Indegene IPO Review: Indegene is coming up with its IPO issue of Rs. 1,841.76 Cr which will open on 6th May 2024. The issue will close on 8th May and be listed on the exchange on 13th May 2024. This article will analyze the GMP, financials, strengths and weaknesses of the Indegene Limited IPO Review 2024. Keep reading to find out!

Indegene IPO Review – Company Overview

Indegene logo

Indegene 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. 

These 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. Indegene provides solutions on all aspects of commercial, medical, regulatory and R&D operations of life sciences companies.  

The Company has established relationships with each of the 20 largest biopharmaceutical companies in the world by revenue. As of December 31, 2023, Indegene has a total of 65 active clients with 27 client who are billed ofr more than $1 Million and five clients who are billed for $ 10 Million each respectively.

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Indegene’s business can be divided into the following business segments:

  1. Enterprise Commercial Solutions: These primarily involve assisting companies with their digital marketing operations. Service providers in this segment assist life sciences companies by creating customized marketing plans and campaigns, expanding their reach to healthcare professionals (“HCPs”)
  2. Omnichannel Activation: These solutions help life sciences companies leverage a “digital first” approach for optimizing the last-mile promotion of biopharmaceutical products and medical devices to HCPs across multiple channels. 
  3. Enterprise Medical Solutions: Under the Enterprise Medical Solutions, Indegene assists Companies in writing medical content, product labels. They also review medical communications to ensure compliance with regulatory guidelines and provides pharmacovigilance services
  4. Others: Apart from Enterprise Commercial & Medical services, Indegene offers consultancy services. These may include solutions that will help increase efficiency in drug discovery, patient recruitment for clinical trials, clinical data management & assistance. 

Indegene IPO Review – About the Industry

The life sciences industry comprises entities engaged in the R&D, manufacturing and marketing of drugs & medical devices. The two main segments within this industry are the biopharmaceutical and medical devices segments: 

  1. Biopharmaceutical: This segment comprises of companies that discover, develop, manufacture, and sell drugs to cure, vaccinate, or alleviate symptoms of medical conditions or diseases.
  2. Medical devices: This segment comprises companies involved in the R&D, production, and sale of systems and devices of medical applications, to treat or diagnose diseases or medical conditions. 

The combined sales of the biopharmaceutical and medical devices segments was estimated at ₹138.3 trillion (US$1.8 trillion) in 2023, with biopharmaceuticals constituting 69% or ₹95.4 trillion (US$1.2 trillion). 

By 2026, the combined sales of the biopharmaceutical and medical devices segments are expected to reach ₹163.5 trillion (US$2.1 trillion) with biopharmaceuticals constituting 69% or ₹113 trillion (US$1.4 trillion). Life sciences operations spend has grown at a CAGR of approximately 6.7% from 2020 – 2022 and was estimated at approximately ₹12.0 trillion (US$156 billion) in 2022. The overall 

spends is expected to grow at a CAGR of approximately 6.5% to reach ₹15.5 trillion (US$201 billion) by 2026, driven by rise in aging population, increasing prevalence of chronic diseases and discovery of new diseases, among other factors. 

The historical growth rate (from 2020 to 2022) is higher than the forecasted growth rate (from 2022 to 2026) because historical growth was driven by the pandemic and was one-off. However, the overall growth trajectory and underlying factors remain intact. 

Indegene IPO Review – Financials

In FY23 Indegene reported a revenue of Rs. 2306 Cr, which increased by 39% from Rs. 1665 Cr in FY22. The Company has been scaling its revenue consistently at the rate of 55% CAGR since FY21.

Net Profits during the year grew at a rate of 63% from Rs. 163 Cr in FY22 to Rs. 266 Cr in FY23. Since FY21, Net Profit growth remained at 33% CAGR which is slightly lower than the revenue growth.

The Company’s EBITDA margins have contracted from 27% in FY21 to just 19.7% in FY23. The contraction of EBITDA margins has trickled down Net Profit Margins which have dropped from 19.2% in FY21 to 11.54% in FY23.

