Indegene IPO Closes With Strong Subscription; Listing Gains Expected Above 25%
The allotment for the issue is scheduled on 09 March, followed by listing on NSE and BSE on 13 May
Indegene, the digital services provider for the life science industry, closed for initial public offering (IPO) public bids on 08 May which attempted to raise Rs 1,841 crore with its combination of fresh issue and offer-for-sale component (OFS).
The IPO window for public subscription opened on 06 May. The allotment for the issue is scheduled on 09 March, followed by listing on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 13 May.
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.com.
The Rs 1,841 book-built issue consisted of fresh issuance worth Rs 760 crore and OFS worth Rs 1,081 crore with a price band of Rs 430 to 452.
Analyst Note
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.
Kotak Mahindra Capital, Citigroup Global Markets, J.P. Morgan and Nomura Financial Advisory and Securities are the book running lead managers, while Link Intime India is the registrar to the issue.
The promoters cumulatively own over 30 per cent stake in the firm which will be further diluted post-IPO.
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.
