Indigene Limited is the next company that is eyeing the Initial Public Offering (IPO) route to go public. Backed by Carlyle, a private equity company, and NS Raghavan, the co-founder of Infosys, Indigene Limited is engaged in the life sciences sector. It offers value-added solutions to a range of businesses, such as –

• Biopharmaceutical
• Medical device companies
• Biotech firms

The company has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its IPO. Though the IPO dates are not yet finalized, here’s a look into the company and its proposed IPO.

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About Indigene Limited

Established in 1998, Indigene Limited is a tech-enabled organization. It is engaged in producing and distributing various products and services. Some of the important details about the company and its business are as follows:

• The product portfolio of the company includes omnichannel activation and enterprise commercial and medical solutions.
• Per the Everest Report, the company had recorded a clientele of 19 of the 20 largest names in the biopharmaceutical market. Per the company’s financial reports, as of June 2022, it had 52 active clients.
• In February 2021, Indigene Limited raised $200 million from Brighton Park Capital and The Carlyle Group.

Financial performance of Indigene Limited

Here’s a look at the financial performance of Indigene Limited for the last three financial years.

About Indigene Limited's IPO

The primary highlights of the IPO are as follows:

• The size of the IPO is ₹3200 crores. Of this, shares worth ₹950 crores would be a fresh issue, while 3.63 crore shares would be put up through an Offer For Sale (OFS).
• The OFS will see the company's initial promoters and existing shareholders dilute their stakes. The OFS break-up is as follows:

• The funds raised through the IPO would be used for the following activities –

  • Debt repayment
  • Capital expenditure funding
  • Payment of the deferred amount for a previous acquisition
  • Financing inorganic growth
  • Other corporate general purposes

• The book-running managers of the IPO are Citigroup Global Markets India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and JP Morgan India.

• There might be a pre-IPO placement of ₹190 crores. If it is successful, the IPO size will be scaled down.

• The IPO allocation would be as follows –

  • 75% of the issue would be reserved for Qualified Institutional Buyers (QIBs)
  • 15% of the issue would be reserved for Non-Institutional Buyers (NIBs)
  • 10% of the issue would be reserved for retail investors

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Strengths and weaknesses of Indigene Limited

Here’s a comparative analysis of what works and what doesn’t for Indigene Limited –

Strengths

• Expertise in the healthcare industry
• Cutting-edge digitization and tech support
• Consistent record of maintaining long-term client relationships
• Some of the largest names in the client book
• Global and domestic operations
• Efficient management and support from marquee investors
• Consistent record of adding value through new acquisitions

Weaknesses

• Operates in the highly competitive life sciences sector
• A considerable portion of the revenue is attributable to international clients in North America and Europe
• No new client engagements
• Outstanding legal proceedings against the company’s stakeholders
• The company has failed to provide contract-relevant solutions

Should you invest?

Indigene Limited is a leading name in the life sciences sector and is backed by prominent names in the business world. The company's financial performance is stellar, and it even managed to convert its loss into profit within a year. The company has consistently been posting growing revenue and has good prospects.

Assess the strengths and weaknesses of the company, your financial goals, and your risk appetite, and then choose to invest. If you have a long-term investment horizon, you can subscribe to the IPO and get access to the shares at a lower rate. Moreover, the shares might diversify your portfolio further.

So, analyze your needs, do research, and then make a suitable choice. Stay updated on the latest Upcoming IPO 2023!

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