Indegene Limited IPO
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Indegene is a “digital-first” commercialization company focused exclusively on the global life sciences industry.
The solutions enable biopharmaceutical, emerging biotech and medical devices companies to develop products, launch them in the market, and drive sales through their life cycle in a more effective, efficient and modern manner.
Their portfolio of solutions cover all aspects of commercial, medical, regulatory and R&D operations of life sciences companies.
Life sciences enterprises require a talent pool with in-depth domain expertise on the journey of a drug or medical device from the research lab to the market to organise and analyse scientific and clinical data, navigate the regulatory landscape and the ethical guidelines within which the industry operates, and to develop the requisite medical content for healthcare professionals, patients, and payers.
Life sciences companies are embracing technological partners with the requisite domain expertise to aid them in this digital journey.
The Company is positioned at the intersection of healthcare and technology, The solutions span across different stages of the commercialization lifecycle of drugs and medical devices.
Competitive Strength
(i) Domain expertise in healthcare
(ii) Robust digital capabilities and in-house developed technology portfolio
(iii) Track record of establishing long-standing client relationships
(iv) Global delivery model
(v) Experienced management and motivated talent pool supported by marquee investors
(vi) Track record of creating value through acquisitions
Objects of the Indegene Limited IPO:
Company proposes to utilise the Net Proceeds towards funding of the following objects:
1. Repayment/prepayment of indebtedness of one of our Subsidiaries, ILSL Holdings, Inc.
2. Funding the capital expenditure requirements of our Company and our Material Subsidiary, Indegene, Inc.
3. Payment of consideration towards acquisition of additional shares in DT Associates Limited by ILSL Holdings, Inc., a Subsidiary.
4. General corporate purposes and inorganic growth.
Total Number of share issue :-
Fresh issue is 16,814,159 shares,
Offer for sale is 23,932,732 shares.
Indegene Limited IPO Details:
| Open Date: | May 06 2024 |
| Close Date: | May 08 2024 |
| Total Shares: | 40,746,891 |
| Face Value: | ₹ 2 Per Equity Share |
| Issue Size: | 1,841.76 Cr. |
| Lot Size: | 33 Shares |
| Issue Price: | ₹ 430 - 452 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | May 13 2024 |
Promoters And Management:
(i) Jairaj Manohar Purandare is a Non-Executive Independent Director on the Board of our Company. He holds a bachelor of science degree from the University of Bombay. He is a qualified chartered accountant. He has several years of experience in taxation. He was a member of the Central Direct Taxes Advisory Committee of the Government of India constituted in 2008. He was first appointed as a Director on the Board of our Company on April 28, 2022.
(ii) Manish Gupta is the Chairman, Executive Director and the Chief Executive Officer of our Company. He holds a bachelor of technology degree in mechanical engineering from the Indian Institute of Technology (Banaras Hindu University), Varanasi and a post graduate diploma in management from the Indian Institute of Management, Ahmedabad. He has 22 years of experience in the technology-led healthcare solutions provider sector. He has been a Director of our Company since February 11, 2000.
(iii) Dr. Sanjay Suresh Parikh is an Executive Director and Executive Vice President of our Company. He holds a bachelor of technology degree in electrical engineering from the Indian Institute of Technology, Bombay and a master of science degree (clinical engineering) from Case Western Reserve University, Ohio, USA. He also holds a doctorate in philosophy from Johns Hopkins University. He has 30 years of experience in the pharmaceuticals industry and technology-led healthcare solutions provider sector. He was appointed as a Director on the Board of our Company on January 29, 2002.
Financials of Indegene Limited IPO:
A. Balance Sheet
B. Profit & Loss Statement
C. Cash Flow Statement
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 | 9MFY24 |
| Equity Share Capital | 3.13 | 3.51 | 442.95 | 443.51 |
| Reserves | 3,242 | 7,635 | 10,194 | 12,827 |
| Borrowings | 248 | 182 | 3,943 | 3,993 |
| Trade Payables | 502 | 742 | 733 | 817 |
| Other Liabilities | 1,966 | 4,971 | 6,725 | 7,101 |
| Total Liabilities | 2,715 | 5,896 | 11,401 | 11,911 |
| Net Block | 231 | 337 | 406 | 321 |
| Other Assets | 1,136 | 1,898 | 7,145 | 7,150 |
| Total NC Assets | 1,367 | 2,234 | 7,552 | 7,471 |
| Receivables | 2,854 | 4,439 | 6,420 | 7,112 |
| Cash & Bank | 1,399 | 5,173 | 858 | 1,226 |
| Other Assets | 340 | 1,688 | 7,208 | 9,374 |
| Face value | 2 | 2 | 2 | 2 |
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 | 9MFY24 |
| Sales | 9,663 | 16,646 | 23,061 | 19,166 |
| Employee Cost | 5,356 | 10,143 | 14,648 | 12,232 |
| Other Expenses | 2,001 | 3,633 | 4,452 | 3,267 |
| Other Income | 306 | 259 | 580 | 531 |
| Depreciation | 255 | 335 | 598 | 576 |
| EBITDA | 2,612 | 3,128 | 4,542 | 4,199 |
| EBITDA Margin | 27.03% | 18.79% | 19.69% | 21.91% |