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Indegene IPO Review – Key Players 

Indegene has no listed Companies in India as well as globally. Hence, we cannot do a Peer-to-peer analysis of the Company.

Strengths of the Company 

  1. Domain expertise in Healthcare: The Company has a deep understanding of the healthcare domain which helps it efficiently modernize and digitalize the key functions in the life sciences commercialization process
  2. Robust digital capabilities: Over the years, Indegene has developed a suite of proprietary tools & platforms, including applications that automate & create AI-based efficiencies using AI, ML, and other advanced analytical tools.
  3. Strong Client Track record: The Company has long-standing relationships with biopharmaceutical leaders globally. It has consistently increased its client base from 44 in FY21 to 62 in FY23.
  4. Track record built via acquisitions: Since 2005, Indegene has built a strong enterprise on the back of multiple acquisitions in North America, including a fresh acquisition of Trilogy Writing & Consulting GmbH. This is a Company offering medical writing consultancy services which was acquired in March of 2024. 

Weaknesses of the Company

  1. Industry-related risk: The Company is solely focused on the life sciences industry and any impact to the respective industry can adversely impact the Company.
  2. Geographical concentration Risk: A majority of the Company’s client are located in North America & Europe. Hence, the business & profitability is majorly dependent on the performance of the respective geographies.
  3. Highly unpredictable Industry: The Life sciences operations industry is highly competitive. The Company is always competing for internal sales, marketing department, Information Technology etc….
  4. Delay in interest & loan repayments: The statutory auditors of Indegene pointed out of delay in interest amount by a subsidiary of the Company. Indegene itself reportedly delayed the deposit of Provident funds by the Company.

Indegene IPO Review – GMP

The shares of Indegene Ltd traded at a 37.39% premium in the grey market on 30th April 2024. The shares in Grey Market traded at Rs 621. This gives it a premium of Rs 169 per share over the cap price of Rs 452.

Indegene IPO Review – Key IPO Information

IPO SizeRs. 1841.76 Cr
Fresh IssueRs. 760 Cr
Offer for Sale (OFS) Rs. 1081.76 Cr
Opening date6 May 2024
Closing date9 May 2024
Face ValueRs. 2
Price BandRs. 430 - 452
Lot Size33 Shares
Minimum Lot Size1 Lot (33 Shares)
Maximum Lot Size13 Lots (429 Shares)
Min. InvestmentRs. 14,916
Listing Date13 May 2024

Promoters: Indegene is a professionally managed Company and the promoter is BCP Topco VII Pte. Ltd.

Book Running Lead Manager: Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, JP Morgan India Pvt Ltd, and Nomura Financial Advisory & Securities (India) Pvt Ltd

Registrar to the Offer: Link Intime India Pvt Ltd

The Objective of the Issue

  1. Rs. 391.33 Cr of the net proceeds will be utilized towards the repayment of debt of the subsidiary of Indegene.
  2. Rs. 102.916 Cr of the net proceeds will be utilized for funding the capital expenditure of the Company & its subsidiaries. The entire amount would be spent across the course of the next three years until FY27.
  3. The remaining amount will be utilized for general corporate purposes and to fund further acquisitions.


Indegene is a leading provider of digital-led commercialization services for the life sciences industry. The company has a strong track record, with established relationships with major biopharmaceutical companies globally. Its domain expertise, robust digital capabilities, and strategic acquisitions are some of its key strengths. 

However, the company faces risks associated with its industry concentration, geographical concentration, and intense competition. The IPO proceeds will be used for debt repayment, capital expenditure, and general corporate purposes. 

While the company’s financial performance has been impressive, with consistent revenue growth, the declining EBITDA and net profit margins are concerns. Overall, Indegene presents an opportunity in the growing life sciences industry but comes with its fair share of risks and challenges. So, will you be investing in the upcoming IPO of Indegene Ltd? Let us know below.

Written by Nasir Hussain

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