Indegene's initial public offering (IPO) received strong response from investors on the second day of the bidding process. After 1.67 times subscription, thanks to the buying interest from all categories of investors, especially HNI investors. Bengaluru-based Indegene sells its shares in the price range of Rs 430 to Rs 452 apiece. Investors can apply for at least 33 stocks and multiples thereafter. The company is seeking to raise Rs 1,841.76 crore through an initial public offering comprising a new share sale of Rs 760 crore and an offer for sale (OFS) of 2,39,32,732 shares. According to the data, investors placed bids for 10,29,93,264 shares, which is 3.57 times as compared to the 2,88,66,677 shares offered for subscription till 12.35 pm on Tuesday, May 7. The three-day bidding issue ends on Wednesday, May 8th. The portion for retail investors was subscribed 2.62 times while the portion reserved for non-institutional investors was subscribed 8.53 times. However, the quota earmarked for qualified institutional bidders (QIBs) was bid at 1.46 times their reservation while the staff quota was booked at 2.35 times at the same time. Indegene has provided digital services to the life sciences industry. The company supports drug development, clinical trials, regulatory submissions, pharmacovigilance, complaint management and more. It offers commercial solutions for businesses; Omnichannel-enabled enterprise medical solutions; clinical solutions and consulting services for companies. Indegene's gray market premium remained stable after the first day of the tender. It was last reported that the company fetched a premium of Rs 255-260 in the unofficial market, indicating a stock market gain of around 55-56 percent for investors. However, the premium in the gray market was around Rs 240 before the tender for the issue opened. Brokerage firms are mostly positive on the issue, citing its niche business model, strong financials, robust growth prospects and long-term relationship with leading biopharma players. However, the subsidiaries' dependence on revenue, loss of customers, increased competition and high valuations are causing some concern for the company. Indegene's mission is to advance efficiency, effectiveness and quality in various aspects of life science companies' R&D and commercialization processes. “They have long-standing relationships with major biopharmaceutical companies, including each of the top 20 pharmaceutical companies in the world,” said Mahesh M Ojha, AVP – Research at Hensex Securities. “The company is also committed to adding more medical device and emerging biotech companies to its customer base by leveraging existing capabilities, expertise and experience. However, the company is a good choice for thematic investors focused on the pharmaceutical sector,” he added, suggesting a “Subscribe” rating for a long-term perspective. Ahead of its IPO, Indegene raised a total of Rs 548.78 crore from anchor investors by allotting them 1,21,41,102 shares at Rs 452 apiece. It has reserved 50 percent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) are to be allotted 15 percent of the net offer. 35 percent of the shares are reserved for private investors. Investors considering participating in Indegene's IPO should look at it in the medium to long term as the company offers solid growth prospects while placing more emphasis on quality and transparent communication in the life sciences sector, said Ishnu Kant Upadhyay, deputy Vice President of Research and Advisory at Master Capital Services: “While execution and service delivery remain critical factors, Indegene’s established relationships with leading global pharmaceutical companies, digital-first approach and global delivery model provide a solid foundation for sustainable growth in the coming years “, he added. Indegene reported a net profit of Rs 241.90 crore on revenue of Rs 1,969.75 crore for the nine months ended December 31, 2023. For the year ended March 31, 2023, the company's net profit stood at Rs 266.10 crore with a turnover of Rs 2,364.10 crore. Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India and Nomura Financial Advisory and Securities (India) are the underwriters of the Indegene IPO while Link Intime India is the registrar for the issue. The company is scheduled to list on both BSE and NSE on May 13, Monday.
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