Indegene Limited IPO Review –
Indegene Limited is coming up with its IPO which is set to open from 6th May 2024 to 8th May 2024. This article will analyze the financials , strengths and weaknesses of the Indegene Limited IPO. Keep scrolling below to read more!
Company Overview –
Company was established in 1988, and it offers digital-led commercialization services for the life sciences industry, consisting of bio-pharmaceutical, emerging biotech, and medical devices companies.
Indegene helps them with drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and the sales and marketing of their products.
These solutions enable life sciences companies to develop and launch products in the market, and drive sales in more effective, efficient and modern manner.
Company offers services in four business verticals :
- Enterprise Commercial Solutions
- Omnichannel Activation
- Enterprise Medical Solutions
- Enterprise Clinical Solutions
The Company has established relationships with all of the 20 largest bio-pharmaceutical companies in the world by revenue for FY 2023.
As of December 31, 2023, company has a total of 65 active clients with offices in India as well as North America, Europe and Asia.
IPO Synopsis-
Indegene Limited IPO is set to be open from 6th May 2024 to 8th May 2024, offering 40,746,891 shares. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs.1,841.76 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 6th May 2024 |
| Closing Date | 8th May 2024 |
| Lot Size | 33 Shares |
| Face Value | Rs. 2 |
| IPO Size | Rs. 1841.76 Cr |
| Fresh Issue | Rs. 760 Cr |
| IPO Price Range | Rs. 430 – 452 |
| Min. Investment | Rs. 14,916 |
| Offer for Sale (OFS) | Rs. 1081.76 Cr |
| Basis of Allotment | 9th May 2024 |
| Refunds | 10th May 2024 |
| Listing Date | 13th May 2024 |
Book Running Lead Managers –
Kotak Mahindra Capital Company Limited
Citigroup Global Markets India Pvt. Ltd.
J.P. Morgan India Pvt. Ltd.
- Nomura Financial Advisory
Securities (India) Pvt. Ltd.
Registrar to the offer –
Link Intime India Pvt. Ltd.
The Objective Of The Issue –
- Rs. 391.33 Cr of the net proceeds will be utilized towards the repay or prepay of debt of the subsidiary of Indegene, ILSL Holdings, Inc.
- Rs. 102.916 Cr of the net proceeds will be utilized for funding the working expenditure requirements of the Company & its material subsidiary Indegene Inc.
- The remaining amount will be utilized for general corporate purposes and to fund inorganic growth.
Financial Status –
Indegene Limited reported a revenue of 2306 Cr, in FY 23, which increased by 39% from Rs 1665 Cr in FY 22. Company has scaling its revenue consistently from FY 21 at the rate of 55% CAGR.
Net Profits grew at a rate of 63% from Rs 163 Cr in FY 22 to Rs. 266 Cr in FY 23. Since FY 21 , net profit remained at 33% CAGR.
Company’s EBIDTA margins have contracted from 27% in FY 21 to Just 19.7% in FY 23.
Company has seen growth in total assets, and total revenue. But, the profit after tax and total borrowing has increased.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 2306.13 | 1664.60 | 966.27 |
| EBIDTA | 454.18 | 265.91 | 263.96 |
| PAT | 266.09 | 162.81 | 185.68 |
| Total Assets | 2203.86 | 1353.46 | 596.04 |
| Total Borrowings | 1140.14 | 589.56 | 262.95 |
Peers of Indegene Limited IPO
Since no companies are listed in India or globally of comparable size, belonging to the same industry, and possessing a similar business model as Indegene. We cannot do a comparative analysis with listed peers.
IPOs Strengths –
- Domain expertise in Healthcare.
It has robust digital capabilities and an in-house developed technology portfolio.
A track record of establishing long-standing client relationships.
Global Presence, has 17 offices located across North America, Europe and Asia.
An experienced management team.
Company has a track record of creating value through acquisitions.
IPOs Weakness –
Industry Related Risk : The company is solely focused on the life sciences industry leaves it vulnerable to adverse effects from industry-related factors.
The majority of companies revenue comes from its subsidiaries.
Highly Competitive Industry : The life sciences operations industry is highly competitive nature , which makes future prospects hard to anticipate.
Compliance with data protection and other laws is necessary due to restrictions on the collection, use, and disclosure of sensitive information, including health data.
- Geographical Risk : Majority of the Company’s revenues from clients, which are located in North America & Europe. Hence, the business & profitability is majorly dependent on the performance of the respective geographies.
Conclusion
The company holds a monopoly in the digital-led commercialization services for the life sciences industry, and has consistently generated consistent revenue. It derives over 98% global revenue. The upcoming IPO represents a promising opportunity for investors growing life sciences industry but comes with its fair share of risks and challenges.
Experienced investors can apply for the IPO after carefully evaluating all factors to maximize their gains.
