Indegene IPO Opening with Price Band Fixed at ₹430-452 on May 6

Investors await the announcement of Indegene IPO opening as the date of subscription is being scheduled for  May 6^th. The price band of Indegene IPO price has been set at ₹ 430 to ₹ 452 with equity share and nominal value of ₹ 2. The P/E ratio based on diluted EPS is 35.92x at the floor price and 37.76x at the cap price for the fiscal year 2023.

A fresh issue of Rs 760 crore is planned to be issued by the company, whereas the share issue by the holders of the company will be around Rs 1.081.75 crore, thus increasing the overall issue size by Rs 1.842 crore.

Under the terms of the public issue, Indegene IPO news reserves a maximum of 50% shares for QIB, a minimum of 15% for NII, and a minimum of 35% for retail investors under the offer. Eligible employees bidding under the employee reservation section are eligible to receive a discount of Rs. 30 per equity share.

The floor price and cap price of Indegene IPO are 215x and 226x of the equity share's face value. The initial public offering (IPO) of Indegene will be 33 equity shares which later multiples of those equity shares.

In the field of life sciences, Indegene provides digital-led commercialization solutions that support biopharma, emerging biopharma, and medical device businesses with drug development, clinical trial, regulatory filing, pharmaco-vigilance & complaint handling, and product sales & marketing. The solutions of the company enable life sciences organizations to develop products more efficiently, effectively, and digitally, and drive sales throughout their lifecycle when they are brought to market.

Revenue from 20 customers accounted for more than 69% of the company's revenue from operations in each of the 9 months ending December 31, 2022, and 2023, as well as in the Financial Years 2022, 2023, and 2021. According to Everest Report, the company had client relationships with all 20 of the world's top 20 biopharma companies by revenue in the Financial Year 2023.

The anchor bidding will begin on May 3. The issue will end on May 8, and the basis of allotment will be determined on May 9, and the refunding will start the following day. The shares are expected to be listed on the exchanges by May 13.

About Rs 391.3 crore out of the net issue will be utilized by the company to pay off the debts of its wholly-owned subsidiary, ILSL Holdings Inc. The remaining Rs 102,9 crore will go towards covering the capital expenditure needs of material subsidiary, Indegene, Inc. The remainder will be used for general corporate and non-organic growth.

The selling shareholders of the healthcare and pharmaceutical services company include Anita Nair (1,151,454 equity shares), Manish Gupta (with 1,118,596 equity shares), Vida Trustees Private Limited (3,600,000 equity shares), BPC Genesis Fund I-A SPV (1,378,527 equity shares), CA Dawn Investments (10,792,650 equity shares), Dr. Rajesh Bhaskaran Nair (3,233,818 equity shares) and BPC Genesis Fund I SPV (2,657,687 equity share).

There are no listed companies of the same size in the healthcare and pharmaceutical industry that have a similar business model as Indegene, as stated by the Indegene's red herring prospectus (RHP).

The book running lead managers for the Indigene Initial Public Offering (IPO) are: Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JP Morgan Private Limited Nomura Financial Advisory and Securities (India) Pvt Ltd.

Previously, last year in December Indegene had 65 active clients that offered solutions to them across various countries in Asia, North America and Europe.

The issue price of Indegene IPO was Rs.452, which means that the shares are trading at the same price as the issue price. In the Indegene IPO GMP, the share price is not affected by any premium or discount as the grey market premium for Indegene IPO today, or the grey market premium was Rs.0.

Nadathur S Raghavan holds the largest number of shares and is considered one of the largest shareholders of Indegene. The co-founder of Infosys, Nadathur S Raghavan has a 23.64 percent stake. The second largest shareholder of Indegene is Carlyle-backed CA Dawn Investments. Carlyle-backed CA Dawn Investments holds with a 20.42 percent stake.

Indegene aim is to utilize the net proceeds for the purpose of funding the capital expenditure for the company infrastructure and other general purposes. Moreover, the company will use it for the repayment of ILSL Holdings, Inc. debts.

Founded in 1998, Indegene Limited is a leading provider of digital services in the life sciences sector. The company offers services in the areas of drug development, clinical trial, regulatory submission, pharmaco-vigilance, complaints handling, and sales/ marketing support. Indegene is backed by private equity firm Carlyle and private equity firm Nadathur Fareast.