PE firms Carlyle, Nadathur Fareast, Brighton Park Capital-backed Indegene IPO to open on May 6

Indegene IPO to hit Dalal Street in May

Private equity firms Carlyle and Nadathur Fareast-backed Indegene, which provides digital-led commercialisation services for the life sciences industry, will launch its maiden public issue for subscription on May 6. The price band for the issue will be announced on April 29, while the likely issue size may be in the range of Rs 1,750-2,500 crore.

The IPO, which will close on May 8, is a mix of fresh issuance of equity shares worth Rs 760 crore and an offer-for-sale (OFS) of 2,39,32,732 equity shares by the existing shareholders.

Manish Gupta, Dr Rajesh Bhaskaran Nair, Anita Nair, Vida Trustees (Trustee of Fig Tree Trust) in its capacity as partner 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 OFS.

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.

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BPC Genesis Fund I SPV and BPC Genesis Fund I-A SPV, owned by Brighton Park Capital, the private equity firm based in Greenwich, collectively own 12.07 percent shares in the professionally managed company.

The Bengaluru-based company has reserved up to 50 percent of the net issue size for qualified institutional buyers (QIB), 15 percent for non-institutional investors (high-net-worth individuals), and the remaining 35 percent for retail investors.

The anchor book, up to 60 percent of the QIB portion, will be opened for a day on May 3.

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The Bengaluru-based technology-led healthcare solutions provider will utilise Rs 391.3 crore out of the net fresh issue proceeds for repaying debts of subsidiary ILSL Holdings Inc, Rs 102.9 crore for capital expenditure requirements of material subsidiary Indegene Inc, and the remaining funds 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 2023, it had 65 active clients, delivering solutions to them from its operation hubs located across North America, Europe, and Asia.

On the financials front, Indegene has recorded an 11.3 percent on-year growth in consolidated net profit at Rs 241.9 crore for nine-month ended December FY24 and during the same period, revenue from operations increased by 14.5 percent to Rs 1,916.6 crore.

Net profit for the year ended March FY23 grew by 63.4 percent to Rs 266 crore and revenue increased by 38.5 percent to Rs 2,306.1 crore compared to the previous year.

The company will finalise the basis of allotment of IPO shares by May 9 and the equity shares will be credited to demat accounts of eligible investors by May 10.

The trading in equity shares of the company will commence on the bourses with effect from May 13.

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