IPO Details
- Type: Main Board IPO
- Issue Size: ₹1841.76 Crore
- Offer: Combination of fresh issue (₹760 Crore) and Offer for Sale (OFS) (₹1,081.76 Crore)
- Price Band: ₹430 – ₹452 per share
- Minimum Order Quantity: 33 Shares
- Issue Open Date: May 6, 2024 (Today)
- Issue Close Date: May 8, 2024
- Expected Listing Date: May 13, 2024 (Tentative)
- Lead Managers: Kotak Mahindra Capital Company Limited, Axis Capital Limited, etc.
- BSE Code (to be assigned after listing): Not available yet
- NSE Code (to be assigned after listing): Not available yet
IPO Timeline
| IPO Open Date: | Monday, May 6, 2024 |
| IPO Close Date: | Wednesday, May 8, 2024 |
| Basis of Allotment: | Thursday, May 9, 2024 |
| Refunds: | Friday, May 10, 2024 |
| Credit to Demat Account: | Friday, May 10, 2024 |
| IPO Listing Date: | Monday, May 13, 2024 |
About Company
Indegene Limited provides digital-led commercialization services for the life sciences industry, including biopharmaceutical, emerging biotech, and medical device companies. Their services include drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and sales and marketing support. The company has reported revenue growth from ₹1690.50 crore in 2022 to ₹2364.10 crore in 2023.
OBJECTIVE
- Repayment/prepayment of indebtedness of one of the Material Subsidiaries, ILSL Holdings, Inc.;
- Funding the capital expenditure requirements of the Company and one of the Material Subsidiaries, Indegene, Inc.; and
- General corporate purposes and inorganic growth.
POSITIVE
- Growth potential: The life sciences industry is expected to experience significant growth in the coming years, creating a potential opportunity for Indegene.
- Digital focus: The company’s focus on digital solutions aligns with the increasing adoption of technology in the life sciences sector.
- Experienced team: Indegene has a team with experience in the life sciences industry.
- Track record of revenue growth: The company has shown consistent revenue growth in recent years.
NEGATIVE
- Valuation: Without access to the IPO prospectus, it’s difficult to determine if the offered price band reflects a fair valuation.
- Competition: The life sciences services sector is competitive, with established players and new entrants vying for market share.
- Dependence on key clients: The company’s performance may be impacted if they lose key clients.
So, how does Indegene Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 2,518.15 | 2,203.87 | 1,353.47 | 596.04 |
| Revenue | 1,969.75 | 2,364.10 | 1,690.50 | 996.92 |
| Profit After Tax | 241.90 | 266.10 | 162.82 | 149.41 |
| Net Worth | 1,327.00 | 1,063.72 | 763.90 | 324.51 |
| Reserves and Surplus | 1,282.65 | 1,019.43 | 763.55 | 324.19 |
| Total Borrowing | 399.33 | 394.34 | 18.24 | 24.76 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue Growth: Revenue has shown a steady increase year-over-year, with the most recent period (ending Dec 2023) showing a 16.2% rise compared to the previous year. This indicates business growth.
- Profitability: Profit after tax has also increased modestly (9.8%) in the recent period, demonstrating sustained profitability.
- Improving Net Worth: Net worth has increased year-over-year, suggesting an improvement in the company’s financial health.
Indegene Limited IPO Valuation :
| Earning Per Share (EPS): | ₹ 12.03 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 25.02% |
| Net Asset Value (NAV): | ₹48.10 per Equity Share |
IPO – SWOT Analysis
Strengths
- Digital Focus: Indegene’s focus on digital solutions caters to the increasing adoption of technology in the life sciences sector, potentially giving them a competitive edge.
- Experienced Team: The company has a team with experience in the life sciences industry, which can be valuable for understanding client needs and delivering effective services.
- Track Record of Growth: Indegene has shown consistent revenue growth in recent years, indicating a positive business trajectory.
- Growth Potential: The life sciences industry is expected to experience significant growth in the coming years, creating a potential tailwind for Indegene’s services.
Weaknesses
- Valuation: Without access to the IPO prospectus, it’s difficult to determine if the offered price band reflects a fair valuation of the company.
- Dependence on Key Clients: The company’s performance may be significantly impacted if they lose major clients, highlighting a potential client concentration risk.
- Limited Track Record as Independent Entity: As a private company until now, Indegene’s public track record as an independent entity is limited, making it challenging to assess its long-term financial sustainability.pen_spark
Opportunities
- Expanding Service Offerings: Indegene can develop new service offerings or expand into related areas within the life sciences sector to capture a larger market share.
- Geographic Expansion: Entering new geographic markets can open up new customer segments and growth opportunities.
- Strategic Partnerships: Partnering with other companies in the life sciences industry can enhance capabilities and expand reach.
- Acquisitions: Acquisitions can be a way to gain access to new technologies, talent, and client bases.pen_spark
Threats
- Competition: The life sciences services sector is competitive, with established players and new entrants vying for market share. Aggressive competition can put pressure on pricing and margins. Regulatory Changes: Changes in government regulations or healthcare policies could impact the life sciences industry and potentially affect Indegene’s business. Technological Disruptions: Rapid advancements in technology can make existing solutions obsolete, requiring continuous investments in innovation to stay competitive. Economic Slowdown: An economic slowdown could decrease spending on research and development in the life sciences industry, impacting Indegene’s client base and revenue.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Indegene Limited IPO :
Peers:
- IQVIA Holdings Inc.: A leading global provider of contract research organization (CRO) services and commercialization solutions for the life sciences industry.
- Syneos Health Inc.: Another major CRO player offering clinical trial services, commercialization solutions, and consulting services to the life sciences industry.
- Parexel International Corporation: A global CRO with a strong presence in clinical research services and a growing portfolio of commercialization solutions.
Considerations for Competitive Analysis
- Service Overlap: Analyze the specific services offered by each company compared to Indegene. Do they offer a broader range or specialize in certain areas?
- Geographic Reach: Compare the geographic footprint of each company. Does Indegene have a regional focus or a more global presence compared to its peers?
- Client Base: Understand the type of clients each company caters to. Does Indegene focus on specific segments within the life sciences industry?
- Financial Performance: If financial data for the competitors is publicly available, compare revenue growth, profitability margins, and debt levels to assess their relative financial health.
- Digital Focus: Analyze how each company leverages technology in their service offerings. Does Indegene’s focus on digital solutions differentiate them from competitors?
Indegene Limited IPO GMP
- Grey market premium as on 05-05-2024 = Rs 246 / Share
Disclaimer:
- IPO Grey Market Premium (Indegene Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Indegene Limited IPO
🔴 Live Subscription Status 🔴
08/05/2024 05:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 80,94,069 | 0.05 | 5.45 | 192.72 |
| Non Institutional Investors(NIIs) | 60,70,552 | 4.24 | 18.44 | 55.82 |
| Retail Individual Investors(RIIs) | 1,41,64,620 | 1.55 | 3.94 | 7.78 |
| Employee | 2,96,209 | 1.40 | 3.40 | 6.57 |
| Total | 2,86,25,450 | 1.69 | 7.44 | 70.25 |
FINAL TAKEAWAY
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