Indegene
Book Building issueMainboard₹1,842 Cr issue
+45.95%
Listing gain over issue price
Issue size
₹1,842 Cr
1 lot at cut-off
₹14,916
Lot size
33shares
Open
06 May 2024
Close
08 May 2024
Allotment
09 May 2024
Listing
13 May 2024
Listing performance
Issue price
₹452
Listed at
₹659.70
Listing-day close
₹570.90
Latest price
₹571.90
Close on 23 Oct 2026
Listing gain
+45.95%
Return since issue
+26.53%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 May 2024 – 08 May 2024
- Listing date
- 13 May 2024
- Face value
- ₹2 per share
- Issue price
- ₹452 per share
- Lot size
- 33 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,842 Cr
- Market cap at offer price
- ₹10,814 Cr
- Promoter holding
- 30.71% → 26.76% pre-issue → post-issue
- ISIN
- INE065X01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- Aspen Block G4, 3 rd Floor, Manyata Embassy, Business Park, Outer Ring Road, Nagawara, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,21,41,102 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 33 shares per lot, in multiples, at ₹452
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 33 | ₹14,916 |
| Retail (max) | 13 | 429 | ₹1,93,908 |
| S-HNI (min) | 14 | 462 | ₹2,08,824 |
| S-HNI (max) | 67 | 2,211 | ₹9,99,372 |
| B-HNI (min) | 68 | 2,244 | ₹10,14,288 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,21,41,102
Anchor portion
₹549 Cr
at ₹452 per share
Valuation and performance
Valuation at offer price
₹452 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.96 | 13.48 |
| P/E (×) | 37.79 | 33.53 |
| Price to book (×) | 7.55 | — |
| Market cap | — | ₹10,814 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 18.23%
- Debt / equity
- 0.30
- PAT margin
- 12.62%
- NAV per share
- ₹59.86
- Price to book
- 7.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Indegene
Indegene Limited is a professional services company incorporated in 1998 that offers digital-led commercialization solutions to the life sciences industry. The company was initially incorporated as 'Indegene Lifesystems Private Limited' in Ahmedabad, Gujarat, and has since undergone multiple name changes and office relocations, finally becoming 'Indegene Limited' and converting to a public limited company in November 2022. The company combines over two decades of healthcare domain expertise with technology platforms to provide solutions across clinical trials, regulatory and safety operations, product launches, and sales and marketing. As of December 31, 2023, Indegene had 65 active clients served from six operation hubs and 17 offices across North America, Europe, and Asia. The company's revenue model primarily consists of resource utilization contracts, fixed-price project engagements, and outcome-based arrangements. The majority of revenues (79.56% in the nine months ended December 31, 2023) are derived from subsidiaries, particularly Indegene, Inc., with significant exposure to North American and European markets.
Company Analysis
from RHPIndegene provides digital-led commercialization services for the life sciences industry, spanning biopharmaceutical, biotech, and medical devices companies.
Indegene Limited is a professional services company incorporated in 1998 that offers digital-led commercialization solutions to the life sciences industry. The company was initially incorporated as 'Indegene Lifesystems Private Limited' in Ahmedabad, Gujarat, and has since undergone multiple name changes and office relocations, finally becoming 'Indegene Limited' and converting to a public limited company in November 2022. The company combines over two decades of healthcare domain expertise with technology platforms to provide solutions across clinical trials, regulatory and safety operations, product launches, and sales and marketing. As of December 31, 2023, Indegene had 65 active clients served from six operation hubs and 17 offices across North America, Europe, and Asia. The company's revenue model primarily consists of resource utilization contracts, fixed-price project engagements, and outcome-based arrangements. The majority of revenues (79.56% in the nine months ended December 31, 2023) are derived from subsidiaries, particularly Indegene, Inc., with significant exposure to North American and European markets.
