Indegene IPO: 10 things to know before subscribing to the Rs 1,841-crore issue

Indegene IPO will list on BSE, NSE with a tentative listing date fixed as Monday, May 13, 2024.

Carlyle and Nadathur Fareast-backed Indegene Limited is tapping the primary market with a Rs 1,841.76 initial public offer (IPO). The offer, a mix of a fresh issue and an offer-for-sale, opens on May 6.

Here are all the key details you need to know:

1.) IPO Dates

The IPO will open for subscription on May 6, and close on May 8.

2.) Price Band

The price band for the issue has been fixed at Rs 430-452 per share. The face value of the shares is Rs 2 each.

3.) Offer Details

The offer is a mix of of fresh issue of 1.68 crore shares aggregating to Rs 760 crore and an offer for sale of 2.39 crore shares worth Rs 1,081.76 crore. Manish Gupta, 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.

4.) Objectives of the Issue

The Bengaluru-based healthcare solutions provider plans to allocate a portion of the net fresh issue proceeds for various purposes such as repaying debts owed by subsidiary ILSL Holdings Inc. Additionally, a portion will also be earmarked to meet the capital expenditure needs of another subsidiary, Indegene Inc. The remainder will be allocated for general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 33 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,190 (33 (lot size) x Rs 430 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,916.

6.) Company Profile

Founded in 1998, 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.

7.) Financials of the Company

For FY23, the company's revenue from operations stood at Rs 2,306 crore, up over 38 percent from the year-ago period when it clocked a revenue of Rs 1,665 crore. Indegene's net profit for the same stood at Rs 266, higher by 64 percent as compared with Rs 162 crore reported in the year-ago period.

8.) Lead Managers

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited, and Nomura Financial Advisory And Securities (India) Pvt Ltd are the book-running lead managers of the Indegene IPO, while Link Intime India Private Ltd is the registrar for the issue.

9.) Key Risks

i.) Its business is solely focused on the life sciences industry and a significant portion is derived from certain large clients located in North America and Europe. Any factor affecting the life sciences industry and continuing relationships with such key clients could hamper financial performance.

ii.) The company relies on sub-contractors and third-party service providers, who may not perform their obligations satisfactorily
or in compliance with the law, and Indegene may have no recourse against such sub-contractors and service providers.

iii.) Its international operations expose Indegene to complex management, legal, tax, and economic risks, and exchange rate fluctuations, which could adversely affect business, financial condition, and results of operations.

10.) Listing Date

Indegene IPO will list on BSE, and NSE with a tentative listing date fixed as May 13.