Indegene Limited provides digital-led commercialization services for the life sciences industry, including biopharmaceutical, emerging biotech and medical devices companies, that assist them with drug development and clinical trials, regulatory submissions, pharmacovigilance and complaints management, and the sales and marketing of their products. The solutions enable life sciences companies to develop products, launch them in the market, and drive sales through their life cycle in a more effective, efficient and modern manner. They achieve this by combining over two decades of healthcare domain expertise and fit-for purpose technology. The portfolio of solutions cover all aspects of commercial, medical, regulatory and R&D operations of life sciences companies. They have established client relationships with each of the 20 largest biopharmaceutical companies in the world by revenue for the Financial Year 2023, having earned more than 69% of the total revenue from operations for each of the nine months ended December 31, 2023 and 2022 and the Financial Years 2023, 2022 and 2021 from these 20 customers. As of December 31, 2023, they had a total of 65 active clients (i.e., clients from whom they earned US$0.25 million or more in revenues during the 12 months preceding the relevant date). They had 27 clients from whom they earned between US$1 million and US$10 million in revenues, five clients from whom they earned between US$10 million and US$25 million in revenues, and three clients from whom we earned more than US$25 million in revenues, during the 12 months ended December 31, 2023. Company caters to the needs of the clients from six operation hubs and 17 offices located across North America, Europe and Asia. The solutions are offered primarily through two delivery models, namely the enterprise-wide technology-enabled COEs and the digital Omni-channel Activation solutions. The COEs comprise individuals with subject expertise across multiple functional areas who work closely with the clients to deliver the technology-enabled solutions. These CoEs work closely with the clients to deliver the multi-year, enterprise-wide, global solutions. These CoEs have the ability to stitch together multiple upstream and downstream activities and work with multiple business verticals or with different global and regional teams of the same organization. The digital Omni-channel Activation capabilities allow them to run sales and marketing campaigns digitally; and thereby reduce or eliminate the need for biopharmaceutical companies to engage medical representatives. Further, they do not require dedicated teams to be engaged on a full-time basis. As per financial performance, Indegene Limited has posted total income / net profits of Rs 996.92 Cr / Rs 149.41 Cr (FY21), Rs 1,690.49 Cr / Rs 162.81 Cr (FY22), Rs 2,364.09 Cr / Rs 266.09 Cr (FY23) and Rs 1,969.74 Cr / Rs 241.90 Cr (Q3 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 9.64 and average RoNW of 27.37% for last three fiscals. Issue is priced at a P/BV of 7.55 as per NAV of 59.86 as on 31.12.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 66.42, 40.64, 37.20 and 33.53 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Four lead managers are associated with this IPO, and have handled around 44 IPOs in last three fiscals. Kotak Mahindra Capital Company Limited: This is 22nd Main Board IPO from this BRLM. From last 10 Main Board IPOs, all opened Above issue price on the day of listing. As of now, from last 10 Main Board IPOs, all are trading above issue price. (As on 29.04.2024) Citigroup Global Markets India Private Limited: This is 8th Main Board IPO from this BRLM. From last 7 Main Board IPOs, one opened below issue price and remaining opened above or at par issue price on the day of listing. As of now, from last 7 Main Board IPOs, one is trading below issue price and remaining are trading above issue price. (As on 29.04.2024) J.P. Morgan India Private Limited: This is 13th Main Board IPO from this BRLM. From last 12 Main Board IPOs, six opened below issue price and remaining opened above or at par issue price on the day of listing. As of now, from last 12 Main Board IPOs, four are trading below issue price and remaining are trading above issue price. (As on 29.04.2024) Nomura Financial Advisory and Securities (India) Private Limited: This is 5th Main Board IPO from this BRLM. From last 4 Main Board IPOs, two opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 4 Main Board IPOs, one is trading below issue price and remaining are trading above issue price. (As on 29.04.2024) As per financials, Indegene Limited has shown good growth, RoNW is 25.02% and P/E is respectively 66.42, 40.64, 37.20 and 33.53 as per FY22, FY23, TTM and annualised FY24 earnings, So, issue looks fully priced. Company is in the business of digital-led commercialization services for the life sciences industry. The growth of the sector will be good as companies are increasing research related expenses. Performance of BRLMS are good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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