Indegene IPO: Issue subscribed over 5 times on Day 2

The initial public offer (IPO) of the Bengaluru-based healthcare tech firm Indegene Ltd was booked over 5 times on the second day of the opening on Tuesday. The consolidated bid data on the market exchange NSE (National Stock Exchange) shows strong interest from non-institutional investors, with the overall quota reserved for them subscribing by 11.72 times.

The qualified institutional buyers (QIBs) category received bids for 1,27,92,615 equity shares against 78,95,950 on offer, thus subscribing 1.62 times.

In the NII quota, 7,26,42,999 equity shares were bid for against 61,97,468 on offer by the company. In the NII category, bids were placed for 5,06,96,712 shares against 41,31,646 on offer, thus subscribing 12.27 times. The NIIs quota, with a bid amount of more than ₹2 lakh up to ₹10 lakh, received bids for 2,19,46,287 shares against 20,65,822 on offer, thus subscribing 62 times.

The retail individual investors (RIIs) category was subscribed 3.06 times, as the company received bids for 4,42,51,680 equity shares against 1,44,60,759 on offer.

On Monday, Indegene said it has raised ₹548.77 crore from the anchor book after allotting 1,21,41,102 shares to 36 anchor investors at the upper price band of ₹452 per equity share with a face value of ₹2 per share. Out of the total allocation of 1.2 crore equity shares to the anchor investors, 4.8 lakh shares, or 39.58%, were allocated to 10 domestic mutual funds through a total of 18 schemes.

The healthcare tech company's ₹1,842 crore IPO opened for subscription on May 6 and will close on May 8. The tentative date for the listing of shares of Indegene on the BSE and NSE is May 13.

The offer comprises a fresh issue of equity shares worth up to ₹760 crore and an offer for sale (OFS) of up to 23,932,732 shares worth ₹1,082 crore by existing shareholders and investors.

The price band of the IPO is ₹430-452 and investors can bid for a minimum of 33 shares and in multiples thereafter. The minimum application amount for a retail investor is ₹14,916 for 33 shares or 1 lot, while the maximum is ₹193,908 for 13 lots or 429 shares.

Indegene Financials

Indegene's restated from continuing operation after tax for the nine months ended December 31, 2023, was ₹241.9 crore against ₹217.28 crore in the same period in 2022. Its profit margin in the said period dipped marginally to 12.62% against 12.98% in the year-ago period. The revenue for the said period stood at ₹1,916.61 crore against ₹1,673.89 crore in the year-ago period.

Grey market premium

In the unlisted grey market, shares of Indegene are commanding a premium of over ₹255 apiece. Considering the upper price band, it is expected that Indegene shares could list at ₹707 per share, a significant 56.4% rise from the issue price of ₹452 apiece.

Company background

The company provides digital-led commercialisation services for the life-sciences industry, including biopharmaceuticals, emerging biotech and medical devices companies, that assist them with drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and the sales and marketing of their products.