Indegene Shares Drop After Strong Listing On Large Trades
Indegene Ltd. shares dropped nearly 20% from their opening price, but still were 26% above their issue price.
Shares of Indegene Ltd. which debuted on the stock exchanges on Monday, tanked nearly 20% from its opening price amid a fall in the benchmark indices. The company also witnessed multiple block deals after its listing.
The digital-led commercialisation services provider's shares opened at 659.70 apiece on the BSE, a premium of 45.95% over the issue price of Rs 452 per share. On the National Stock Exchange, the shares opened at Rs 655 apiece, a premium of 44.91% over the IPO price.
The shares were still trading about 26% above their issue price as of 11:36 a.m.
At least 13.1 crore shares changed hands in multiple trades at an average price of Rs 589 apiece, according to Bloomberg. The buyers and sellers have not been confirmed immediately.
The initial public offer of Indegene, which ran from May 6 to May 8, was subscribed 69.91 times, with institutional investors placing bids for 197.55 times the shares reserved for them. The baskets for non-institutional investors and retail investors were subscribed 55.07 times and 7.95 times, respectively. The portion reserved for employees was subscribed 6.48 times.
Indegene IPO was a mix of fresh issue of equity shares worth Rs 760 crore and an offer for sale of 2.39 crore shares at a price band of Rs 430-452 per share. The company raised Rs 548 crore from anchor investors ahead of the IPO.
The stock fell as much as 19.5% during the day to Rs 527.1 apiece on the NSE. It was trading 16% lower at Rs 576.1 apiece, compared to a 0.42% advance in the benchmark Nifty as of 11:34 a.m.
Use Of Proceeds
The company will use funds from its maiden share sale to pay back debt of its material subsidiary ILSL Holdings, Inc. A portion of the proceeds will go to funding capital expenditure requirements of the company and another material subsidiary, Indegene, Inc.
Business
Indegene provides digital-led commercialisation services for the life sciences industry, including biopharmaceutical, emerging biotech and medical device companies. These systems are used for drug development and clinical trials, regulatory submissions, pharmacovigilance and complaint management, and the sales and marketing of their products.
By December quarter of the last fiscal, the company had reported net profit of Rs 241.9 crore and a revenue of Rs 1,916 crore, according to the red herring prospectus for the IPO.
