The Indegene IPO is now up for subscription: Should you bid?

Indegene Ltd.’s initial public offering (IPO), which provides digital-led commercialisation services to the global life sciences industry, will be available for subscription on May 6. The three-day public auction will end on May 8. The company’s IPO plans to raise around ₹1,842 crore

Indegene IPO Review
Analysts urged investors to ‘Subscribe’ to the issue, citing the company’s strong position to gain from the predicted increase in life sciences operations expenditure. Furthermore, it has a proven track record of adding value through smart acquisitions.

“The issue is valued at a P/E (price-earnings) of 31.3 times on the upper price band based on FY24 earnings estimates, which we feel is fairly valued,” stated stockbroker BP Wealth, while recommending a ‘Subscribe’ rating for the issue.

With a global footprint and delivery hubs strategically situated throughout the world, the company provides global service to its clients. According to Anand Rathi, this allows for flexible collaboration, efficient project execution, and timely service delivery across several areas.

The brokerage believes that the company’s valuation is fair. “At the upper price band, the company is valued at a P/E of 40.6 times with a market cap of ₹10,814 crore post issue of equity shares,” the IPO noted with a ‘Subscribe’ tag.

Reliance Securities has recommended a ‘Subscribe’ rating for the issue, stating that Indegene is one of the most innovative companies in the life sciences industry, with over two decades of experience and healthcare domain expertise, as well as fit-for-purpose technology and a portfolio of solutions covering all aspects of life sciences companies’ commercial, medical, regulatory, and R&D activities.

Comparison to listed industry peers
There are no listed firms in India or globally that are comparable in size, industry, or business style to the company. As a result, the company has not supplied an industry comparison with respect to the company.

Indegene IPO pricing range

The Bengaluru-based company set a price band of ₹430-452 per share for its first public offering. Investors may bid for a minimum of 33 shares in a single lot and in multiples thereafter.

Indegene IPO GMP
Indegene Ltd. shares were trading at a nearly 58% premium in the grey market today.
However, it is vital to note that gray market premiums are only an indication of how the company’s shares are stacked on the unlisted market, and they can alter quickly.

Additional information about the Indegene IPO

The IPO involves a fresh issue of equity shares worth up to ₹760 crore and an offer-for-sale (OFS) of up to 2.34 crore equity shares aggregating ₹1,082 crore from selling shareholders at the upper end of the price range.

Existing investors CA Dawn Investments, a Carlyle group entity, Vida Trustees in its capacity as Group Life Spring’s partner, Brighton Park Capital’s entities BPC Genesis Fund I SPV Ltd and BPC Genesis Fund I-A SPV Ltd, as well as individual investors Manish Gupta, Rajesh Bhaskaran Nair, and Anita Nair, would sell shares under the OFS.

Nadathur Fareast Pte Ltd is now Indegene’s largest stakeholder, with a 23.64% stake.

A 20.42% interest in the firm is owned by CA Dawn Investments, while a 12% position is held by Brighton Park Capital.

In February 2021, Indegene received $200 million in funding from Carlyle Group and Brighton Park Capital.
Indegene IPO’s goal
The proceeds from the new issuance would be used for general corporate objectives, debt repayment, funding inorganic expansion, funding capital expenditure requirements, and payment of deferred consideration for one of the company’s previous acquisitions.

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Native American IPO BRLM

Kotak The issue’s book-running lead managers are Mahindra Capital, Citigroup Global Markets India, J P Morgan India, Nomura Financial Advisory, and Securities (India).
IPO allotment and listing date for Indigene

Refunds will start the day after May 9th, when the allocation basis is set. On May 13, Indigene shares are anticipated to list on exchanges.
Overview of the business
Indegene was established in 1998 and provides solutions to assist biopharmaceutical, emerging biotech, and medical device firms in the development, introduction, and marketing of their products as well as in maximizing sales for the duration of their life cycles.
Money
The company reported ₹241 crore in profit after taxes on ₹1,969 crore in operating revenue for the quarter that ended in December 2023.