BiopharmaceuticalBiotechMedical devicesLife sciences operations
Objects of the Issue
- Repayment/prepayment of indebtedness of one of our Material Subsidiaries, ILSL Holdings, Inc. ₹3,913.35 million p.17
- Funding the capital expenditure requirements of our Company and one of our Material Subsidiaries, Indegene, Inc. ₹1,029.16 million p.17
- General corporate purposes and inorganic growth p.17
- Repayment/prepayment of indebtedness of one of our Material Subsidiaries, ILSL Holdings, Inc. p.43
- Funding capital expenditure requirements of our Company and one of our Material Subsidiaries, Indegene, Inc. p.60
- General corporate purposes and inorganic growth p.60
- Repayment/prepayment of indebtedness of one of our Material Subsidiaries, ILSL Holdings, Inc. ₹3,913.35 million p.106
- Funding the capital expenditure requirements of our Company and one of our Material Subsidiaries, Indegene, Inc. ₹1,029.16 million p.109
- General corporate purposes and inorganic growth p.104
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹7,600 million
- Offer for Sale
- Up to 23,932,732 Equity Shares aggregating up to ₹[●] million
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹2 each
Business Model
Indegene earns revenue through three primary models: (1) resource utilization model where clients are charged based on the number of employees assigned to an engagement or hours spent, with rates agreed at work order execution; (2) fixed price/unitized billing model where the company charges a fixed fee based on estimated project costs; and (3) outcome-based model for certain Omnichannel Activation solutions where fees are linked to factors such as HCP engagement impact of sales and marketing efforts. The company operates through subsidiaries, with approximately 79.56% of revenues in the nine months ended December 31, 2023 coming from Indegene, Inc.
Business Segments
Assists clients' drug discovery and clinical trial operations
Assists clients' digital marketing operations
Assists clients' regulatory and medical operations
Assists clients in the last-mile promotion of biopharmaceutical products and medical devices to HCPs across multiple channels
Enterprise Medical Solutions segment provides medical information and support services
Enterprise Commercial Solutions segment provides commercial intelligence and support services
Omnichannel Activation Solutions provides direct engagement with healthcare professionals
Provides solutions for commercial operations of life sciences companies including sales and marketing support, market access, and customer relationship management
Provides omnichannel engagement solutions for healthcare professionals and patients in the life sciences industry
Provides medical affairs, regulatory, and clinical solutions for life sciences companies including drug development and regulatory submissions
Assists life sciences companies with their digital marketing operations, creating customized marketing plans and campaigns, expanding reach to healthcare professionals (HCPs), providing insights on HCP preferences, and consolidating promotional and educational content development and design and execution of marketing campaigns directed at HCPs and patients using digital communication channels. Includes digital content factory, campaign design and execution, web and digital portal design, patient services, and analytics.
Helps life sciences companies leverage a digital-first approach for optimizing the last-mile promotion of biopharmaceutical products and medical devices to HCPs across multiple channels including emails, virtual sales representatives, social media and other digital platforms. Seeks to achieve the same outcome as traditional medical representatives at higher efficiencies and reduced costs. Through the NEXT HCP Journey Optimization platform, assists with customer segmentation and channel optimization activities.
Establishes centers of excellence (CoEs) to consolidate large scale regulatory and medical operations. Includes writing medical content, regulatory submissions, product labels and medical information; reviewing medical communications for regulatory compliance and ethical practices; pharmacovigilance services; and conducting real-world evidence (RWE) based medical research to support market access and pricing strategies. Offered through proprietary NLP-based and Gen AI-based tools.
Helps drive efficiencies in drug discovery and clinical trial operations including digitally-enabled patient recruitment, clinical data management, regulatory submissions support, and real-world evidence generation. Consultancy services provided through subsidiary DT Associates Limited under the 'DT Consulting' brand help life sciences companies with digital transformation efforts.
Supports healthcare clients with medical affairs and commercial operations services
Provides commercial support to pharmaceutical and healthcare companies
Delivers customer engagement and activation services
Comprises of consultancy and clinical business
Assists life sciences companies with digital marketing operations, creating customized marketing plans and campaigns, expanding reach to healthcare professionals, and providing insights on HCP preferences. Leverages proprietary NLP and Gen AI based tools for reduction in dependence on manpower, efficiency and regulatory compliance.
Helps life sciences companies leverage a 'digital first' approach for optimizing last-mile promotion of biopharmaceutical products and medical devices to HCPs across multiple channels including emails, virtual sales representatives, social media and digital platforms. Delivers 'Digital Rep Equivalence' through the NEXT HCP Journey Optimization platform. Includes services through subsidiary Cult Health for marketing strategies, creative design and marketing content.
Establishes Centers of Excellence to consolidate large scale regulatory and medical operations for clients. Provides services including medical content writing, regulatory submissions, product labels, pharmacovigilance services, and real-world evidence based medical research. Utilizes proprietary NLP-based and Gen AI-based tools customized for medical information to improve quality, ensure compliance and achieve scalability.
