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Indegene IPO to open on Monday: What GMP signals ahead of subscription?
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Indegene Ltd. has mopped up ₹548.78 crore from anchor investors on May 3, a day before the IPO opens for public bidding.
The initial share sale of Indegene Ltd., which provides digital-led commercialisation services for the life sciences industry, will open for subscription on Monday (May 6). Ahead of the IPO opening, shares of the company are trading with a premium of more than 55% in the grey market.
Indegene has mopped up ₹548.78 crore from anchor investors on May 3, a day before the issue opening.
The Bengaluru-based company has fixed a price band of ₹430-452 per share for its ₹1,842-crore IPO, which closes on May 6. Investors can make bids for 33 shares in one lot and multiples thereafter.
About 50% of the issue will be available for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
The IPO includes a fresh issue of equity shares worth up to ₹760 crore and an offer-for-sale (OFS) of up to 2.34 crore equity shares aggregating ₹1,082 crore, at the upper end of the price band, by selling shareholders.
The OFS would see sale of shares by existing investors CA Dawn Investments, a Carlyle group entity, Vida Trustees in its capacity as partner of Group Life Spring, Brighton Park Capital’s entities BPC Genesis Fund I SPV Ltd, and BPC Genesis Fund I-A SPV Ltd, and individual investors Manish Gupta, Rajesh Bhaskaran Nair, and Anita Nair.
Currently, Nadathur Fareast Pte Ltd is the biggest shareholder in Indegene with a 23.64% stake. CA Dawn Investments has a 20.42% stake, and Brighton Park Capital owns a 12% stake in the company.
Proceeds from the fresh issue would be used to pay debt, funding capital expenditure requirements, payment of deferred consideration for one of its past acquisitions, funding inorganic growth and general corporate purposes.
Indegene had raised $200 million from Carlyle Group and Brighton Park Capital in February 2021.
Founded in 1998, Indegene offers solutions that help enable biopharmaceutical, emerging biotech and medical devices companies to develop products, launch them in the market, and drive sales throughout their life cycle.
For the period ended December last year, the firm clocked revenue from operations of ₹1,969 crore and posted a profit after tax of ₹241 crore.
Kotak Mahindra Capital, Citigroup Global Markets India, J P Morgan India, Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue.
Basis of allotment will be decided on May 9 and initiation of refunds will begin the next day. Indegene shares are expected to list on exchanges on May 13.
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