Indegene IPO Debuts With A Bang; Issue Claims 45% Premium Listing
Long term investors are suggested to hold their position by keeping stop-loss and continue monitoring the company's performance and market conditions, says expert
Indegene, the digital services provider for the life science industry, debuted on the bourses with a bang as the issue claimed 45 per cent premium listing at Rs 655 against its issue price of Rs 452.
The issue opened on 06 May which attempted to raise Rs 1,841 crore with its combination of fresh issue worth Rs 760 crore and offer-for-sale component (OFS) worth Rs 1,081 crore.
The retail investors bidding witnessed nearly eight times subscription in three days, whereas the total subscription stood more than 70 times as qualified institutions showed keen interest in the issue by subscribing 192 times, as per data by chittorgarh.
However, after the debut, Indegene stock failed to sustain its gain amid market volatility and trimmed its gain to 20 per cent to Rs 543 in the morning trade on the National Stock Exchange (NSE).
Analysts Note
“This impressive performance comes on the back of a strong investor response, with the IPO receiving an overwhelming 70 times subscription. Long term investors are suggested to hold their position by keeping stop-loss and continue monitoring the company's performance and market conditions,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Earlier, Rajan Shinde, Research Analyst, Mehta Equities recommended to ‘Subscribe’ the issue for long-term and expected more than 25 per cent listing gains on the basis of robust financials, attractive valuations and business monopoly.
IPO Objectives
The company proposed to utilise net proceeds of Rs 760 crore to repay debt of one of the material subsidiaries, ILSL Holdings and funding the capex requirements of the firm and material subsidiaries.
The proceeds will also be used for inorganic growth, and general corporate purposes.
Firm’s Financials
The firm registered revenue of Rs 2,364 crore in FY23, compared to Rs 1,690 crore in FY22. The firm’s profit after tax (PAT) increased to Rs 266 crore in FY23 compared to Rs 162 crore in FY22. Overall, revenue and PAT increased by 39.85 per cent and 63.43 per cent respectively.
About Indegene
Founded in 1998, Indegene provides digital services for the life sciences industry. The firm assists with drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales/marketing support.
Indegene caters its services for enterprise commercial solutions, omnichannel activation, enterprise medical solutions and enterprise clinical solutions and consultancy services.
