Indegene IPO: The initial public offering of Indegene Ltd, which provides digital services for the life sciences industry, was on May 6 opened for public subscription and the issue has been fully subscribed. Till 4:19 pm on the first day of bidding on Monday, the Rs 1,842-crore IPO received an overall 1.52 times, garnering bids for 4,33,76,949 shares as against 2,86,25,450 shares on offer.
The retail category has been fully subscribed and has so far received 1.44 times subscription before the end of the first day of bidding, while the non-institutional investor (NII) category was fully subscribed within few hours of its opening and has so far received 3.68 times subscription. The qualified institutional buyers (QIBs) has got just 3 per cent subscription.
The Indegene IPO will remain open for public subscription till May 8. The share allotment will likely be finalised on May 9, while the listing will take place on May 13 on both BSE and NSE.
The price band of the IPO has been fixed at Rs 430-Rs 452 per share.
Indegene IPO GMP Today
According to market observers, unlisted shares of Indegene Ltd are trading Rs 262 higher in the grey market as compared with its issue price. The Rs 262 grey market premium or GMP means the grey market is expecting a 57.96 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Indegene IPO: Should You Apply?
Granting ‘Apply’ rating to the IPO, brokerage Swastika in its note said, “Indegene’s financial performance reflects consistent growth over the past three fiscal years, supported by a robust client base of 65 active clients as of December 31, 2023. Additionally, the company possesses a well-developed technology portfolio, further solidifying its digital capabilities.”
While the P/E valuation of 37.79x appears reasonable, the absence of directly comparable listed peers limits a definitive assessment. However, considering Indegene’s unique market position, strong growth trajectory, and established client base, “we recommend this IPO to investors for listing gain and long term”, it added.
Another brokerage Ventura also recommended to subscribe the IPO. It said, “With a workforce of 5181 employees and a global footprint spanning North America, Europe, and Asia, the company is well-positioned to meet the evolving needs of its clients. Moreover, Indegene has carved out a unique niche in the market, boasting nearly 98% of global revenue and demonstrating strong growth potential with an anticipated average CAGR of 6.5% in the coming years. Overall, Indegene’s blend of domain expertise and technological prowess positions it as a key partner for life sciences companies seeking to thrive in an increasingly digital-driven landscape.”
SBI Securities also recommended investors to ‘subscribe’ to the Indegene IPO.
“The company (Indegene) is valued at annualized FY24 P/E multiple of 30.5x based on the upper price band on the post-issue capital. The company operates with a unique business model with strategic client’s relationship
with 20 of the Top 20 global biopharmaceutical companies in FY23. The company recorded a strong PAT CAGR of 12.7% between FY21-FY23 and is expected to become net debt free post issue. We recommend investors to SUBSCRIBE tothe issue,” SBI Securities said.
About Indegene IPO
The IPO comprises a fresh issue of 16.8 million shares, valued at Rs 760 crore, alongside an offer for sale (OFS) of 23.9 million shares, worth Rs 1,081.76 crore.
For investors, the minimum lot size for an application is 33 shares. The minimum amount of investment required by retail investors is Rs 14,916. The minimum lot size investment for small NII is 14 lots (462 shares), amounting to Rs 2,08,824, and for bNII, it is 68 lots (2,244 shares), amounting to Rs 10,14,288.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory And Securities (India) Pvt Ltd are the book-running lead managers of the Indegene IPO, while Link Intime India Private Ltd is the registrar for the issue.
About Indegene Limited
Indegene Limited, which was founded in 1998, provides digital services for the life sciences industry. It assists with drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales/marketing support.
The company offers services in four categories — enterprise commercial solutions, omnichannel activation, enterprise medical solutions, and
enterprise clinical solutions & consultancy services.
Its revenue surged 39.85 per cent and its profit after tax (PAT) rose 63.43 per cent in the financial year 2022-23.
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