Indegene IPO Open for Subscription :The third IPO of the financial year 2025 has opened for investment today i.e. on 6 May 2024. Indegene, a company that provides digital-based commercialization services for the life sciences industry including biopharmaceutical, emerging biotech and medical device companies, has launched its IPO which will be open for investment from May 6 to May 8. The company has fixed the price band (Indegene IPO Price Band) for the IPO at Rs 430 to Rs 452. Apart from fresh issue, there is also Offer for Sale (OFS) in IPO.
The size of Indengine’s IPO is about Rs 1842 crore. The company plans to raise Rs 760 crore through fresh issue. Whereas the shareholders of the company will sell shares worth about Rs 1081.75 crore through OFS. The allotment of shares of the company will take place on 9th May. Brokerage houses are positive about this IPO. There is a craze for it in the gray market also.
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Brokerage gave investment advice
Brokerage house Reliance Securities has advised to subscribe to Indgene’s IPO. According to the brokerage, the company is one of the innovative companies in the life sciences industry with over two decades of experience. It has expertise and fit-for-purpose technology in the healthcare sector, with a portfolio of solutions covering all aspects of commercial, medical, regulatory and research and development operations of life sciences companies. The management is pursuing a prudent strategy of diversifying revenues with a high margin product mix with major emphasis on exports. In the coming years, customers across sectors will effectively adopt organic and inorganic growth.
Shivani Nyati, Head of Wealth, Swastika Investmart, says Indgene is a digitally guided commercialization services provider to the life sciences sector, catering to medical devices, pharmaceuticals and biotech enterprises and product marketing. The company has established customer relationships with each of the world’s 20 largest biopharmaceutical companies. The company’s financial performance reflects consistent growth over the last three financial years, supported by a strong customer base of 65 active customers as of December 31, 2023. Additionally, the company has a well-developed technology portfolio, which further strengthens its digital capabilities. The company has a strong market position and strong customer base. Long term investors can subscribe to this IPO.
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Indegene IPO GMP
On the day of opening of IPO, the unlisted stock of the company is trading at Rs 260 i.e. 58 percent premium in the gray market. If we look at the gray market indications, the stock may be listed at Rs 612 compared to the IPO price of Rs 452.
how much reserve for whom
In this IPO, 35 percent share is reserved for retail investors, while 50 percent share is reserved for Qualified Institutional Buyers i.e. QIB. Whereas 15 percent share is reserved for non-institutional investors i.e. NII. Retail investors can invest Rs 14,916 for at least 1 lot i.e. 33 shares (Indegene IPO Lot Size) in this IPO. Whereas one can invest Rs 193,908 for a maximum of 13 lots.
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Where will the funds be used
The proceeds from the IPO will be used for loan repayment. While some funds will be used for capital expenditure and some for general corporate purposes and inorganic growth. Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JP Morgan India Private Limited and Nomura Financial Advisory & Securities (India) Private Limited are acting as book running lead managers for Indigene IPO. Link Intime India Private Limited has been appointed as the registrar to the issue.
How are you financially?
Talking about the financials of Indengine, the company’s revenue, expenditure and PAT in the financial year 2021 were Rs 996.92 crore, Rs 768.25 crore and Rs 149.41 crore. Whereas for the financial year 2022 it was Rs 1690.50 crore, Rs 1417.10 crore and Rs 162.82 crore. Which increased to Rs 2364.10 crore, Rs 2001.05 crore and Rs 266.10 crore in financial year 2023. Whereas in the first 9 months of financial year 2024, it has been Rs 1969.75 crore, Rs 1644.64 crore and Rs 241.90 crore.
(Disclaimer: The advice for investing or selling stocks has been given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
