Indegene IPO sails through smoothly on Day 2; oversubscribed at 7.35x led by NIIs, retail investors. Check GMP
- Indegene IPO sees strong demand on day 2 with 7.35 times subscription. Retail investors and QIBs show healthy interest. US subsidiary contributes 85% of revenue for the integrated solutions provider.
Indegene IPO subscription status: On the second day of bidding, Indegene IPO maintains its pace and navigates through unfavourable market sentiment. The initial public offer of integrated solutions provider Indegene received 7.35 times subscription on day 2, as per BSE data.
The quota for Qualified Institutional Buyers (QIBs) got subscribed 5.59 times while the portion for retail investors received 3.82 times subscription. The non institutional investors part fetched 18.03 times subscription.
According to Arun Kejriwal, the founder of Kejriwal Research and Investment Services, Indegene is a provider of integrated solutions, with its US subsidiary accounting for about 85% of the company's revenue.
While there are some comparable international firms worldwide, there isn't a peer set or equivalent company in the Indian market. Investors with a medium- to long-term perspective have an opportunity with this investment. According to Kejriwal, there may be listing pop in addition to availability given that markets are at all-time highs or thereabouts.
In the life sciences sector, the company offers digitally led commercialisation services that help biopharmaceutical, emerging biotech, and medical device companies with drug development and clinical trials, regulatory filings, pharmacovigilance and complaint handling, and product sales and marketing.
The issue, which has opened on Monday, May 6, will close on Wednesday, May 8. The IPO was subscribed 1.67 times on the first day of bidding.
Also Read: Indegene IPO: 10 key risks investors should know before subscribing to ₹1,842-crore issue
Indegene IPO subscription status live
Indegene IPO has received bids for 21,21,41,754 shares against 2,88,66,677 shares on offer, according to data from the BSE.
The retail investors' segment received bids for 5,52,61,305 shares against 1,44,60,759 shares on offer for this segment.
The NIIs portion got bids for 11,17,35,096 shares against 61,97,468 on offer for this segment.
The employee segment received bids for 9,93,069 shares against 3,12,500 shares on offer for this segment.
The QIBs segment got bids for 4,41,52,284 shares against 78,95,950 on offer for this segment.
Indegene IPO details
The ₹1,841.76 crore Indegene IPO consists of an offer-for-sale (OFS) of 23,932,732 equity shares by the investor selling shareholder, together with a fresh issue of ₹760 crore.
The parties that are selling their holdings are: Manish Gupta (up to 1,118,596 equity shares); Vida Trustees Private Limited (up to 3,600,000 equity shares); Dr. Rajesh Bhaskaran Nair (up to 3,233,818 equity shares); Anita Nair (up to 1,151,454 equity shares); BPC Genesis Fund I SPV (up to 2,657,687 equity share); Ltd.; BPC Genesis Fund I-A SPV (up to 1,378,527 equity shares); and CA Dawn Investments (up to 10,792,650 equity shares).
The net proceeds will be used by the business to support the following objectives: general corporate purposes, inorganic expansion, funding for our company's and one of its Material Subsidiaries' capital expenditure needs, Indegene, Inc; and repayment or prepayment of ILSL Holdings, Inc's debt.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited, and Nomura Financial Advisory And Securities (India) Pvt Ltd are the book running lead managers of the Indegene IPO. Link Intime India Private Ltd is the registrar for the issue.
Indegene IPO GMP today
Indegene IPO GMP or grey market premium is +240. This indicates Indegene share price were trading at a premium of ₹240 in the grey market, according to investorgain.com.
After taking into consideration the upper end of the IPO pricing range and the existing premium on the grey market, it is expected that Indegene shares will list at a price of ₹692 per share, which is 53.1% more than the IPO price of ₹452.
Grey market activity over the previous 11 sessions indicates that the IPO GMP is moving upward and that a good listing is anticipated. Analysts at investorgain.com estimate that the lowest GMP is ₹160 and the maximum GMP is ₹266, respectively.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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