Indegene sets IPO price band at Rs 430-452, aims to raise Rs 1,842 crore

Indegene, a healthcare solutions company, today announced its initial public offering (IPO) price band at Rs 430-452 per share ahead of its launch on May 6. The total offering is Rs 1,841.76 crore, with a fresh issue of Rs 760 crore and an offer for sale of 2.3 crore shares aggregating up to Rs 1,081.76 crore. The IPO is set to close on May 8.

Indegene intends to use the proceeds from the fresh issue to pay off debt from one of its subsidiaries, ILSL Holdings, fund capital expenditures for itself and another subsidiary, Indegene Inc, and invest in general business needs and future growth opportunities such as inorganic growth.

In financial year 2023, Indegene reported Rs 2,306.13 crore in revenue from operations with a profit of Rs 266 crore.

The prominent shareholders who will offload their holdings include Manish Gupta (up to 1.12 million equity shares), Rajesh Bhaskaran Nair (up to 3.2 million equity shares), Anita Nair (up to 1.15 million equity shares), Vida Trustees (up to 3.6 million equity shares), BPC Genesis Fund I SPV (up to 2.6 million equity shares), BPC Genesis Fund I-A SPV (up to 1.3 million equity shares) and CA Dawn Investments (up to 10.79 million equity shares).

The IPO will follow a book-building process with a maximum of 50 per cent of shares allocated to institutional buyers (QIBs). Up to 60 per cent of the QIB portion may be allotted to anchor investors, with a minimum of one-third reserved for domestic mutual funds. The remaining shares will be divided between non-institutional bidders (minimum 15 per cent) and retail individual bidders (minimum 35 per cent). A separate employee reservation portion is also available. All bidders except anchor investors must use the ASBA process to block funds during bidding.

The firm has appointed Kotak Mahindra Capital Company, Citigroup Global Markets, J.P. Morgan India, and Nomura Financial Advisory and Securities as book lead managers.