Table of Contents
Indegene Limited IPO Review: Indegene Limited will launch an IPO of INR 1,841.76 crores, which will include a fresh issue of shares worth INR 760 crores and an offer to sell 1,081.76 crore shares. The company’s goals include debt management, project financing, and pursuing expansion possibilities for long-term development.
Indegene Limited IPO – Important Dates
| Indegene Limited IPO Date | May 6, 2024 to May 8, 2024 |
| Indegene Limited IPO Listing Date | May 13, 2024 |
| Indegene Limited IPO Price | INR 430-452 per share |
| Indegene Limited IPO Lot Size | 33 shares |
| Indegene Limited IPO Total Issue Size | INR 1,841.76 crores |
| Indegene Limited IPO Basis of Allotment | May 9, 2024 |
| Indegene Limited IPO Initiation of Refunds | May 10, 2024 |
| Indegene Limited IPO Credit of Shares to Demat | May 10, 2024 |
| Indegene Limited IPO Issue Type | Book Built Issue IPO |
| Indegene Limited IPO Listing At | BSE, NSE |
Indegene Limited IPO – Company Profile
Indegene Limited provides digital-led commercialization services for the life sciences industry, including drug development, regulatory compliance, sales, and marketing. They improve overall operational efficiency and effectiveness by leveraging experience and technology. The managing director of the company is Mr. Manish Gupta.
Despite personnel shortages and margin challenges, life science companies embrace digital innovation. They seek partners with subject expertise to improve operational efficiency and navigate changing industry difficulties such as medicine pricing and loss of exclusivity.
Their expertise is in transforming clinical data into structured information and analytics-ready datasets. The company uses AI-powered solutions to improve productivity, speed to market, and regulatory compliance throughout the life sciences commercialization process, integrating with third-party platforms.
Indegene Limited IPO Financials
Indegene’s financial analysis shows varied results. Revenue rose initially but then fell, while equity and assets increased. However, falling EPS, RoNW, and current ratios raise worries among potential IPO investors.
- Revenue Trend: Revenue rose from ₹16,646.09 million in March 2022 to ₹23,061.33 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 19,166.11 million, falling behind the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have consistently increased over time, indicating future growth and expansion.
- Profitability: The profit after tax (PAT) climbed from ₹1,628.18 million in March 2022 to ₹2,419.02 million in December 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): The diluted EPS has risen from ₹7.46 in March 2022 to ₹10.84 in December 2023, indicating better earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has decreased from 21.57% to 18.23%, suggesting a fall in the company’s capacity to create returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Indegene Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in Million) | 16,646.09 | 23,061.33 | 19,166.11 |
| Equity (₹ in Million) | 7,639.00 | 10,637.22 | 13,270.01 |
| Expenses (₹ in Million) | 14,171.02 | 20,010.51 | 16,446.42 |
| Profit and Loss After Tax (₹ in Million) | 1,628.18 | 2,660.99 | 2,419.02 |
| RoNW (%) | 21.57 | 25.02 | 18.23 |
| Diluted EPS only (₹) | 7.46 | 11.97 | 10.84 |
| NAV per Equity Share (₹) | 34.80 | 48.10 | 59.86 |
| Total Assets (in million) | 13,534.69 | 22,038.66 | 25,181.47 |
| Total Liabilities (in million) | 5,895.69 | 11,401.44 | 11,911.46 |
Indegene Limited IPO Peer Comparison
There are no listed companies in India or globally that are comparable in size, industry, or business model to Indegene Limited. As a result, they have not supplied an industry comparison for their company.
Indegene Limited IPO Objective
The primary goal of Indegene Limited is to manage ILSL Holdings, Inc.’s debt obligations and fund capital expenditures for itself and its subsidiary, Indegene, Inc., while maintaining financial stability and growth.
- Repayment/prepayment of indebtedness of one of their Material Subsidiaries, ILSL Holdings, Inc.: The Company anticipates to use INR 3,913.35 million from the Net Proceeds to repay/prepay the Term Loan, improving the debt-equity ratio, promoting business expansion, and increasing the potential to raise resources for future growth.
- Funding the capital expenditure requirements of the Company and one of its Material Subsidiaries, Indegene, Inc.: Over the next three fiscal years, the Company intends to spend INR 102.916 from Net Proceeds on capital expenditures for infrastructure upgrades and computer equipment to support its growing talent pool.
- General corporate purposes and inorganic growth: The remaining funds will be used for general corporate purposes, including prospective inorganic growth efforts such as acquisitions, joint ventures, and strategic investments that are consistent with the company’s growth strategies and business objectives.
Indegene Limited IPO Risks And Challenges
Indegene Limited’s risk factors include industry growth, client revenue, which influences R&D spending, and reliance on critical client relationships. Revenue models and industry trends are also complex, which increases risk.
- Their solutions are in high demand in the biopharmaceutical business, which is driven by industry growth, outsourcing tendencies, and the pace of digitization. Client revenue influences R&D spending, which affects their services, whilst financial pressures may change demand.
- Their company is centered on the life sciences industry, primarily in North America and Europe. They rely largely on industry dynamics and critical client relationships to preserve profitability and growth.
- While navigating the difficulties of the life sciences industry, their company focuses in serving diverse segments of their clients’ organizations. Their revenue models, which include resource utilization and fixed-price contracts, may appear complex when compared to typical processes.
Indegene Limited IPO – Industry & Market Potential
In 2023, biopharmaceuticals and medical devices sales reached ₹138.3 trillion, with biopharmaceuticals accounting for 69% (₹95.4 trillion). By 2026, sales are expected to reach ₹163.5 trillion, with biopharmaceuticals accounting for 69%.
Spending on life sciences activities increased by 6.7% CAGR from 2020 to 2022, reaching ₹12.0 trillion in 2022. By 2026, they are projected to reach ₹15.5 trillion, owing to an aging population and disease incidence, despite pandemic-related increases.
Life sciences encounter hurdles in applying digital technology and processing large amounts of data. Service providers provide AI, ML, and NLP solutions to help with data integration and analysis, allowing for actionable insights and overcoming industry issues.
Indegene Limited IPO – Type of Offer
Indegene Limited contains a fresh issue of INR 760 crores and an offer by existing shareholders to sell 1,081.76 crore shares.
- Fresh Issue: The company plans to raise funds by issuing additional shares, with the goal of collecting INR 760 crore. The corporation intends to use it to manage debt, finance initiatives, and seek expansion possibilities for long-term development.
- Offer for sale: Indegene Limited plans to sell 1,081.76 crore existing shares. The following are the details of the current shareholder who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Manish Gupta | 1,118,596 |
| Dr. Rajesh Bhaskaran Nair | 3,233,818 |
| Anita Nair | 1,151,454 |
Indegene Ltd IPO Allotment Structure
Indegene Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII), per SEBI norms.
● Qualified Institutional Buyers (QIB): According to SEBI norms, 50% of the shares offered in the IPO would be reserved for Qualified Institutional Buyers. These include banks, mutual funds, and insurance businesses.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allocated to retail individual investors. These individual investors apply for shares worth less than Rs. 2 lakh.
Indegene Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 6 May to 8 May 2024 | 452 | 252 | 704 (55.75%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
