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

Health-tech IPOs (initial public offerings) are on the rise in India's healthcare sector — in fact, five out of the 12 healthcare IPOs in the last one-and-a-half years since January 2024 are health-tech companies. According to data shared by PRIME Database, the healthcare sector has seen 12 IPOs since January 2024, with a total issue size of Rs 20,576 crore. Of these, five companies — Entero Healthcare Solutions, Indegene, Sagility India, Sai Life Sciences and Inventurus Knowledge Solutions — are health-tech firms that have collectively raised over Rs 11,000 crore. Other major healthcare IPOs include Emcure Pharmaceuticals, Akums Drugs and Dr Agarwal's Healthcare. The Covid-19 pandemic had a deep impact on the sector and accelerated digitisation, strengthened public and private focus on tech-enabled healthcare solutions, facilitated government easing, and encouraged the 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 incomes, 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 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 a rising focus on technology-driven solutions — spurred by both public initiatives such as e-Sanjeevani and private sector tech-focused offerings, said 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 has made it easier for health-tech firms to scale and access public markets,' added Tandon. More firms are gearing up for IPOs over the coming years, including QubeHealth, Vitraya, Practo, Medulance, among others. Mumbai-based B2B health-tech-fintech firm QubeHealth has announced plans to file for an IPO by FY31, with a proposed issue size of approximately Rs 800 crore. 'We expect to process Rs 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,' said Chris George, CEO, QubeHealth. Vitraya, a Delhi-based health-tech company, said it plans to file its Draft Red Herring Prospectus (DRHP) within the next 24 to 36 months. The company is targeting an IPO issue size of Rs 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 and co-founder, Vitraya Technologies. Most of the listed players in the healthcare sector are trading at substantial valuation premiums, making IPOs 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.' '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.' 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 ( 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 HEALTH CARE LTD. 29/Jan/2025 402 3,027.26