Indegene Limited IPO Opens Today- Check the Subscription Status and Other Details
The subscription process for the Indigene IPO is set to begin on May 6, 2024 that is today, and end on May 8, 2024. The goal of this book-built offering is to generate Rs 1,841.76 crores. In the IPO, 2.39 crore shares worth a total of Rs 1,081.76 crores are up for sale in addition to a new issue of 1.68 crore shares priced at Rs 760.00 crores.
Indegene Limited is a notable entity in the life sciences sector, providing a range of services that span from research and development to management for healthcare and pharmaceutical enterprises. Founded in 1998, Indegene has established itself as a company with a global presence, headquartered in Bangalore, India.
The inception of Indegene can be traced back to the collaborative efforts of five visionaries: Anand Kiran, Dr. Sanjay Parikh, Gaurav Kapoor, Dr. Rajesh Nair, and Manish Gupta. These founders shared a common goal of creating an organization dedicated to healthcare, one that would modernize its operating practices with the evolving digital landscape.
Indegene Limited, a company specializing in solutions for the healthcare industry, has shown significant financial growth over recent years. For the fiscal year ending March 31, 2022, the company reported an income from services amounting to ₹83,670 lakhs, with a profit before tax of ₹16,989 lakhs. The profit after tax stood at ₹13,271 lakhs. The following year, the company continued its upward trajectory, with the income from services rising to ₹100,566 lakhs and a profit before tax of ₹17,661 lakhs. The profit after tax for this period was reported at ₹13,041 lakhs. These figures represent a robust financial performance, with the company's revenue from operations growing at a compound annual growth rate (CAGR) of 61% from FY2019-20 to FY2021-22. Additionally, the profit after tax increased at an 81% CAGR during the same period. Indegene's operational revenues for the financial year ending on March 31, 2023, were reported to be over ₹500 crores, indicating a continued pattern of strong sales and profitability. The company's EBITDA and net worth also saw increases of 5.45% and 22.35%, respectively, showcasing its financial stability and growth potential.
Indegene Limited IPO Subscription Status
By 11:18 AM on day one of bidding, the public issue has been subscribed 0.15 times whereas the retail portion has been booked 0.20 times. The NII portion of the public offer was booked 0.20 times.
The retail category received 28,99,809 shares against the offered 1,44,60,759 applications. Meanwhile, the QIB category received 1,386 applications against the 78,95,950 shares offered. On the other hand, Non-Institutional Investors (NII) received 12,33,507 shares against offered 61,97,468 shares.
Indegene Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: May 6, 2024 to May 8, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Monday, May 13, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹2 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹430 to ₹452 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 33 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 40,746,891 shares (aggregating up to ₹1,841.76 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 23,932,732 shares of ₹2 (aggregating up to ₹1,081.76 Cr)).
Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 75,000,000 shares (aggregating up to ₹4,275.00 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not more than 35% of the Net Issue).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not More than 50% of the Net Issue).
NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not more than 15% of the Net Issue).
Conclusion
In conclusion, the Indegene Limited IPO stands as a significant event in the life sciences commercialization services sector. With a unique business model and a virtual monopoly in its domain, Indegene has shown steady growth in revenue and profitability. The IPO, combining a fresh issue and an offer for sale, reflects the company's confidence in its future prospects and its commitment to expanding its global footprint. Investors have shown keen interest, drawn by the company's strong financials and the potential for long-term rewards. As Indegene prepares to go public, the industry watches with anticipation, recognizing the IPO as a potential benchmark for future listings in this segment.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.