Carlyle-backed Indegene sets price band of Rs 430-452 a share for IPO

The firm will raise Rs 760 crore via fresh issue. Based on the upper price band, it will raise around Rs 1081.75 crore. The total issue size will be around Rs 1842 crore.

Private equity firms Carlyle and Nadathur Fareast-backed Indegene, which provides digital-led commercialisation services for the life sciences industry, has set a price band of Rs 430-452 a share for its Rs 1,842- crore initial public offering (IPO) that opens for subscription on May 6.

The firm plans to raise Rs 760 crore through fresh issue, while holders will offer shares worth around Rs 1,081.75 crore, taking the issue size to Rs 1,842 crore.

Manish Gupta, Dr Rajesh Bhaskaran Nair, Anita Nair, Vida Trustees (Trustee of Fig Tree Trust), in their capacity as partners of Group Life Spring, BPC Genesis Fund I SPV, BPC Genesis Fund I-A SPV, and CA Dawn Investments (a Carlyle entity) are the selling shareholders in the offer for sale.

Private equity firm Nadathur Fareast Pte Ltd, owned by Infosys co-founder Nadathur S Raghavan, is the largest shareholder in Indegene with a 23.64 percent stake on a fully diluted basis, followed by global private equity firm Carlyle-backed CA Dawn Investments which holds 20.42 percent shares.

Anchor bidding will start on May 3 and the issue will close on May 8. Basis of allotment will be decided on May 9 and initiation of refunds will begin the next day. The stock is expected to list on exchanges on May 13.

The Bengaluru-based healthcare solutions provider will use Rs 391.3 crore out of the net fresh issue proceeds to repay debts of subsidiary ILSL Holdings Inc. A sum of Rs 102.9 crore will be set aside for meeting capital expenditure requirements of material subsidiary Indegene Inc and the remaining for general corporate purposes and inorganic growth.

Indegene supports biopharmaceutical, emerging biotech, and medical devices companies, with drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and the sales and marketing of their products.

As of December, it had 65 active clients, delivering solutions to them from its operation hubs located across North America, Europe, and Asia.

Kotak Mahindra Capital Company, Citigroup Global Markets India, JP Morgan India, and Nomura Financial Advisory and Securities (India) are the book-running managers to the issue, while Link Intime India is the registrar to the offer.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.