Health tech firm Indegene to raise ₹1,842 cr via IPO; sets price band at ₹430-452

Healthcare tech firm Indegene Limited on Monday unveiled the price band for its initial public offering (IPO) at ₹430-452 per share, looking to raise ₹1,842 crore at the upper end of the issue price. The three-day public issue of the Bengaluru-based firm will begin on May 6, while the anchor book will open for a day on May 3, 2024, one day prior to bid opening. The tentative date for the listing of shares of Indegene on the BSE and NSE is May 13.

The offer comprises a fresh issue of equity shares worth up to ₹760 crore and an offer for sale (OFS) of up to 23,932,732 shares worth ₹1,082 crore by existing shareholders and investors. Among individual investors, Manish Gupta, co-founder and CEO, will offload up to 1,118,596 equity shares, followed by 3,233,818 shares by Dr. Rajesh Bhaskaran Nair and up to 1,151,454 shares by Anita Nair.

Among 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, will also pare their stakes via the IPO route.

Investors can bid for a minimum of 33 shares and in multiples thereafter. The minimum application amount for a retail investor is ₹14,916 for 33 shares or 1 lot, while the maximum is ₹193,908 for 13 lots or 429 shares.

As per the document filed with the SEBI, the company has reserved half of the issue for qualified institutional buyers (QIBs), up to 35% for retail investors, and remaining 10% for non institutional investors (NIIs). The offer includes a reservation of equity shares aggregating up to ₹12.5 crore for eligible employees, which will be offered at a discount of ₹30 per equity share.

Indegene intends to use the proceeds of the fresh issue for funding 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.

Founded in 1998, Indegene has been providing 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.

In the financial year 2022-23, Indegene posted 39.85% growth in revenue at ₹2,364.10 crore as compared to ₹1,690.50 crore in the previous fiscal. The profit after tax (PAT) rose by 63.43% to ₹266.10 from ₹162.82 crore in FY22. For the 9-month ended December 31, 2023, the company reported revenue and profit at ₹1,969.75 and ₹241.90, respectively.

In an interaction with Fortune India, Manish Gupta, Chairman and CEO, Indegene says, the company generates 66% of its revenues from the United States; 30% from Europe; and remaining 4% from the rest of the world, which include China, Japan, various other markets including India.

“Our revenue is split between 4 segments - enterprise commercial solutions, omnichannel activation solutions, sales and marketing. Enterprise commercial solutions contribute around 59% of our revenue, followed by 12% by omnichannel activation,” says Gupta.

“We work with all the top 20 global pharmaceutical companies. The company generates around 69% of its total revenue from these top-tier clients since 2020,” he adds.

He further says that Indegene plays a key role in helping global life sciences companies (medical device and biotech) accelerate digital transformation, working at the intersection of deep medical and technology expertise. “We have around 5,200 employees and 20% of these come from a medical background. These are medical doctors, PHD's, pharmacologists who are working hand in hand with data scientists, data engineer, software engineers, and analysts.”

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 to the offer.