Indegene IPO - Investment Rationale, Issue Details, Financials, Key Strategies, Risks And More: Anand Rathi

Anand Rathi's IPO Report

Indigene Ltd. will launch its initial public offering on May 6. The IPO will close on May 8.

A provider of digital-led commercialisation services for the life sciences industry, including biopharmaceutical, emerging biotech and medical devices companies and the sales and marketing of their products has fixed a price band in the range between Rs 430-452 per share. The minimum order lot is 33.

The Rs 1,841.76 crore IPO consists of a mix of fresh issuance of equity shares worth Rs 760 crore and an offer-for-sale of 2,39,32,732 equity shares by the existing shareholders.

Indegene IPO allotment status is likely to get finalised on May 9.

Object of the issue

• Repayment/prepayment of indebtedness of one of Material Subsidiaries, ILSL Holdings, Inc.

• Funding the capital expenditure requirements of company and one of Material Subsidiaries, Indegene, Inc.

• General corporate purposes and inorganic growth.

Valuation and Outlook

Indegene provides services for the life sciences industry. They assist with drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales/marketing support.

The company has a proven track record of creating value through strategic acquisitions. Moreover, with a global footprint and delivery centers strategically located around the world, company offers support to clients on a global scale.

This enables flexible collaboration, efficient project execution, and timely delivery of services across different regions.

At the upper price band company is valued at P/E of 40.6 imes with a market cap of Rs 10,814 million post issue of equity shares.

We believe that valuation of the company is fairly priced and recommend a “Subscribe” rating to the IPO.

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