Indegene IPO: Public Issue Subscribed 1.67x on Day 1

by | May 7, 2024 | 0 comments

Indegene Ltd’s initial public offering (IPO) opened for subscription today and has been met with a positive response. This Rs 1,842 crore IPO is a mix of fresh issue and offer-for-sale by existing shareholders. The price band for the issue is fixed at Rs 430-452 per share.

In 2023, Indegene had revenues of INR 23.06 billion, an increase of more than 38 percent from the previous year’s INR 16.65 billion.

The initial public offering (IPO) of Indegene Ltd began on May 6 and received bids for 75.34 lakh equity shares against the total issue size of 2.29 crore shares, data from stock exchanges showed.

Non-institutional investors led the bidding with applications for 44 percent of their reserved portion, while retail investors bid for more than a third (32 percent). Employees subscribed to around three-fifths (43 percent) of the quota earmarked for them.

Qualified institutional buyers, who are yet to subscribe to the issue, account for the remaining half of the book.

Indegene will use proceeds worth INR 18.42 billion from fresh issues towards debt repayment at subsidiary ILSL Holdings Inc., capex requirement at another unit Indegene Inc., and other general corporate purposes. The IPO is valued at INR 18.42 billion through a fresh issue and offer-for-sale by existing shareholders, with a price band set at INR 430-452 per share.

Ahead of IPO opening, Indegene raised about INR 5.49 billion ($73 million) from anchor investors on May 3. Some of them include Smallcap World Fund Inc., Abu Dhabi Investment Authority, American Funds Insurance Series – Global Balanced Risk Control Fund and Kotak Flexicap Fund.

In grey market trading, shares changed hands at more than a half premium over the IPO price band in both unofficial listings — before official subscription opens till listing day — indicating potential listing gains close to $10 or $714 per share vs IPO price band Rs430-Rs452.

Established in 1998, Bengaluru-based Indegene supports biopharmaceutical firms and medical devices companies in drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management and sales and marketing of their products.

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