The Indegene Ltd IPO, which opened for subscription on May 6, saw strong investor interest, with 26 percent of the total issue size subscribed during the early hours of the first day of bidding. Investors bid for 75.34 lakh equity shares against the total issue size of 2.29 crore shares, according to stock exchange data.
Non-institutional investors led the bidding, purchasing 44 percent of the reserved portion, while retail investors bought 32 percent of the portion allocated to them. The employee portion saw a subscription of 43 percent. However, qualified institutional buyers (QIBs) were yet to subscribe to the issue.
Indegene plans to utilize the proceeds from the fresh issue for repaying debts of its subsidiary ILSL Holdings Inc, meeting capital expenditure requirements of another subsidiary, Indegene Inc, and for general corporate purposes. The Rs 1,842-crore IPO consists of a mix of fresh issue and offer for sale by existing shareholders, with a price band set at Rs 430-452 per share.
Ahead of the IPO, Indegene secured Rs 548.78 crore from anchor investors on May 3, with nearly 30 percent of the IPO booked. Notable investors included Smallcap World Fund Inc, Abu Dhabi Investment Authority, American Funds Insurance, Custody Bank of Japan, Destinations International Equity Fund, East Bridge Capital Master Fund, and Copthall Mauritius Investment.
In the grey market, shares were trading at a premium of over 57 percent above the issue price, indicating a potential listing price close to Rs 714. The grey market functions unofficially, where shares trade before the offer opens for subscription until the listing day.
Established in 1998, Indegene provides support to biopharmaceutical, emerging biotech, and medical devices companies in various aspects of drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales and marketing.
In FY23, Indegene reported a revenue of Rs 2,306 crore, marking a growth of over 38 percent compared to the previous year’s Rs 1,665 crore. The company also recorded a surge in net profit to Rs 266 crore in FY23, up 64 percent from the previous year.
