Indegene IPO opened for subscription on May 6, was subscribed 1.67 times in the evening of day 1 of bidding. Investors bid for 4.81 crore equity shares against the total issue size of 2.88 crore shares, stock exchange data showed.
Non-institutional investors were at forefront of bidding, buying 4.14 times of the reserved portion. Retail investors purchased 1.5 times of the portion set aside for them. The employee portion was bought 1.31 times.
Meanwhile, QIBs or qualified institutional buyers were yet to warm to the issue, subscribing a marginal 5 percent of their reserved portion.
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Indegene will use the fresh issue proceeds for repaying debts of subsidiary ILSL Holdings Inc, and capital expenditure requirements another subsidiary Indegene Inc. Further, the remaining fresh issue money will be used for general corporate purposes. The Rs 1,842-crore IPO is a mix of fresh issue and offer for sale by existing shareholders. The price band for the issue is Rs 430-452 per share.
On May 3, ahead of its IPO, Indegene, backed by private equity firms Carlyle and Nadathur Fareast, secured Rs 548.78 crore from anchor investors, with nearly 30 percent of the IPO booked. Notable investors such as Smallcap World Fund Inc, Abu Dhabi Investment Authority, American Funds Insurance, Custody Bank of Japan, Destinations International Equity Fund, East Bridge Capital Master Fund, and Copthall Mauritius Investment participated.
In the grey market, shares were trading with a premium of over 57 percent over the issue price. This suggests that the potential listing price of the company could be close to Rs 714. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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.
In FY23, Indegene recorded a revenue of Rs 2,306 crore, marking a increase of over 38 percent compared to the previous year's Rs 1,665 crore. The company also reported a surge in net profit to Rs 266 crore in FY23, up 64 percent from the previous year.
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