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Indegene Makes Stellar Debut, Lists at 45% Premium on Market Opening
Indegene Limited, a Carlyle and Nadathur Fareast-backed company, made a strong start on its market debut on May 13, 2023, listing at Rs 655 per share. This represents a premium of 45 percent over the issue price of Rs 452, signaling strong investor confidence in the company's prospects.
The debut gains, however, fell short of grey market estimates, where shares were trading at a premium of 68 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
At the end of the three-day subscription period, the Rs 1,841.76-crore public offer was subscribed 69.91 times as investors bought 201.81 crore equity shares as against the 2.88 crore shares on offer. Non-institutional investors (high net worth individuals) were at the forefront, picking 55.07 times the reserved portion, followed by QIBs (qualified institutional buyers) who bought 197.55 times the part set aside for them. The retail investor portion was booked 7.95 times.
The company plans to use the fresh proceeds garnered from the issue to repay the debt of subsidiaries, fund the company's capital expenditure requirements, and for general corporate purposes.
The Carlyle and Nadathur Fareast-backed company garnered Rs 549 crore via an anchor book on May 3, 2023. Institutional investors include Smallcap World Fund Inc, Abu Dhabi Investment Authority, East Bridge Capital Master Fund, Copthall Mauritius Investment, SBI Mutual Fund, ICICI Prudential MF, Whiteoak Capital, DSP Mutual Fund, and Kotak Mutual Fund.
Indegene provides digital services for the life sciences industry. They assist with drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales and marketing support.
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Source: Indegene makes stellar start, lists at 45% premium on market debut