Indegene IPO: Latest Subscription Status, GMP; Last Day Of Bidding, Is It Worth Buying?

Indegene Limited, digital-led commercialization services provider, has seen successful bidding from across categories, oversubscribing by 7.35 times by end of Day 2 of the bidding. High net-worth or non-institutional investors made the most bidding in Indegene, while retail and qualified institutional buyers portion also fully subscribed. The last day for bidding in Indegene IPO is on May 8, and majority of brokerages have recommended buying.

Data from BSE showed that, cumulatively, Indegene IPO received biddings of 21,21,41,754 equity shares by end of May 7th session, compared to the offered size of 2,88,66,677 equity shares.

The portion for NIIs oversubscribed by a whopping 18.03x, while retail individual investors subscribed by 3.82x, and employees reserved portion also fully subscribed by 3.18 times. QIBs portion received about 5.59x subscription.

As per Investor Gain website, Indegene IPO last GMP is Rs 255, last updated May 7th 2024 11:23 PM. With the price band of 452.00, Indegene IPO's estimated listing price is Rs 707 (cap price + today's GMP).The expected percentage gain/loss per share is 56.42%.

ffer comprises of a Fresh Issue of equity shares aggregating up to Rs 760 crore, and offer for sale up to 23,932,732 Equity Shares. The Price Band of the Offer has been fixed from Rs 430 per Equity Share to Rs 452 per Equity Share. Bids can be made for a minimum of 33 Equity Shares and in multiples of 33 Equity Shares thereafter.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers of the offer.

Should you subscribe the IPO?

Rajan Shinde, Research Analyst, Mehta Equities:

We believe Indegene ltd IPO gives investors a unique opportunity to invest in a leading provider of digital-led commercialization services tailored for the life sciences industry. We think indegene's deep domain expertise in life sciences, coupled with advanced tech solutions, optimizes sales, activates omnichannels, speeds patient recruitment, and simplifies regulatory submissions, benefiting companies across the commercialization chain. We also believe the company's investment in proprietary tools and platforms, such as "NEXT" suite, underscores their commitment to driving transformation across the commercialization lifecycle. We also think operating through two effective delivery models, Indegene is well-positioned to provide customized, enterprise-wide solutions over multi-year periods, delivering significant value and impact to their clients.

By looking at the financials the company has shown a substantial growth in revenue from operations and net profit in FY 2022 & FY2023 by 72%/39% & -12%/63%. On valuation parse at the upper band of Rs.452/-, the issue is asking for a Market Cap of Rs.10836/- Cr. Based on annualized FY 2024 earnings and fully diluted post-IPO paid-up capital, the company is asking a PE of 33.6x which seems fully priced looking at near term growth trigger. But considering its unique business model and virtual monopoly in its business that generates over 98% global revenue it seems the company may command premium valuation. Indegene successful track record of strategic acquisitions since 2005 has contributed to their growth trajectory by providing access to new technologies, markets and clients, further solidifying their position as an industry leader. Hence, considering all the parameter, we are recommending investors to "SUBSCRIBE" the issue for the long term and if we get good healthy listing gains above 25% we recommend conservative investors to book profit.

BP Wealth:

The company also has a record of sustained consolidated revenue from operation, growing at a CAGR of 54.5% during FY21-23. Going ahead, the improvement in operational performance is anticipated to be driven by strengthening their go-to-market approach through deepening relationships with existing clients, establishing new client relationships, strengthening new market segments, focusing on high-value opportunities, and scaling promising business verticals.

The issue is valued at a P/E of 31.3x on the upper price band based on FY24E earnings, which we feel is fairly valued. We, therefore, recommend a SUBSCRIBE rating for the issue.

Reliance Securities:

The management is adopting a prudent strategy of diversifying revenues with a major thrust on exports with a high margin product mix going forward and higher share of business from in enterprise medical solutions IL global delivery model and motivated talent pool supported by marquee investors helps to serve their clients effectively across the regions adopting organic and inorganic growth in the coming years. Therefore we recommend a SUBSCRIBE to the issue.

SMIFS Limited:

The issue price discounts FY24E earning at ~34x. We believe the outsourcing should services by the pharma companies should grow at a much faster rate than the pharma sector and within pharma - biopharma should continue to outpace general pharma industry growth and this alongwith debt repayment and the capex should yield very healthy growth, hence we recommend to subscribe to the issue.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.