Includes Enterprise Clinical Solutions and consultancy services. Enterprise Clinical Solutions help drive efficiencies in drug discovery and clinical trial operations through digitally-enabled patient recruitment, clinical data management and regulatory submission assistance using real-world data. Consultancy services provided through subsidiary DT Associates Limited under the 'DT Consulting' brand focus on digital transformation and customer experience.
SWOT Analysis
Strengths
- • Two decades of healthcare domain expertise and proprietary technology platforms(p.17)
- • Comprehensive portfolio spanning clinical, regulatory, medical, commercial and R&D operations(p.17)
- • Professionally managed company without identifiable promoter(p.1)
- • Diversified geographic footprint with 17 offices across multiple continents(p.17)
- • Strong profitability with 18.23% return on net worth(p.19)
- • Minimal bad debt history with strong payment collection(p.42)
- • Large client base of established biopharmaceutical companies with low insolvency risk(p.42)
- • Strong historical revenue growth trajectory(p.44)
- • Established relationships with top 20 global biopharmaceutical companies(p.115)
- • Deep healthcare domain expertise among delivery staff(p.115)
- • Proprietary digital technology and AI capabilities(p.115)
- • Global delivery model across multiple geographies(p.115)
- • Strong track record of value creation through acquisitions(p.115)
- • Recognition as employer of choice for women in India(p.115)
- • Deep healthcare domain expertise embedded in workforce and service delivery(p.149)
- • Proprietary NEXT suite of Gen AI-enabled technology platforms driving operational leverage(p.150)
- • Leading market position with all 20 largest biopharmaceutical companies as clients(p.151)
- • High client stickiness with 122.83% retention rate and sticky recurring revenue model(p.151)
- • Proven M&A track record with 13 successful acquisitions integrating specialized capabilities(p.153)
- • Strong gross margins and scalability demonstrated by 19.69% Adjusted EBITDA margin(p.149)
- • Global presence across 6 operation hubs and 17 offices enabling time-zone arbitrage(p.153)
- • Experienced management with 24+ years in healthcare technology sector(p.189)
- • Long-standing executive team with deep sector expertise(p.189)
- • Established global subsidiary network across major markets(p.230)
- • Acquisition-driven business expansion with significant goodwill and intangible assets reflecting strong M&A track record(p.249)
- • Diversified revenue streams across three operating segments with strong geographic presence in North America and Europe(p.268)
- • Significant liquidity position with investments in mutual funds and treasury bills totaling over ₹3,000 million(p.253)
Weaknesses
- • Heavy customer concentration with top 10 clients representing 67% of revenue(p.31)
- • Revenue predominantly from one subsidiary representing 79.56% of revenue(p.33)
- • High employee attrition rate of 15.96% in nine months to December 2023(p.35)
- • History of delays in statutory dues payments including provident fund contributions(p.36)
- • Multiple cybersecurity incidents including data breaches and phishing attacks(p.40)
- • Leased premises with expiring leases between May 2025 and July 2027(p.37)
- • Pending litigation related to TCPA violations and ongoing settlement negotiations(p.39)
- • Exposure to counterparty credit risk and payment delays(p.42)
- • Significant employee benefits expense and vulnerability to wage increases(p.49)
- • Dependence on key managerial and senior management personnel(p.50)
- • Corporate records and filings incomplete or contain inaccuracies(p.50)
- • Inadequate insurance coverage for all potential business losses(p.50)
- • Outstanding litigation involving company and subsidiaries(p.51)
- • Non-compliance history with FEMA reporting requirements(p.48)
- • Dependence on concentrated customer base(p.146)
- • Material indebtedness from subsidiary acquisition(p.106)
- • Missing corporate filings and records(p.89)
- • High revenue concentration with top 5 clients generating 49.19% of FY2023 revenue(p.161)
- • Employee attrition at 22.22% for FY2023 despite retention programs, indicating talent retention challenges(p.164)
- • Entire operation dependent on leased premises with no owned property, creating operational inflexibility(p.167)
- • Recent rapid headcount reduction of 237 employees in 9M FY2024, signaling operational strain(p.163)
- • Significant non-current borrowings indicating high leverage(p.221)
