Indegene Listing: Stock expected to list at 40-65% premium over IPO price on May 13

Indegene IPO: The price band was fixed at Rs 430-452 per share.

The Indegene stock is expected to make a decent debut on the bourses on May 13. Analysts expect the shares to list at a 40-65 percent premium over the IPO price, somewhere between Rs 700 and Rs 760.

Ahead of the listing, the shares were commanding a 61 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

Also Read: Indegene IPO: 10 things to know

“Considering the strong subscription demand on the last day of the issue with QIB demand raised to 192x gives good room for healthy listing gain in the range of 40-50 percent and even above against the issue price,” said Prashanth Tapse, Research Analyst, Sr VP Research at Mehta Equities.

The issue was subscribed 69.91 times as investors bought 201.81 crore equity shares against the 2.88 crore shares on offer between May 6 and May 8. Non-institutional investors (high net worth individuals) were at the forefront, picking 55.07 times the reserved portion, followed by qualified institutional buyers or QIBs who bought 197.55 times the part set aside for them. The retail investor portion was booked 7.95 times.

“We anticipate a listing price range of approximately Rs 740-760 per share, potentially yielding a listing gain of around 65 percent,” said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.

The Rs 1,841.76-crore public offer was a mix of a fresh issue of shares worth Rs 760 crore and an offer-for-sale of 2.39 crore shares worth Rs 1,081.76 crore. The price band was fixed at Rs 430-452 per share.

“We expect shares to list at around Rs 700 implying an upside of about 55 percent. Indegene is a provider of digital-led commercialization services for the life sciences industry and we expect the company’s strong digital capabilities and in-house developed technology portfolio to propel growth,” said Prathamesh Masdekar, Research Analyst, StoxBox.

Also Read: Indegene IPO: Institutional investors invest Rs 549 crore via anchor book

Indegene helps pharma companies with drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and sales and marketing of their products.

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