Indegene Limited IPO Review
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's journey began with a clear purpose: to modernize healthcare operations by leveraging deep medical science expertise and fit-for-purpose technology. This vision was not only forward-thinking but also necessary, given the rapid advancements in technology and the increasing need for efficient healthcare solutions.
Over the years, Indegene has grown significantly, both in scale and capabilities. The company has been recognized for its contributions to the life sciences industry and has earned the trust of the top 20 global pharmaceutical companies. With over 5,000 team members spread across 17 offices worldwide, Indegene's impact on the healthcare sector is substantial.
Indegene's business model is centered around providing digital-first, life sciences commercialization services. The company assists biopharmaceutical, emerging biotech, and medical device companies in developing products, launching them in the market, and driving sales through their lifecycle in an effective, efficient, and modern manner. This approach has enabled Indegene to carve out a niche for itself in the industry, offering a suite of solutions that cover commercial, medical, regulatory, and R&D operations for life sciences companies.
Indegene Limited stands as a testament to innovation and dedication in the life sciences sector. From its origins in Bangalore to its current status as a global player, the company has remained true to its founding purpose of modernizing healthcare operations. With a strong leadership team, a clear vision, and a commitment to excellence, Indegene is poised to continue making significant contributions to the healthcare industry for years to come.
Competitive Strengths
Indegene Limited, established in 1998, has carved a niche for itself as a specialized commercialization service provider to the life sciences industry. The company's competitive strengths lie in its comprehensive suite of services that cater to biopharmaceutical, emerging biotech, and medical device companies. Indegene's offerings span across the life sciences value chain, including drug development, clinical trials, regulatory processes, pharmacovigilance, complaints management, and sales and marketing support.
Revenue, Sales, and Profit
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.
Distribution Network and Geographical Reach
Indegene Limited, a digital-led commercialization services provider to the life sciences sector, has established a significant presence in the global market. The company's distribution network is intricately designed to cater to the life sciences industry, including biopharmaceutical, emerging biotech, and medical devices companies. Indegene's solutions encompass a range of services from drug development and clinical trials to regulatory submissions and pharmacovigilance. Their geographical reach extends to providing last-mile promotion of biopharma products and medical devices through multiple channels, ensuring a robust presence in key markets necessary for life sciences operations. With a focus on digital transformation, Indegene assists customers in optimizing their digital marketing operations and customer data management, which is pivotal in today's data-driven market landscape. The company's growth potential and geographical expansion are reflected in their plans for an IPO, indicating a strategic move to further solidify their market position and expand its distribution network. Indegene's commitment to digitalization has been a cornerstone of its strategy, enabling it to provide efficient and effective services to its clients worldwide. Their integrated market data approach has also allowed them to achieve competitive insights faster, which is crucial for maintaining a strong distribution network and expanding their geographical reach.
Unique Features
Indegene Limited is a company that stands out in the life sciences commercialization sector with its digital-first approach. The company's unique features include its healthcare domain expertise, fit-for-purpose technology, and an agile operating model. These elements combine to provide a range of solutions aimed at delivering personalized, scalable, and omnichannel experiences for patients and physicians. Indegene's commitment to innovation is also evident in its partnerships with leading organizations to integrate and contextualize modern technology, making innovative healthcare more accessible and affordable. The company's social impact extends to education and healthcare, contributing expertise, time, and funds to accelerate the mission of leading organizations in these fields. Indegene's unique positioning as a digital-led commercialization service provider in the Life Science Industry, coupled with its steady growth and virtual monopoly, makes it a distinctive entity in its sector.
Investment in Research and Development
Indegene Limited, a life sciences commercialization service provider, has been proactive in investing in research and development (R&D) to bolster its offerings across the life sciences value chain. This includes drug development, clinical trials, regulatory processes, and sales and marketing support. In February 2021, Indegene raised $200 million from investment firms Carlyle Group and Brighton Park Capital to accelerate its mergers and acquisitions (M&A) and global expansion plans. These funds are indicative of the company's commitment to enhancing its R&D capabilities, which is crucial for maintaining its competitive edge in the highly dynamic life sciences sector. Moreover, the company's upcoming initial public offering (IPO) is expected to further strengthen its financial position, potentially allowing for increased investment in R&D activities. The focus on R&D is not only a strategic move to stay ahead in the market but also reflects Indegene's dedication to innovation and improving healthcare outcomes. The company's investment strategy in R&D, particularly through funding and expansion, underscores its role as a key player in the life sciences industry's push toward digital transformation and advanced healthcare solutions.
