Indegene IPO: 10 key risks investors should know before subscribing to ₹1,842-crore issue

With an impressive response across categories, the Indegene IPO has been fully booked on its first day itself. The category for non-institutional investors fetched 4.13 times subscription, while the portion for retail investors got subscribed 1.50 times. The quota for employees received 1.31 times subscription. Indegene IPO subscription status is 1.67 times on day, as per BSE data.

Qualified institutional buyers portion has been booked 5%. Indegene IPO, which opened for subscription today (Monday, May 6) will close on Wednesday, May 8.

With regard to drug development and clinical trials, regulatory filings, pharmacovigilance and complaints management, and product sales and marketing, the company offers digitally led commercialisation services to the life sciences sector, which includes biopharmaceutical, emerging biotech, and medical device companies.

Also Read: Indegene IPO opens: GMP, subscription status, review, price, date, lot size, other details. Apply or not?

There were sixty-five active clients of the business as of December 31, 2023. With operating centres spanning Europe, Asia, and North America, the organisation provides them with solutions. They can deliver our solutions at scale around the globe because to their in-house created proprietary platforms based on machine learning (ML) and artificial intelligence (AI).

The 1,841.76 crore Indigene IPO consists of an offer-for-sale (OFS) of 23,932,732 equity shares by the investor selling shareholder, in addition to a fresh issuance of 760 crore.

Also Read: Indegene IPO: Issue booked 1.30x on Day 1, so far. NII, retail portion oversubscribed; check GMP, subscription status

 Indegene IPO details.

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Indegene IPO details.

Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):

  • Since the company’s whole concentration is on the life sciences sector, it might be negatively influenced by trends, outsourcing, and other variables that are specific to the life sciences sector.
  • The company’s business and profitability are dependent on factors affecting the life sciences industry and their ongoing relationships with these key clients, as they are primarily focused on the life sciences sector and owe a substantial amount of their business to a select group of large clients located in North America and Europe.
  • Potential investors might not be familiar with the revenue and business concepts.
  • The bulk of the company’s income comes from its subsidiaries. Any interruptions to the business activities of one or more of their subsidiaries might have a negative impact on their operations, finances, and overall company performance.
  • The activities in the life sciences sector are very competitive, and it is hard to forecast their future.

Also Read: Indegene IPO opens next week. GMP, review, price, other details of upcoming IPO in 10 points

  • It’s possible that the catastrophe recovery and business continuity strategies are insufficient. The organisation’s business, financial situation, and operational outcomes might be negatively impacted if an interruption materializes that was not anticipated in their business continuity and disaster recovery plans, or if they are unable to guarantee the timely restoration of critical services.
  • Their margins could change as a result of timing delays in revenue recognition.
  • The company’s commercial prospects, reputation, and future financial performance may suffer if it is unable to control attrition and draw in and keep qualified personnel.
  • The business, financial condition, operating performance, and cash flows of the organisation might be negatively impacted if they underbid their work orders, over their budgeted costs, fail to get clearance for, or encounter delays in documented modification orders.
  • There have been times when their company has neglected to pay statutory obligations. Any more late payments of statutory obligations may result in fines from the relevant government agencies, which might seriously harm their cash flows and financial situation.

Also Read: Indegene IPO opens next week. GMP, review, price, other details of upcoming IPO in 10 points

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 06 May 2024, 05:21 PM IST

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