingam G, founder of Equinomics. “The sector’s outlook remains strong, supported by inelastic demand — healthcare is a necessity, and consumers are unlikely to cut back on related expenses even in challenging times,” he said.

 

“Previously, IPO activity was largely concentrated in pharmaceutical companies and standalone hospitals. However, the landscape is now expanding to include a wide range of ancillary businesses that support healthcare providers. Many of these companies are seeking growth capital and providing liquidity for existing investors. As a result, we are likely to see a significant number of IPOs from this space over the next three years,” Chokkalingam said.

 

Healthcare IPOs 1.1.2024 onwards

  Industry: Hospitals/Diagnostic Services, Medical Equipment/Supplies/Accessories & Pharmaceuticals & Drugs 

SNO.	COMPANY	OPENING  DATE	OFFER  PRICE  (Rs.)	ISSUE  AMOUNT  (Rs.crore)
1	ENTERO HEALTHCARE SOLUTIONS LTD.	09/Feb/2024	1,258	1,600.00
2	GPT HEALTHCARE LTD.	22/Feb/2024	186	525.14
3	INDEGENE LTD.	06/May/2024	452	1,841.76
4	EMCURE PHARMACEUTICALS LTD.	03/Jul/2024	1,008	1,952.03
5	AKUMS DRUGS & PHARMACEUTICALS LTD.	30/Jul/2024	679	1,856.74
6	SAGILITY INDIA LTD.	05/Nov/2024	30	2,106.40
7	SURAKSHA DIAGNOSTIC LTD.	29/Nov/2024	441	846.25
8	SAI LIFE SCIENCES LTD.	11/Dec/2024	549	3,042.62
9	INVENTURUS KNOWLEDGE SOLUTIONS LTD.	12/Dec/2024	1,329	2,497.92
10	SENORES PHARMACEUTICALS LTD.	20/Dec/2024	391	582.11
11	LAXMI DENTAL LTD.	13/Jan/2025	428	698.06
12	DR.AGARWAL'S HEALTH CARE LTD.	29/Jan/2025	402	3,027.26

 

Source: primedatabase.com