Independent IPO: The IPO of Indegene Ltd, which provides digital services to the life sciences industry, opened for public subscription on May 6 and the issue was fully subscribed. Till 4:19 pm on the first day of bidding on Monday, the Rs 1,842-crore IPO received a total of 1.52 times bids for 4,33,76,949 shares against 2,86,25,450 shares offered.
The retail category was fully subscribed and has received 1.44 times subscription so far by the end of the first day of bidding, while the Non-Institutional Investor (NII) category was fully subscribed within hours of its opening and has received 3.44 times subscription so far. 68 times received subscription. The qualified institutional buyers (QIBs) have only a 3 percent subscription.
Indegene's IPO will remain open for public subscription until May 8. The share allotment is expected to be completed on May 9, while the listing will take place on May 13 on both the BSE and NSE.
The price range for the IPO has been set at Rs 430-452 per share.
Indigenous IPO GMP today
According to market observers, unlisted shares of Indegene Ltd are trading Rs 262 higher than their issue price in the gray market. The gray market premium or GMP of Rs 262 means that the gray market expects a listing gain of 57.96 percent from the public issue. The GMP is based on market sentiment and is constantly changing.
“Gray market premium” indicates investors’ willingness to pay more than the issue price.
Indegene IPO: Should you apply?
Assignment of the “Apply” rating for the IPO, brokerage Nazi swastika The statement said: “Indegene’s financial performance reflects steady growth over the past three financial years, supported by a robust customer base of 65 active customers as of December 31, 2023. In addition, the company has a well-developed technology portfolio that “continues to consolidate its digital capabilities.”
While the P/E valuation of 37.79x appears reasonable, the lack of directly comparable listed competitors limits a definitive assessment. Considering Indegene's unique market position, strong growth trajectory and established customer base, “we recommend this IPO to investors to achieve an IPO and benefit in the long term,” it said.
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Another brokerage company Ventura Also recommended to subscribe to the IPO. It states: “With a workforce of 5,181 employees and a global presence across North America, Europe and Asia, the company is well positioned to meet the evolving needs of its customers.” Additionally, Indegene has carved out a unique market niche that generates almost 98% of global sales and has strong growth potential with an expected average annual growth rate of 6.5% in the coming years. Overall, with its mix of industry expertise and technological expertise, Indegene is positioning itself as an important partner for life science companies that want to be successful in an increasingly digitalized landscape.”
SBI securities also recommended that investors “subscribe” to Indegene’s IPO.
“The company (Indegene) is valued at an annualized FY24 P/E multiple of 30.5x based on the upper price range of the post-issuance capital. The company has a unique business model with strategic customer relationships
with 20 of the top 20 global biopharmaceutical companies in FY23. The company posted a strong PAT CAGR of 12.7% between FY21 and FY23 and is expected to be net debt-free post-issuance. “We recommend investors to SUBSCRIBE to the issue,” SBI Securities said.
About Indegene's IPO
The IPO comprises a fresh issue of 16.8 million shares worth Rs 760 crore and 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 investment amount required for retail investors is Rs 14,916. The minimum lot size investment for small NII is 14 lots (462 shares) which is Rs 2,08,824 and for bNII it is 68 lots (2,244 shares) which is Rs 10,14,288.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JP Morgan India Private Limited and Nomura Financial Advisory And Securities (India) Pvt Ltd are the underwriters of the Indegene IPO while Link Intime India Private Ltd is acting as the registrar for the issue.
About Indegene Limited
Founded in 1998, Indegene Limited provides digital services to the life sciences industry. It supports drug development, clinical trials, regulatory submissions, pharmacovigilance, complaint management and sales/marketing support.
The company offers services in four categories: commercial solutions for enterprises, omnichannel activation, medical solutions for enterprises and
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clinical solutions and consulting services for companies.
Sales increased by 39.85 percent and profit after tax (PAT) increased by 63.43 percent in the 2022/23 financial year.
Mohammad Haris
Haris is Deputy News Editor (Business) at news18.com. He writes on various topics
first published: May 06, 2024, 10:42 IST
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