Indegene Limited, a significant player in the life sciences industry, made a remarkable entry into the stock market with its shares listing at a 45% premium. The company’s debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) saw a increase in share prices.
Listing Performance
The highly anticipated listing of Indegene shares witnessed a premium of 45% to the issue price of ₹452 per share. On the BSE, the stock debuted at ₹659.70 per share while on the NSE, it opened at ₹655 per share. Within the first five minutes of trading, more than 1 crore shares exchanged hands on the NSE.
#NewListing | Indegene lists at ₹655/sh Vs issue price of ₹452/sh pic.twitter.com/JkWRmUNagi
— CNBC-TV18 (@CNBCTV18Live) May 13, 2024
Despite the initial surge, Indegene shares experienced a subsequent decline of 11% on the BSE and 10% on the NSE from the listing price. Market volatility often impacts the performance of newly listed stocks.
Subscription Details
Indegene’s initial public offering (IPO), which aimed to raise a total of ₹1841.76 crore from public investors, received high demand during the subscription period. The IPO was oversubscribed more than 69 times, with investors bidding for 201.13 crore shares against the 2.88 crore shares on offer. Notably, the Qualified Institutional Buyers (QIBs) portion was oversubscribed by 197.55 times.
Utilization of Proceeds
Indegene plans to utilize the proceeds from the IPO for various strategic purposes. A significant portion of the funds, amounting to ₹391.33 crore, is allotted for the repayment of debt of its material subsidiary, ILSL Holdings, Inc. Additionally, ₹102.91 crore will be allocated towards financing the capital expenditure requirements of the company and its subsidiary, Indegene, Inc.
Analysis and Recommendations
Market experts have hailed Indegene’s market debut, emphasizing its strong fundamentals and growth potential.
Shivani Nyati, Head of Wealth at Swastika Investmart, advised long-term investors to maintain their positions, citing the company’s consistent growth and market conditions.
Similarly, Rajan Shinde, Research Analyst at Mehta Equities, recommended subscribing to the IPO for long-term gains, citing strong financials and valuations.
Overview of Indegene Ltd.
Founded in 1998, Indegene offers digital services tailored for the life sciences industry, encompassing drug development, clinical trials, regulatory submissions and sales/marketing support. It has a diverse portfolio of solutions and a client base comprising the world’s largest biopharmaceutical companies.
