Indegene Limited has filed its DRHP with SEBI. DRHP.Indegene, a digital-first commercialization company focused exclusively on the global life sciences industry has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company’s initial public offering comprises a fresh issue of up to ₹9,500 million and an offer for sale of up to 36.3 million equity shares by selling shareholders. The offer for sale comprises up to 2.7 million equity shares by individual selling shareholders (Manish Gupta, Dr. Rajesh Bhaskaran Nair, and Anita Nair), and up to 33.6 million equity shares by existing investors including Carlyle, Brighton Park Capital and the Nadathur Family Office. Indegene had raised US$200 million from The Carlyle Group and Brighton Park Capital in February 2021.
Link: https://investmentbank.kotak.com/downloads/indegene-limited-DRHP.pdf
The funds raised through the IPO are proposed to be utilized for debt repayment/prepayment, capital expenditure, payment of deferred consideration for one of its past acquisitions, funding inorganic growth and general corporate purposes.
Life sciences companies are increasingly outsourcing commercialization operations because of deficit of specialized talent and in-house digital capabilities, rising sales and marketing (S&M) and research and development (R&D) expenses, need to optimize regulatory and medical affairs processes, and increasing complexity in clinical trials. The industry lags other industries in digital adoption, offering a digital-first company such as Indegene significant opportunity for growth.
Indegene was founded in 1998 by five, first-generation entrepreneurs – Manish Gupta (IIT-BHU, IIM Ahmedabad), Dr. Sanjay Parikh (IIT Mumbai, John Hopkins), Dr. Rajesh Nair (IIM Ahmedabad), Gaurav Kapoor (ENPC Paris) and Anand Kiran (Birla Institute of Technology and BK School of Business Management, Ahmedabad). The company offers solutions that enable biopharmaceutical, emerging biotech and medical devices companies to develop products, launch them in the market, and drive sales throughout their life cycle. The company’s extensive portfolio of solutions, expertise in the healthcare domain as well as the use of new age emerging technologies has helped efficiently modernize and digitize the key functions involved in the life sciences commercialization process.
Indegene has a track record of creating value through acquisitions. The company has acquired and integrated 11 companies since inception including CultHealth, a US-based, full-service healthcare marketing agency in October 2022, Medical Marketing Economics, a US-based, value-based pricing, market-access and reimbursement strategy firm in 2021, and DT Associates, a UK-based, digital transformation and customer experience consulting firm in 2019.
As of 30-June-2022, Indegene had 52 active clients. Indegene’s clients include 19 of the 20 largest, global biopharmaceutical companies. Indegene derives 66% of its revenue from North America, 27% from Europe, and 7% from Rest of World. The company has been driving delivery excellence from six operational hubs and 16 offices located across North America, Europe and Asia.
Indegene reported revenue from operations of ₹1,665 Crores in FY2021-22, growing at a 61% CAGR from FY2019-20 to FY2021-22. It reported ₹521 Crores revenue from operations in three-month quarter ending June 30, 2022. The Company reported EBITDA of ₹266 Crores in FY2021-22, growing at a 60% CAGR from FY2019-20 to FY2021-22. It reported ₹ 127 Crores EBITDA in the three-month quarter ending June 30, 2022. Indegene also is one of the rare digital-first companies to be profitable at scale, reporting profit after tax of ₹163 Crores in FY2021-22, growing at an 81% CAGR from FY2019-20 to FY2021-22. It reported ₹ 86 Crores profit after tax in the three-month quarter ending June 30, 2022.
Kotak Mahindra Capital, Citigroup Global Markets India, J.P. Morgan India, Nomura Financial Advisory and Securities (India) are the Book Running Lead Managers to the issue.
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