| Interest | 70 | 60 | 313 | 371 |
| Profit before tax | 2,315 | 2,265 | 3,630 | 3,251 |
| Tax | 458 | 637 | 969 | 832 |
| Net profit | 1,857 | 1,628 | 2,661 | 2,419 |
| NPM (%) | 18.63% | 9.63% | 11.26% | 12.28% |
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 | 9MFY24 |
| Cash From Operating Activity | ||||
| Profit From Operation | 2,131 | 3,136 | 4,544 | 3,930 |
| Receivable | -701 | -1,517 | -1,153 | -651 |
| Loans And Advances | -32 | -153 | -593 | 9 |
| Other WC Items | 818 | 2,208 | -414 | 1,032 |
| Working Capital Changes | 85 | 538 | -2,160 | 389 |
| Direct Taxes | -496 | -703 | -1,082 | -777 |
| Net Cash Inflow from Operating Activity | 1,720 | 2,970 | 1,302 | 3,543 |
| Cash from Investing Activity | ||||
| Fixed assets purchased | -206 | -247 | -188 | -90 |
| Investments purchased | 0 | -3,747 | -4,874 | -10,993 |
| Investment sold | 0 | 2,598 | 0 | 8,944 |
| Acquisition of companies | -45 | -164 | -3,925 | -783 |
| Other investing items | 8 | -42 | 54 | 286 |
| Net cash inflow from investing activities | -242 | -1,602 | -8,933 | -2,635 |
| Cash from Financing Activity | ||||
| Proceeds from shares | 0 | 2,629.02 | 0.09 | 0.08 |
| Intrest paid fin | -35 | -27 | -176 | -230 |
| Financial liabilities | -153 | -167 | -254 | -214 |
| Other financing items | -1,127 | -100 | 3,761 | 7 |
| Net Cash Flow | 163 | 3,703 | -4,300 | 471 |
Comparison With Peers:
Note: -There are no listed companies in India that are engaged in a business similar to this Company.
Recommendation on Indegene Limited IPO:
Review and Recommendation of Indegene by team IZ is 6/10.
1. Their business provides a comprehensive suite of digital-led commercialization services tailored for the life sciences industry, which includes biopharmaceutical, emerging biotech, and medical devices companies. Their offerings span the entire product lifecycle from drug development, clinical trials, and regulatory compliance to pharmacovigilance, sales, and marketing.
2. Their solutions leverage over two decades of domain expertise and advanced technology to aid life sciences companies in more effectively developing, launching, and marketing their products. This approach not only enhances efficiency and effectiveness but also addresses the challenges of talent shortages and regulatory pressures within the industry.
3. With established relationships with the top 20 biopharmaceutical companies globally, their firm draws a significant portion of its revenue from these key clients, underscoring the trust and reliance placed in their services. As of the end of 2023, you serve 65 active clients, with a revenue model that sees substantial contributions from high-value partnerships.
4. Portfolio includes:
i. Enterprise Commercial Solutions: Focuses on digital marketing operations, helping clients develop and execute marketing strategies that are both scalable and personalized.
ii. Omnichannel Activation: Employs digital strategies to enhance the promotion of products to healthcare professionals (HCPs), aiming to replicate the impact of traditional face-to-face interactions through digital means.
iii. Enterprise Medical Solutions: Establishes centers of excellence to handle regulatory and medical operations, including content writing, compliance reviews, and pharmacovigilance.
iv. Enterprise Clinical Solutions: Supports drug discovery and clinical trial processes with technologies that optimize trial management and patient recruitment.
5. Their company is positioned at the crucial intersection of healthcare and technology, where they leverage AI and ML to transform unstructured data into actionable insights, thereby facilitating efficient operations across various stages of the drug commercialization lifecycle.
6. The Revenue has Increased from Rs.966 Crores in FY21 to Rs.2,306 Crores in FY23.
7. The EBITDA has Increased from 261 Crores in FY21 to 454 Crores in FY23.
8. The PAT has Increased from 185 Crores in FY21 to 266 Crores in FY23.
9. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 13.48,
10. Market Capitalization is 10,814 Crore & P/E is 33.52x based on FY24.
Company Address:
Indegene Limited
Aspen Block G4, 3 rd Floor, Manyata Embassy
Business Park, Outer Ring Road, Nagawara
Bengaluru 560 045
Phone: +91 80 4674 4567
Email: compliance.officer@indegene.com
Website: https://www.indegene.com/
Discussion on Indegene Limited IPO:
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*Overview of Indegene: Bridging Technology and Life Sciences*
1. Indegene is a digital-first commercialization partner exclusively serving the global life sciences sector. The company aids biopharmaceutical, biotech, and medical device firms through the entire lifecycle of product development, launch, and market expansion.
2. Their comprehensive suite of solutions addresses commercial, medical, regulatory, and R&D needs. By combining deep domain expertise with cutting-edge technology, Indegene enables life sciences companies to effectively manage and utilize scientific and clinical data, navigate regulatory challenges, and meet ethical standards.
3. Additionally, Indegene crafts crucial medical content for various stakeholders, positioning itself as a critical ally in the digital transformation journey of the life sciences industry.