Indegene, a healthcare solutions firm, has announced that its initial public offering (IPO) will open for subscriptions today, with a price range of Rs 430-452 per share. The overall offering is Rs 1,841.76 crore, which includes a new issuance of Rs 760 crore and an offer to sell 2.3 crore shares for Rs 1,081.76 crore. The IPO is slated to close on May 8.
Indegene will use the proceeds from the new issue to repay debt owed by one of its subsidiaries, ILSL Holdings, finance capital expenditures for itself and another subsidiary, Indegene Inc., and allocate funds to general business requirements and future growth opportunities, including inorganic growth.
On May 3, Indegene Limited raised approximately Rs 548.77 crore from anchor investors at an upper price band of Rs 452 per equity share in preparation for its initial public offering (IPO).
Analysts believe the company’s valuation is fair, and they propose that investors subscribe to the IPO for both listing profits and long-term benefits.
Indegene provides services to the life science business. They help with medication development, clinical trials, regulatory filings, pharmacovigilance, complaint resolution, and sales and marketing assistance.
In the fiscal year 2023, Indegene reported Rs 2,306.13 crore in revenue from operations and a profit of Rs 266 crore.
Book lead managers for the business include Kotak Mahindra Capital Company, Citigroup Global Markets, J.P. Morgan India, and Nomura Financial Advisory and Securities.
Here’s what major brokerages say:
Anand Rathi: According to Anand Rathi, Indegene has long-standing ties with major biopharmaceutical businesses, including each of the world’s top 20 biopharmaceutical companies by sales in fiscal year 2023.
Because of the sticky nature of their products, recurring sales make up a significant amount of their total income. Retention rates were 122.83 percent, 159.89 percent, and 129.90 percent for fiscal years 2023, 2022, and 2021.
Strategic acquisitions have proven to be a successful way for the organization to create value. Furthermore, with a global network and distribution centers strategically situated throughout the world, the organization provides global assistance to its clients. This allows for more flexible cooperation, effective project execution, and timely service delivery across several areas, according to analysts in an IPO note.
At the higher price range, the firm is valued at a P/E of 40.6x, with a market valuation of ₹10,814 million post equity share issue. We feel the company’s valuation is fair and propose asubscribebe” rating for the IPO,” Kuber Chauhan, equities research analyst at Anand Rathi, stated in a recent report.
