Biocon founder Kiran Mazumdar-Shaw has raised serious concerns over India’s existing IPO framework, stating that it does not align with the unique growth cycle of biotechnology startups.
Speaking in Bengaluru, she emphasized that biotech companies typically require 10–12 years of intensive research, development, and clinical trials before they begin generating revenue. This long gestation period makes it nearly impossible for such firms to meet SEBI’s current requirement of a consistent three-year revenue track record for public listing.
“We don’t have listing norms that allow companies to go public as pre-revenue or even pre-clinical firms,” Mazumdar-Shaw noted, highlighting a critical gap in India’s regulatory ecosystem.
She contrasted this with global markets, particularly the United States, where biotech startups can access public funding much earlier in their lifecycle. “In the US, companies can list even at the clinical stage. In India, SEBI requires a revenue track record. How can a biotech company in trials ever qualify?” she questioned.
According to Mazumdar-Shaw, this regulatory mismatch is not just a compliance issue it has far-reaching consequences. It limits access to capital for innovation-driven startups, weakens India’s venture capital landscape, and ultimately drives scientific talent and breakthrough ideas out of the country.
She cited the case of Bicara Therapeutics, an oncology-focused venture originally incubated within Biocon. Despite conducting all its research and development in India, the company was eventually structured in the US due to more favorable regulatory conditions. “India does not value innovation the way the US does,” she said, pointing to the systemic challenges faced by deep-tech entrepreneurs.
Her remarks underline a broader industry concern: unless India reforms its IPO policies to accommodate early-stage biotech firms, the country risks losing out on becoming a global hub for science-led innovation.
For India to truly compete on the global biotech stage, experts believe that enabling earlier market access, encouraging risk capital, and building a supportive regulatory framework will be crucial.