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).
Competitors of Indegene Limited
Indegene Limited, a company known for its innovative solutions in the healthcare and pharmaceutical sectors, operates in a competitive and dynamic environment. The company faces competition from various other firms that offer similar services in healthcare consulting, technology, and research & development.
One of the notable competitors is Amagi Media Labs Private Limited, established in 2008 in Karnataka, which has carved out a niche in media technology with a significant paid-up capital of INR 44.45 cr. Another competitor is Ecron Acunova Limited, formed in 2004, also based in Karnataka, specializing in clinical research with a paid-up capital of INR 42.98 cr.
Research Triangle Institute Global India Private Limited, with its inception in 2014 in Delhi, competes in the research and development sector, boasting a paid-up capital of INR 41.42 cr. Ruchi Hi-Rich Seeds Private Limited, established in 2014 in Maharashtra, operates in the agricultural biotechnology space with a paid-up capital of INR 40.81 cr.
Palsana Enviro Protection Limited, dating back to 1999 in Gujarat, is another competitor with a focus on environmental protection and a paid-up capital of INR 48.17 cr. Beloorbayir Biotech Limited, formed in 2005 in Karnataka, competes in the biotechnology industry with a paid-up capital of INR 39.94 cr.
Other competitors include Oat & IIL India Laboratories Private Limited, Stamlo Industries Limited, Lalitha PVS Institute of Medical Sciences Private Limited, and Sun Pharma Advanced Research Company Limited, each with their own specialization and market presence.
Moreover, Indegene's competitive landscape extends beyond these companies. Indegene's top competitors include Axtria, Inovalon, Welltok, Value Edge, Decision Resources Group, DYE, Eliza Corporation, IQVIA, Optymyze, HP, Sparta Systems, Medidata, Capgemini, Infor, and EtQ, which are involved in various aspects of healthcare technology and consulting services.
The competition in this sector is not just about the financial muscle but also about innovation, quality of service, and the ability to adapt to the rapidly changing healthcare landscape. Indegene and its competitors are continuously striving to improve their offerings and expand their market reach to meet the evolving needs of healthcare providers and patients.
Understanding the competitive dynamics is crucial for stakeholders, investors, and clients who are looking to engage with companies like Indegene Limited. It helps in making informed decisions and strategizing for future growth and partnerships.
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.
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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.
FAQs
Q: What is an IPO?
An Initial Public Offering (IPO) is a process through which a privately held company offers its shares to the public for the first time and becomes a publicly traded company.
Q: How can I apply for an IPO?
You can apply for an IPO through various methods:
ASBA (Application Supported by Blocked Amount): In this method, your application money remains in your bank account until the basis of allotment is finalized.
UPI (Unified Payment Interface): You can authorize the blocking of funds in your bank account using UPI while applying for an IPO.
Q: What is ASBA?
ASBA stands for Application Supported by Blocked Amount. It allows your application money to be blocked in your bank account during the IPO bidding process. You continue to receive interest on the blocked amount.
Q: What is the difference between book building and a normal public issue?
Book building is a process where demand for securities is elicited and the price is assessed based on investor bids. In a normal public issue, the price is fixed by the issuer.
Q: Can I make payments through UPI for IPOs?
Yes, you can use UPI as a payment method for IPOs. The UPI platform blocks the funds for IPO applications after you approve the fund block mandate request.
Q: What is the minimum order quantity for an IPO?
The minimum number of shares you can apply for in an IPO is known as the minimum order quantity. It varies for each IPO.
Q: What is the cut-off price in an IPO?
The cut-off price is the price at which you bid for shares without specifying a particular price. It allows you to participate in the IPO without specifying a specific bid price.
Q: Can I revise my bids during the IPO process?
Yes, you can revise your bids multiple times before the IPO bidding period ends.
Q: Which banks offer the ASBA facility for IPOs?
Several banks, known as Self Certified Syndicate Banks (SCSBs), offer the ASBA facility. Some examples include HDFC Bank, ICICI Bank, Axis Bank, and SBI.
Q: How do I find IPO mandates on UPI apps?
You can check the list of UPI handles supported for IPO payments on the National Payments Corporation of India (NPCI) website. These handles allow you to apply for IPOs using UPI.