Indegene IPO listing: Shares make strong debut; list at 46% premium

Shares of Indegene, a technology-led healthcare solutions provider, made a stellar debut on the stock exchanges on Monday, with the share price listing at 46% premium, in an otherwise weak broader market. The stock of Indegene debuted at ₹659.70 on the BSE, against the issue price of ₹452 per equity share. On the NSE, the shares opened 45% over the IPO price at ₹655 apiece.

Post listing, the stock dropped to ₹575 level, while the market capitalisation slipped to ₹14,206 crore. Meanwhile, the BSE Sensex was trading lower by 578 points, or 0.8%, at 72,086, and the NSE was down 183 points, or 0.83%, at 21,871 level.

The debut of Indegene was below Street expectations as the stock was commanding a grey market premium (GMP) of ₹307 over the issue price in the unofficial market, signaling listing to be around ₹759 per share, up 68%. In the last one week, Indegene GMP increased significantly by 20% from ₹255 on May 6.

“Indegene, the provider of digital-led commercialisation services for the life sciences industry, defied market negativity with a spectacular debut on the stock exchanges…This impressive performance comes on the back of a strong investor response, with the IPO receiving an overwhelming 70 times subscription,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

“Long term investors are suggested to hold their position by keeping stop loss and continue monitoring the company's performance and market conditions,” Nyati adds.

Indegene IPO subscribed 70 times

The ₹1,842-crore IPO of the Bengaluru-based healthcare tech firm received an overwhelming response from investors, with the issue subscribing 70.3 times as it received bids for 201.24 crore shares worth ₹90,964.93 crore against the issue size of 2.86 crore stocks.

The quota reserved for qualified institutional buyers (QIOB) was booked 192.72 times, followed by a 55.91 subscription in the non-institutional investors’ (NII) category. In the retail investor segment, the issue received 7.86 times bids, while quota reserved for employees was booked 6.62 times. The company had reserved half of the issue for QIBs, 35% for retail investors, and remaining 10% for NIIs. The issue also included a reservation of equity shares aggregating up to ₹12.5 crore for eligible employees, offered at a discount of ₹30 per equity share.

The IPO comprises a fresh issue of equity shares worth up to ₹760 crore and an offer for sale (OFS) of shares worth ₹1,082 crore by existing shareholders and investors. The price band of the IPO was ₹430-452 and lot size was 33 shares and in multiples thereafter.

The company intends to use capital raised from the issuance of fresh equities to fund the repayment of debts of one of its material subsidiaries, ILSL Holdings, Inc. A part of the capital will be used for funding the capital expenditure requirements of the company and one of its subsidiaries, Indegene, Inc., as well as to meet general corporate purposes and inorganic growth.

Established in 1998, Indegene provides digital services for the life sciences industry for the past 25 years. It is a ‘digital-first’ commercialisation firm, empowering biopharmaceutical, emerging biotech, and medical devices companies to develop and launch products, helping them with clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales & marketing support.

Ahead of the IPO, the healthcare tech firm raised ₹548.77 crore from anchor book by allotting 1.21 crore equity shares to 36 anchor investors at the upper price band of ₹452 per share. The anchor book saw participation from a wide variety of marquee investors, including Capital Group, one of the world's largest investment management firms, Fidelity Investments, Loomis Sayles & Company, Jupiter Asset Management, Abu Dhabi Investment Authority, Custody Bank of Japan, WhiteOak Capital Management, and Copthall Mauritius Investment Limited. Out of the total allocation of 1.2 crore equity shares to the anchor investors, 4.8 lakh shares, or 39.58%, were allocated to 10 domestic mutual funds through a total of 18 schemes. 

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