The Indegene IPO has officially begun, with the public issue being completely subscribed on the very 1st day of bidding.

The Indegene IPO has officially begun, with the public issue being completely subscribed on the very first day of bidding.

Indegene IPO

The subscription for the Indegene IPO began on May 6 and by the end of the first day, it was oversubscribed by 1.32 times. Investors showed great interest in the IPO, bidding for 3.8 crore equity shares, which exceeded the total issue size of 2.88 crore shares, as per the data from the stock exchange.

The bidding game was dominated by non institutional investors, as they managed to buy a whopping 2.92 times the reserved portion. On the other hand, retail investors were not far behind, purchasing 1.33 times the portion that was set aside specifically for them. As for the employees, they also showed their interest by buying 1.07 times their allocated portion.

However, the issue failed to gain traction among QIBs, as they only subscribed to a meager 3 percent of their allocated portion.

Indegene plans to utilize the funds raised from the fresh issue to pay off the debts of its subsidiary, ILSL Holdings Inc. Additionally, the company will allocate a portion of the proceeds to meet the capital expenditure needs of another subsidiary, Indegene Inc. Moreover, the remaining funds from the fresh issue will be allocated for general corporate purposes. The IPO, valued at Rs 1,842 crore, comprises a combination of fresh issue and offer for sale by existing shareholders. The price range for the shares in the IPO is set at Rs 430-452 per share.

Indegene, supported by private equity firms Carlyle and Nadathur Fareast, managed to raise Rs 548.78 crore from anchor investors on May 3, just before its IPO. Around 30 percent of the IPO was already reserved, attracting notable investors like Smallcap World Fund Inc, Abu Dhabi Investment Authority, American Funds Insurance, Custody Bank of Japan, Destinations International Equity Fund, East Bridge Capital Master Fund, and Copthall Mauritius Investment.

Shares in the unofficial grey market were being traded at a whopping 57 percent higher than the initial price, indicating that the company’s potential listing price could reach around Rs 714. The grey market operates outside the official channels, allowing shares to be traded well before the subscription period begins and even after the listing day.