Indegene Attracts Rs 549 Cr from Anchor Investors Pre-IPO

Healthcare technology firm Indegene Ltd has successfully garnered Rs 549 crore from anchor investors in anticipation of its forthcoming initial public offering (IPO). The company disclosed the allocation of 1.21 crore equity shares to 36 funds at a rate of Rs 452 each, marking the upper limit of the IPO's price range. This development was officially announced through a circular on the Bombay Stock Exchange's website.

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The anchor investor segment witnessed robust participation from a diverse group of investors. Notable names include Capital Group, Fidelity Investments, and Jupiter Asset Management, alongside sovereign wealth funds such as the Abu Dhabi Investment Authority. Prominent Indian mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, and Nippon India Mutual Fund also marked their presence, alongside investment arms of leading insurance companies like Aditya Birla Sun Life Insurance Company and Bajaj Allianz Life Insurance Company.

The IPO is set to open to the public on May 6 and will conclude on May 8, with a price band fixed between Rs 430 and Rs 452 per share. Indegene's IPO structure includes a fresh issue of equity shares aiming to raise up to Rs 760 crore and an Offer For Sale (OFS) component that could aggregate up to Rs 1,082 crore at the upper end of the price band. The total size of the IPO could reach Rs 1,842 crore.

The OFS will enable current investors such as CA Dawn Investments (a Carlyle group entity), Vida Trustees, Brighton Park Capital's entities, and individual shareholders Manish Gupta, Rajesh Bhaskaran Nair, and Anita Nair to sell their stakes. Nadathur Fareast Pte Ltd currently holds the largest share in Indegene with a 23.64% stake, followed by CA Dawn Investments and Brighton Park Capital with significant holdings.

Proceeds from the fresh issue are earmarked for various strategic initiatives including debt repayment, capital expenditure, funding inorganic growth opportunities, and covering general corporate expenses. This move follows a substantial USD 200 million investment received from Carlyle Group and Brighton Park Capital in February 2021.

Founded in 1998, Indegene has carved a niche for itself by providing comprehensive solutions that support biopharmaceutical companies, emerging biotech firms, and medical device manufacturers through product development, market launch, and lifecycle management. The book-running lead managers for this IPO include Kotak Mahindra Capital, Citigroup Global Markets India, J.P. Morgan India, and Nomura Financial Advisory and Securities India.