India’s Health-Tech IPO Rush Gains Momentum
India’s health-tech sector is witnessing a significant surge in initial public offerings (IPOs), driven by the growing adoption of digital technologies and artificial intelligence (AI) in healthcare. Since January 2024, five out of 12 healthcare IPOs have been from health-tech companies, collectively raising over Rs 11,000 crore.
The COVID-19 pandemic has been a major catalyst for this trend, accelerating the digitization of healthcare services and highlighting the importance of tech-enabled solutions. According to Amitabh Malhotra, Vice-Chairman of Investment Banking at HSBC India, “The Indian healthcare services market presents a compelling growth story, underpinned by its significant potential and current under-penetration.”
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Vivek Tandon, Vice-President at Primus Partners, noted that the pandemic has boosted investor interest in companies offering telemedicine, diagnostics, and health data solutions. The growing use of AI in healthcare has further enhanced the appeal of these companies.
Several health-tech firms are gearing up for IPOs in the coming years, including QubeHealth, Vitraya, Practo, and Medulance. QubeHealth plans to file for an IPO by FY31 with a proposed issue size of approximately Rs 800 crore. Vitraya is targeting an IPO issue size of Rs 500 crore within the next 24 to 36 months.
The outlook for the healthcare sector remains strong, supported by inelastic demand and the growing need for healthcare services. As Chokkalingam G, Founder of Equinomics, noted, “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.”