- • High goodwill and intangible assets from acquisitions exposing to impairment risk(p.221)
- • Dependence on limited set of major shareholders for governance and capital(p.207)
- • High concentration of revenue from limited customer base with top three customers representing approximately 40% of revenues(p.270)
- • Significant borrowing obligations with term loans of USD 48 million due over 36 months commencing March 2024(p.260)
- • Contingent liabilities and pending litigation related to alleged TCPA violations with uncertain outcome and potential treble damages(p.286)
- • Significant goodwill and intangible assets on balance sheet requiring regular impairment testing and sensitive to assumptions(p.250)
- • Significant litigation exposure from fax marketing campaigns(p.336)
- • Material unfavorable transfer pricing adjustment demand(p.338)
- • Pending employment discrimination claims against subsidiary(p.337)
- • Restrictive financial and operational covenants from lenders(p.333)
- • Potential severe consequences of loan default triggering restructuring and debt-to-equity conversion(p.334)
Opportunities
- • Life sciences industry revenue projected to grow to ₹163.5 trillion by 2026(p.17)
- • Life sciences operations expenditure growing at 6.5% CAGR to ₹15.5 trillion by 2026(p.17)
- • Integration of generative AI into solutions offering competitive advantage(p.41)
- • Expansion potential from rising aging population and chronic disease prevalence(p.17)
- • Expansion through strategic acquisitions and inorganic growth(p.44)
- • Deployment of IPO proceeds for debt repayment and capital expansion(p.60)
- • Growing life sciences operations outsourcing market(p.133)
- • Underpenetrated marketing and sales outsourcing segment(p.140)
- • Rising demand for digital transformation in life sciences(p.146)
- • Growing clinical trial complexity and volume(p.141)
- • Increasing adoption of AI/ML in drug development(p.137)
- • Large and growing life sciences operations market with 6.5% CAGR to 2026 and low outsourcing penetration(p.147)
- • Expansion of clinical trials and drug discovery segments with 37-42% outsourcing penetration rates(p.156)
- • Digital-first shift in life sciences industry enabling omnichannel activation at higher efficiency(p.155)
- • Land-and-expand strategy with established clients generating 122.83% retention and significant cross-sell headroom(p.155)
- • Gen AI integration opportunity to reduce headcount intensity and drive efficiency(p.150)
- • Mid-market pharma and emerging biotech segments with lower penetration than large pharma(p.155)
- • Expansion in global life science and healthcare technology services market(p.230)
- • Growth through strategic acquisitions demonstrated by past deal activity(p.228)
- • Growth through strategic acquisitions in healthcare services and life sciences sectors with demonstrated integration capability(p.249)
- • Expansion into European markets with growing presence in multiple countries through subsidiary network(p.263)
- • Growing unearned revenue and deferred revenue base indicating strong customer contracts and future revenue visibility(p.264)
- • International expansion into regulated pharmaceutical services markets(p.340)
Threats
- • Highly competitive life sciences operations market with multiple competitor types(p.33)
- • Clients can terminate work orders with 30-90 days notice without cause(p.37)
- • Regulatory compliance risks in life sciences marketing and sales(p.38)
- • Economic downturn and industry recession impact on life sciences spending(p.29)
- • Risk of client consolidation reducing total addressable market(p.41)
- • Dependence on third-party sub-contractors and vendors for critical services(p.40)
- • Intense competition and margin pressure from lower-cost generic products(p.48)
- • Exchange rate fluctuations affecting international operations and revenues(p.43)
- • Geopolitical tensions and regulatory restrictions on international operations(p.43)
- • Visa and work permit restrictions limiting international staffing capacity(p.47)
- • Restrictive debt covenants limiting operational flexibility(p.43)
- • Dependence on third-party technology platforms and software(p.44)
- • Rapid technological change requiring continuous investment and adaptation(p.45)
- • Sensitivity to general economic downturns and reduced client spending(p.58)
- • Regulatory and tax uncertainties in multiple jurisdictions(p.57)
- • Drug pricing pressures and regulatory caps(p.137)
- • Loss of drug exclusivity and patent cliffs(p.137)
- • Slowing drug pipeline and R&D approval rates(p.137)
