Indegene prepares for ₹2,500 cr IPO

Indegene Pvt Ltd, a technology-led healthcare solutions provider, is planning an initial public offering (IPO) of ₹2,500 crore in an offer for sale (OFS), two people aware of the matter said.

Private equity firm Carlyle, an investor in Indegene, is expected to sell its stake in the IPO, the people said on the condition of anonymity. The company has appointed JP Morgan India Pvt. Ltd and Kotak Mahindra Capital Co. Ltd to manage the share sale, they said.

Queries emailed to the company and the bankers remained unanswered.

Several companies are considering IPOs, riding the current optimism in the market. DreamFolks Services shares witnessed a strong listing on Tuesday at ₹505, a 55% premium to the issue price of ₹326, while the Tamilnad Mercantile Bank IPO closed on Tuesday with a subscription of 2.86 times.

“Most IPOs come at a premium valuation, as in many cases it is the promoter selling stake via OFS or private equity exit. So, they seek high valuations, which is possible only during good secondary market sentiments,” said market analyst Parthiv Shah, who heads a wealth management firm.

Founded in 1998, Bengaluru-based Indegene is engaged in research and experimental development on natural sciences and engineering. It has a global presence in the US, the UK, Europe, China, Japan, and India. The company provides solutions such as product commercialization, enterprise marketing and customer experience, data and analytics, medical transformation, and learning and development solutions. It mainly caters to biotech companies and medical device manufacturers.

Several leading global healthcare organizations rely on Indegene to deliver effective and efficient clinical, medical and commercial outcomes every day, according to the company’s official website.

The company said it clocked $223.8 million in FY22, up from $90.8 million in FY20.

Profit after tax as of March 2021 was ₹133 crore while the total income of the company was ₹535 crore, above the numbers of March 2020, according to VCCEdge.

A banker at a state-owned lender said he expects many companies to file draft IPO papers by the third quarter. He also expects several listings. LiveMint