INITIAL PUBLIC OFFER (IPO)

03-05-2024
INDEGENE LTD 06-05-2024 - 08-05-2024
Industry: Digital-Led Commercialization Services Price Band: ₹430-452
Recommendation: Subscribe for long term Post Implied Market Cap: – ₹10,346 - ₹10,836 Cr
Key Data About the Company
Issue Size (₹ Cr) 1,789 - 1,842 Indegene Ltd, established in 1998, provides digital-led commercialization services for the life sciences
Fresh (₹) 760 industry. They assist biopharmaceutical, emerging biotech, and medical device companies in product
OFS (₹) 1,082
development, market launch, and sales. With over two decades of healthcare domain expertise and
No of shares offered 41,628,952 -
tailored technology, they offer comprehensive solutions covering commercial, medical, regulatory, and
4,076,550
Face Value (₹ /share) R&D operations for life sciences companies.
2
Bid Lot 33 Investment Rationales
Domain expertise in healthcare: Indegene leverages its domain expertise to use technology effectively,
Indicative Timetable
optimizing sales and marketing costs, enabling omnichannel activation, expediting patient recruitment for
Activity On or about
clinical trials, and accelerating regulatory submissions. With a highly skilled team, including 20.49% of
Finalisation of Basis of Allotment 9/5/2024
employees with healthcare backgrounds, they offer end-to-end support across the commercialization
Refunds/Unblocking ASBA Fund 10/5/2024
value chain for life sciences companies.
Credit of equity shares to DP A/c 10/5/2024
Trading commences 13/5/2024
Robust digital capabilities and in-house developed technology portfolio: Indegene has developed
proprietary AI-based tools and platforms under the "NEXT" brand, aiming to optimize various aspects of
Shareholding (No. of shares)
the R&D and commercialization processes in the life sciences industry. Supported by a team of 650
Pre-Issue 222,435,091 individuals, including a Gen AI workbench, these tools facilitate interaction between technology experts
Post Issue (Lower price band) 240,606,392 and subject matter experts, driving enterprise outcomes at scale across content management, safety,
Post Issue (Higher price band) 239,743,990 regulatory intelligence, customer data management, clinical trials, and workflow management.
Shareholding Pattern
Global delivery model: Indegene offers solutions through two delivery models: enterprise-wide
Public - Individual Selling S/h:
technology-enabled COEs and digital Omnichannel Activation solutions. Their COEs consist of subject
Pre Issue 19.89%
Post Issue
experts collaborating with clients to deliver technology-enabled solutions globally. Omnichannel
16.20%
Activation enables digital sales and marketing campaigns, reducing the reliance on medical
Public - Investor Selling S/h: representatives for biopharmaceutical companies.
Pre Issue 36.70%
Post Issue 26.42% Track record of creating value through acquisitions: Indegene has executed multiple successful
acquisitions since 2005, leveraging synergies, networks, technologies, and talent pools. These
Public - Others:
Pre Issue
acquisitions have expanded their solutions portfolio, accessing new technologies, markets, and clients.
43.24%
Post Issue 57.23% The latest acquisition is expected to enhance their commercialization portfolio with brand strategy,
marketing development capabilities, and patient engagement platforms.
Employee Trust::
Risk
Pre Issue 0.17%
Post Issue 0.16% 1) Concentration of clients in revenue contribution.
Issue Breakup 2) Regulated by data protection and various other laws.

QIB 50% MView

NIB 15% We believe Indegene ltd IPO gives investors a unique opportunity to invest in a leading provider of digital-led
Retail 35% commercialization services tailored for the life sciences industry. We think indegene’s deep domain expertise in life
sciences, coupled with advanced tech solutions, optimizes sales, activates omnichannels, speeds patient recruitment,
Other Details and simplifies regulatory submissions, benefiting companies across the commercialization chain. We also believe the
company's investment in proprietary tools and platforms, such as "NEXT" suite, underscores their commitment to
BRLMs: Kotak Mahindra Capital, Citigroup Global,
driving transformation across the commercialization lifecycle. We also think operating through two effective delivery
J.P.Morgan, Nomura Financial.
models, Indegene is well-positioned to provide customized, enterprise-wide solutions over multi-year periods,
Registrar: Link Intime India Pvt. Ltd. delivering significant value and impact to their clients. By looking at the financials the company has shown a
Listing: BSE & NSE substantial growth in revenue from operations and net profit in FY 2022 & FY2023 by 72%/39% & -12%/63%. On
valuation parse at the upper band of ₹ 452/-, the issue is asking for a Market Cap of ₹ 10836/- Cr. Based on
annualized FY 2024 earnings and fully diluted post-IPO paid-up capital, the company is asking a PE of 33.6x which
seems fully priced looking at near term growth trigger. But considering its unique business model and virtual
Research Analyst monopoly in its business that generates over 98% global revenue it seems the company may command premium
valuation. Indegene successful track record of strategic acquisitions since 2005 has contributed to their growth
Rajan Shinde
trajectory by providing access to new technologies, markets and clients, further solidifying their position as an
rajan.shinde@mehtagroup.in
industry leader. Hence, considering all the parameter, we are recommending investors to “SUBSCRIBE” the issue for
022-61507142
the long term and if we get good healthy listing gains above 25% we recommend conservative investors to book
profit.
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 FINANCIALS
CONSOLIDATED FINANCIAL TABLES

BASIC FINANCIAL DETAILS

As at Dec’ 31 As at March’ 31
Particulars ₹ (in Cr) 2023 (09) 2022(09) 2023 2022 2021
Equity Share Capital 44.35 44.25 44.3 0.35 0.31
Reserves 1,282.65 967.24 1,019.43 763.55 324.2
Net Worth as Stated 1,327.00 1,011.49 1,063.72 763.90 333.09
Revenue from Operations 1,916.61 1,673.89 2,306.13 1,664.61 966.27
Revenue Growth (%) as stated 14.50% - 38.54% 72.27% -
Adj. EBITDA as stated 419.85 343.54 454.19 312.81 261.18
Adj. EBITDA Margin (%) as stated 21.91% 20.52% 19.69% 18.79% 27.03%
Net Profit for the Year 241.9 217.28 266.1 162.82 185.68
Net Profit (%) as stated 12.62% 12.98% 11.54% 9.78% 19.22%
EPS - Basic (₹) 10.91 9.83 12.03 7.50 7.56
RONW (%) 18.23% 21.48% 25.02% 21.57% 46.04%
NAV (₹) 59.86 45.75 48.10 34.80 16.42

Source: Company RHP

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Digitally signed by PRASHANTH TAPSE
Msearch’s Recommendation (Absolute Performance)
PRASHAN
DN: c=IN, o=Personal, title=9900,
pseudonym=133531429349236022ocvva4
Buy: > 20% within the next 12 Months Uvh0nyjf,
2.5.4.20=88ad05af18ea58b7b2b50afd5b92
0ad25e50c9e9f1d0d57a0c7a7e6ba344954f
Accumulate: 5% to 20% within the next 12 Months
TH TAPSE
, postalCode=410206, st=Maharashtra,
serialNumber=e7f15387bb8cddded17ae08
Sell : < -20% within the next 12 Months daa39e207395253da05e3cc35578e3bd25c
550f0e, cn=PRASHANTH TAPSE
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