Shares of Indegene Ltd on Monday staged a solid debut on Dalal Street, listing at a premium of 46.95 per cent over their issue price of Rs 452 apiece. The stock, however, gave up a significant chunk of its gains as the session progressed. It slipped 20 per cent from its high price of Rs 659.70 to trade at Rs 527.80.
The initial public offering (IPO) of Indegene was open between May 6 and May 8. The Bengaluru-based company had offered shares in the range Rs 430-452 per share with a lot size of 33 shares.
The company raised around Rs 1,841.76 crore via its primary offering, which included a fresh share sale of Rs 760 crore and an offer-for-sale (OFS) of up to 1,68,14,159 equity shares.
The initial share sale was subscribed 69.91 times. The quota for qualified institutional bidders (QIBs) was booked 197.55 times. The category for non-institutional investors (NIIs) was subscribed 55.07 times. The portions reserved for retail investors and employees saw bidding for 7.95 times and 6.48 times, respectively.
Indegene is a digital services provider for the life sciences industry. The company assists with drug development, clinical trials, regulatory submissions, pharmacovigilance and complaints management.
Shivani Nyati, Head of Wealth at Swastika Investmart, said, "Indegene defied market negativity with a spectacular debut. This impressive performance comes on the back of a strong investor response, with the IPO receiving an overwhelming 70 times subscription. The company's robust technology portfolio and focus on digital-led services position it well for future success in a rapidly evolving market."
Long-term investors are suggested to hold their position by keeping a stop loss and continue monitoring the company's performance and market conditions, Nyati added.
Prashanth Tapse, Senior VP (Research) at Mehta Equities said, "We believe the healthy listing is justified due to its virtual monopoly in its services tailor made for the life sciences industry and its deep domain expertise in pharmaceutical marketing, clinical trials, pharmacovigilance, medical and regulatory affairs, and health informatics which is benefiting its clientele base across the value chain."
Post-listing, we see the valuations are getting stretched and considering market selloff mood and other parameters, we are recommending conservative investors to book profits, while risk taking investors can continue holding for long term, Tapse further stated.