- • Economic slowdown impacting life sciences operations spend(p.137)
- • Rising product recalls in life sciences industry(p.137)
- • Intense competition from multiple service provider categories(p.142)
- • Regulatory compliance complexity across multiple jurisdictions affecting service delivery(p.149)
- • Competition from diverse service providers including IT/BPOs, CROs, CSOs and digital engineering firms(p.165)
- • Data security and privacy compliance requirements imposing operational constraints(p.168)
- • Dependency on third-party cloud infrastructure introducing service continuity risks(p.150)
- • Pharmaceutical industry cyclicality and product patent expiration affecting client spending(p.158)
- • Insurance coverage may be inadequate for potential economic losses(p.163)
- • Exposure to regulatory changes in multiple jurisdictions(p.231)
- • Foreign currency exchange volatility affecting subsidiaries in multiple countries(p.234)
- • Customer concentration risk in life science and pharmaceutical sectors(p.230)
- • Significant foreign exchange exposure with majority of revenue in USD and EUR against cost base in INR(p.283)
- • Exposure to interest rate risk with floating rate borrowings subject to market rate fluctuations(p.282)
- • Concentration risk in customer base with geographic dependence on North America and Europe representing majority of revenues(p.284)
- • Regulatory risks including pending GST audit matters and income tax disputes across multiple assessment years(p.286)
- • Exposure to unfavorable adverse change clauses in debt agreements(p.333)
- • Risk of insolvency proceedings triggered by default(p.334)
- • Regulatory dissolution risk from government action(p.334)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Manish Gupta | Individual Selling Shareholder | 10.13% | — |
| Dr. Rajesh Bhaskaran Nair | Individual Selling Shareholder | 9.11% | — |
| Anita Nair | Individual Selling Shareholder | Negligible | — |
| Vida Trustees Private Limited (Trustee of Fig Tree Trust) in its capacity as partner of Group Life Spring | Investor Selling Shareholder | 4.12% | — |
| BPC Genesis Fund I SPV, Ltd. | Investor Selling Shareholder | 7.95% | — |
| BPC Genesis Fund I-A SPV, Ltd. | Investor Selling Shareholder | 4.12% | — |
| CA Dawn Investments | Investor Selling Shareholder | 20.42% | — |
| Manish Gupta | Promoter | — | — |
| Dr. Rajesh Bhaskaran Nair | Promoter | — | — |
| CA Dawn Investments | Promoter Group | — | — |
| Nadathur Fareast Pte. Ltd | Shareholder (Nadathur Group) | 23.69% | — |
| CA Dawn Investments | Shareholder | 20.47% | — |
| Manish Gupta | Promoter/Director | 10.15% | — |
| Dr. Rajesh Bhaskaran Nair | Promoter/Director | 9.13% | — |
| BPC Genesis Fund I SPV Ltd. | Shareholder | 7.97% | — |
| Dr. Sanjay Suresh Parikh | Promoter/Director | 5.39% | — |
| Nadathur Group | Investor/Shareholder | — | — |
| CA Dawn Investments | Investor/Shareholder | — | — |
| Brighton Park Capital | Investor/Shareholder | — | — |
| Dr. Rajesh Bhaskaran Nair | Founder/Initial Shareholder | — | — |
| Manish Gupta | Founder/Initial Shareholder | — | — |
| Dr. Sanjay Suresh Parikh | Founder/Initial Shareholder | — | — |
| Nadathur Group | Shareholder Group | 27.76% | — |
| CA Dawn Investments | Shareholder | 20.42% | — |
| Dr. Rajesh B.Nair | Director/Promoter | 9.15% | — |
| Mr. Manish Gupta | Director/Promoter | 10.18% | — |
| Dr. Sanjay Parikh | Director/Promoter | 5.41% | — |
| Nadathur Fareast Pte. Ltd | Promoter Group | 23.77% | — |
| CA Dawn Investments | Investor | 20.53% | — |
| BPC Genesis Fund I SPV, Ltd. | Investor | 7.99% | — |
| BPC Genesis Fund I-A SPV, Ltd. | Investor | 4.14% | — |
| Vida Trustees Private Limited | Selling Shareholder | — | — |
| BPC Genesis Fund I SPV, Ltd. | Selling Shareholder | — | — |
| BPC Genesis Fund I-A SPV, Ltd. | Selling Shareholder | — | — |
| CA Dawn Investments | Selling Shareholder | — | — |
| Manish Gupta | Selling Shareholder | — | — |
| Dr. Rajesh Bhaskaran Nair | Selling Shareholder | — | — |
| Anita Nair | Selling Shareholder | — | — |
Leadership
Manish Gupta · Chief Executive Officer
Suhas Prabhu · Chief Financial Officer
Srishti Ramesh Kaushik · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Indegene IPO FAQs
What is the lot size of Indegene IPO?
The minimum lot size of Indegene IPO is 33 shares. One lot costs ₹14,916 at the cut-off price.
When does Indegene IPO open and close?
Indegene IPO opened for subscription on 06 May 2024 and closed on 08 May 2024.
What is the listing date of Indegene IPO?
Indegene IPO listed on 13 May 2024.