On Monday at 10 am, Indegene Ltd. exceeded its issue price of Rs.452, surging nearly 46% on Bombay Stock Exchange to Rs.659.70 per share and Rs.655 a piece on National Stock Exchange.
The Initial Public Offer (IPO) of Indegene was subscribed over 70 times on May 8, last week’s closing day of bidding. The retail category saw a subscription of 7.86 times, while the Qualified Institutional Buyers (QIB) category led with 192.72 times, and the Non-Institutional Investors (NII) category reached 55.91 times subscription.
The funds raised through the fresh issue will be used to pay debt, fund capital expenditure requirements, payment of deferred consideration for one of its past acquisitions, fund inorganic growth and general corporate purposes.
Additionally, the company has declared that the IPO earnings will be used to fund its subsidiary companies Medsn, MedCases, Aptilon, Skura Technologies, Encima, Wincere and DT associates.
About Indegene
Indegene markets itself as a “life-sciences commercialisation company” with digital advancements. It assists biopharmaceutical, emerging biotech and medical devices companies to develop products, combining healthcare expertise and technology, and market them.
The company was founded in 1998 and established in 2005, with first operations set up in the United States acquiring Medsn – a pharma sales training company. Its present Chairman and CEO is Manish Gupta, a founding member.
So far, the company’s global network has expanded across Asia, Europe, North America and the island country, Japan. Its headquarters is established in Bangalore, India. In 2021, the Economic Times recognised it as one the best brands for the year.
Its financial prospects
Unlike tech giants like Meta and Alphabet, Indegene releases financial results annually. The company had generated a revenue worth $290 million in the FY23. Highlighting Indegene’s financial performance, SBI Securities noted a strong profit-after-tax compound annual growth rate (CAGR) of 12.7% between FY21 and FY23.
Given its unique business model and positive growth in the company’s previous years’ performance, analysts speculate a sustained growth and value creation for its stakeholders.
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Should you buy its shares ?
Market analysts are quite bullish with Indegene’s company performance in the past few years. They believe that it has provided investors with a one of a kind opportunity to invest in a leading provider of digital-led commercialisation.
Sharing his opinion on Indegene stocks, Prashant Tapse, Asymmetric volatility phenomenon researcher at Mehta Equities agreed upon the healthy listing of Indegene stocks given its tailored services for life sciences industry with expert level knowledge.
Lending their expert advice to interested investors, Mehta Equities said, “Post-listing, we see the valuations are getting stretched and considering market selloff mood and other parameters, we are recommending conservative investors to book profits, while risk-taking investors can continue holding for long term.”
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, also expressed his optimism regarding Indegene’s performance and said, “Indegene Limited stands out as a unique player in digital-led commercialization services within the Life Science Industry, boasting a virtual monopoly that generates over 98% of its global revenue.”
“Given the promising outlook after profit-booking, investors may consider allocating funds for medium to long-term rewards,” he suggested.
A glance at its shares price
Once the Company released its IPO, its stock price hit a bumper price at Rs.659.70 per share as of Monday morning on BSE. But the stock failed to sustain such a high premium as profit-booking triggered soon, subsequently the shares price plunged 13.5% to close at Rs.570.65 per share as of 4:20 pm.
