Indegene IPO Day 2: The reception to the Indegene IPO has been phenomenal in all categories; on its first day, it was fully booked. A 1.50 subscription was given to the retail investor segment, and a 4.13 subscription was given to the non-institutional investor group. 1.31 times the staff quota was booked. BSE data indicates that on the first day, the Indegene IPO subscription status was 1.67 times.
The Indegene IPO’s subscription period started on Monday, May 6, and it ends on Wednesday, May 8. The price band has been set between ₹430 and ₹452 for each equity share having a face value of ₹2. The Indegene IPO, which took place on Friday, May 3, collected ₹548.77 crore at the upper price range of ₹452 per equity share from 36 anchor investors.
Indegene IPO Day 2: In the public offering, it has set aside 15% for NII, up to 50% for QIB, and 35% for retail investors.
Indegene Limited offers digital services to the life sciences sector. They provide help with developing novel drugs, creating regulatory files, managing clinical trials, handling complaints, pharmacovigilance, and sales and marketing.
The services offered by the organization can be categorized into multiple areas, such as consulting, omnichannel activation, enterprise commercial solutions, enterprise medical solutions, and enterprise clinical solutions.
Indegene IPO Day 2: Details of Indigene IPO
The ₹1,841.76 crore Indigene IPO consists of an offer-for-sale (OFS) of 23,932,732 equity shares by the investor selling shareholder and a new issue of ₹760 crore.
LTD.; BPC Genesis Fund I SPV (up to 2,657,687 equity share); Manish Gupta (up to 1,118,596 equity share); Vida Trustees Private Limited (up to 3,600,000 equity share); Dr. Rajesh Bhaskaran Nair (up to 3,233,818 equity share); Anita Nair (up to 1,151,454 equity share); and CA Dawn Investments (up to 10,792,650 equity share) are the parties selling their holdings.
The firm intends to use the proceeds of the new issuance to fund inorganic growth, general corporate purposes, required capital expenditures for the company and one of its key subsidiaries, Indegene, Inc., as well as the prepayment or repayment of debt held by ILSL Holdings, Inc.
Nomura Financial Advisory and Securities (India) Pvt Ltd, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited, and also Kotak Mahindra Capital Company Limited are the book running lead managers of the Indigene IPO. Link Intime India Private Ltd. is the issue’s registrar.
Review of the Indigene IPO
SBI Securities’
Based on the upper price range of the post-issue capital, the brokerage values the company at an annualized FY24 P/E multiple of 30.5x. With 20 of the Top 20 biopharmaceutical companies in the world in FY23, the business has a unique business plan and cultivates strategic client partnerships. With a strong PAT CAGR of 12.7% between FY21 and FY23, the company is expected to become net debt free following the issuance. The brokerage recommends that investors SUBSCRIBE to the issue.
The Reliance Securities
The brokerage views Indgene as one of the most innovative businesses in the life sciences industry, thanks to its more than 20 years of experience, expertise in the healthcare domain, and well designed technology. Its solution portfolio covers all aspects of life sciences organizations’ operations, including R&D, medical, regulatory, and marketing.
The management is implementing a sensible strategy of revenue diversification, with a primary emphasis on exports and a high margin product mix going forward, in order to properly service their clients across the regions. The enterprise medical solutions IL worldwide delivery strategy and the highly driven talent pool backed by notable investors are responsible for a larger portion of business. The business intends to expand both naturally and artificially in the next years. Consequently, the brokerage recommends SUBSCRIBING to the journal.
Indegene IPO GMP at now
The grey market premium (GMP) for the Indigene IPO is +255. As per investorgain.com, this suggests that the Indegene IPO share price was being traded at a premium of ₹255 in the grey market.
Considering the upper end of the IPO pricing range and the current premium on the grey market, it is anticipated that Indegene shares would list at ₹707 per share, 56.42% higher than the ₹452 IPO price.
The IPO GMP is rising, and a strong listing is expected, according to the grey market activity during the last 11 days. According to investorgain.com analysts, the GMP ranges from ₹160 at the lowest to ₹266 at the most.
Investors’ willingness to pay over the issue price is shown by the “grey market premium.”
(Disclaimer: Businessuncover does not endorse the opinions or suggestions expressed above; rather, they represent the opinions of certain analysts, specialists, and broking firms. It is recommended that investors consult with qualified specialists prior to making any financial decisions.)
Also Read | Indegene IPO opens: NIIs lead bidding on Day 1 with the Public Issue fully subscribed
