Indegene IPO: Indegene’s IPO has received a robust response from investors, particularly high net-worth individuals (HNIs), with subscriptions reaching 1.67 times within the first two days of bidding. This surge in interest spans across all investor categories, signaling a strong market appetite.
Priced between Rs 430 to Rs 452 per share, Indegene aims to raise a substantial sum of Rs 1,841.76 crore through its IPO. This includes a fresh share sale of Rs 760 crore and an offer-for-sale (OFS) of 2,39,32,732 equity shares. Investors can apply for a minimum of 33 shares, with multiples thereafter, adding to the accessibility of participation.
The demand is evident, with bids reaching 3.57 times the offered shares by midday on Tuesday, May 07. By this point, investors had made bids for 10,29,93,264 equity shares, showcasing strong investor confidence in Indegene’s prospects. With the bidding process set to conclude on Wednesday, May 08, all eyes are on the final subscription figures, which are poised to reflect the market’s enthusiasm for this IPO.
Indegene’s IPO has garnered impressive subscription figures across various investor segments, highlighting widespread interest.2.62 times as many retail investors subscribed. their allocated quota, while non-institutional investors showed even greater enthusiasm, oversubscribing their portion by 8.53 times. Qualified institutional bidders (QIBs) also displayed substantial interest, with bids reaching 1.46 times their reservation. Additionally, employees showed confidence in the company’s prospects, subscribing 2.35 times their set quota.
Indegene, known for its digital services tailored for the life sciences industry, offers a comprehensive suite of solutions spanning drug development, clinical trials, regulatory submissions, pharmacovigilance, and more. Its offerings include enterprise commercial solutions, omnichannel activation, enterprise medical solutions, clinical solutions, and consultancy services.
The grey market premium for Indegene has remained robust since the opening day of bidding. Recent reports indicate a premium of Rs 255-260, signaling a potential listing pop of approximately 55-56% for investors. Before the bidding, the grey market premium stood at around Rs 240, underscoring sustained market confidence in Indegene’s IPO.
Brokerage firms are predominantly optimistic about Indegene’s IPO, lauding its unique business model, robust financial performance, promising growth opportunities, and enduring partnerships with key players in the biopharmaceutical sector. Nonetheless, they express reservations regarding subsidiary revenue dependence, potential client attrition, increased competition, and potentially inflated valuations.
Indegene is committed to enhancing efficiency, efficacy, and quality across various facets of the research and commercialization processes within the life sciences industry. Mahesh M Ojha, AVP – Research at Hensex Securities, notes the company’s extensive relationships with premier biopharmaceutical firms, including the world’s top 20 pharmaceutical companies. Ojha emphasizes Indegene’s efforts to expand its client portfolio by targeting companies in the medical devices and emerging biotech sectors, leveraging its existing capabilities, expertise, and experience.
While acknowledging these strengths, Ojha suggests that Indegene is particularly attractive for thematic investors focusing on the pharmaceutical sector, recommending a ‘subscribe’ rating for those with a long-term investment horizon.
Indegene successfully secured Rs 548.78 crore from anchor investors ahead of its IPO, offering them 1,21,41,102 equity shares at Rs 452 per share. The IPO has allocated 50% of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will receive 15% and retail investors will be allocated 35%.
Investors contemplating participation in Indegene’s IPO are advised to adopt a medium to long-term perspective, according to Ishnu Kant Upadhyay, Assistant Vice President – Research & Advisory at Master Capital Services. He emphasizes the company’s promising growth prospects within the life sciences sector, where quality and transparent communication are increasingly prioritized.
Upadhyay highlights Indegene’s strengths, including its established relationships with major global pharmaceutical companies, digital-first approach, and global delivery model. These factors, coupled with the importance of execution and service delivery, form a solid foundation for sustained growth in the foreseeable future.
Indegene reported a net profit of Rs 241.90 crore on a revenue of Rs 1,969.75 crore for the nine months ending on December 31, 2023. In the preceding fiscal year ending on March 31, 2023, the company achieved a net profit of Rs 266.10 crore, with a revenue of Rs 2,364.10 crore.
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The Indegene IPO is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, and Nomura Financial Advisory and Securities (India) as the book-running lead managers, Link Intime India has been appointed as the registrar for the issue. The company’s shares are set to be listed on both the BSE and NSE on Monday, May 13.
Disclaimer: Stockeasynow provides stock market news for informational purposes only and should not be construed as investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.
