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Indegene Limited IPO Company Profile:

Indegene Limited is a “digital-first” commercialization company focused exclusively on the global life sciences industry. The company’s solutions enable biopharmaceutical, emerging biotech, and medical device companies to develop products, launch them in the market, and drive sales through their life cycle in a more effective, efficient, and modern manner. The company achieves this by combining over two decades of healthcare domain expertise and fit-for-purpose technology. Its portfolio of solutions covers all aspects of commercial, medical, regulatory, and R&D operations of life sciences companies. The company has established client relationships with 19 of the 20 largest biopharmaceutical companies in the world by revenue for the Financial Year 2021, having earned more than 70.00% of its total revenue from continuing operations for each of the Financial Years 2022, 2021, and 2020 from these 19 customers.

Positioned at the intersection of healthcare and technology, our solutions span across different stages of the commercialization lifecycle of drugs and medical devices. Our Enterprise Commercial Solutions and our Omnichannel Activation solutions cater to the commercial functions of life sciences companies while our Enterprise Medical Solutions and Enterprise Clinical Solutions cater to their medical and R&D functions.


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    Indegene Limited IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹2 per share
    Price Not Available
    Lot Size Not Available
    Issue Size Not Available
    Fresh Issue [●] shares

    (aggregating up to ₹950 Cr)

    Offer For Sale 36,291,497 shares

    (aggregating up to ₹[●] Cr)

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 75% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 10% of the Offer

    Indegene Limited IPO Solutions:

    • Enterprise Commercial Solutions:

      Indegene Limited’s Enterprise Commercial Solutions primarily involve assisting life sciences companies with their digital marketing operations. Sales and marketing was the largest life sciences operations expenditure segment in 2021. Service providers in this segment assist life sciences companies by creating customized marketing plans and campaigns by generating promotional content based on approved clinical trial data. The company’s Enterprise Commercial Solutions helps life sciences companies drive scale efficiency as well as technology and analytics-enabled personalization of their engagement strategies for healthcare professionals (“HCPs”) and patients and operations.

    • Omnichannel Activation:

      Indegene Limited’s Omnichannel Activation 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. Here, the company plays the role that has traditionally been played by medical representatives who promote products to HCPs through face-to-face interactions. However, using digital technologies and proprietary analytics, it seeks to achieve the same outcome at higher efficiencies and reduced costs. The channels the company uses include emails, virtual sales representatives, social media, and other digital platforms.

    • Enterprise Medical Solutions:

      Under Indegene Limited’s Enterprise Medical Solutions, the company establishes centers of excellence (“CoEs”) to consolidate large-scale regulatory and medical operations for its clients. CoEs comprise multidisciplinary teams that work on one or more client engagements. Through these CoEs, the company assists with: (i) writing medical content, regulatory submissions, product labels, and other medical information; (ii) reviewing medical communications to ensure compliance with regulatory guidelines and ethical practices; (iii) pharmacovigilance services, i.e., the monitoring and processing of adverse occurrences arising from the use of biopharmaceutical products; and (iv) conducting real-world evidence (“RWE”) based medical research to support market access and pricing strategies.

    • Others:

      Indegene Limited also offers Enterprise Clinical Solutions and consultancy services. The company’s Enterprise Clinical Solutions help drive efficiencies in life sciences’ drug discovery and clinical trial operations. These solutions include digitally-enabled patient recruitment for clinical trials, clinical data management, and assistance with regulatory submissions. The company leverages real-world data (“RWD”) to help identify the right sites for clinical trials and relevant patient cohorts to recruit, thereby fast-tracking site selection and patient recruitment.

    Indegene Limited IPO Revenue from Solutions:

    Segment 3M of FY-23(in cr.) % FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % CAGR
    Enterprise Commercial Solutions 305.79 58.69% 1016.16 61.04% 564.58 58.43% 343.77 53.47% 71.9%
    Omnichannel Activation 60.94 11.70% 141.42 8.50% 78.74 8.15% 61.36 9.54% 51.8%
    Enterprise Medical Solutions 130.28 25.01% 431.56 25.93% 305.01 31.57% 237.81 36.99% 34.7%
    others 23.98 4.60% 75.48 4.53% 17.95 1.86% N.A. 0.00% N.A.
    Total 520.99 100.00% 1664.61 100.00% 966.27 100.00% 642.93 100.00% 60.9%

    Indegene Limited IPO Financial Analysis:

    Particulars 3M of FY-23(in cr.) FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue from Operations 520.98 1664.61 966.27 642.93 37.3%
    Other Income 18.73 25.89 30.65 3.45
    Employee Cost 312.14 1014.34 535.60 369.92
    Other expenses 100.48 363.35 200.15 129.36
    EBITDA 127.08 312.81 261.18 147.10 28.6%
    EBITDA margin% 24.39% 18.79% 27.03% 22.88%  
    Depreciation 9.80 33.45 25.55 19.34
    Interest 2.37 5.96 6.96 8.84
    Share of (loss)/profit in an associate 0.00 0.00 -0.20 0.53
    Exceptional items (net) 0.00 -46.90 2.99 -43.66
    PBT 114.91 226.50 231.46 75.80 44.0%
    Total tax 29.09 63.68 45.78 26.12
    PAT 85.82 162.82 185.68 49.68 48.5%
    PAT margin% 16.47% 9.78% 19.22% 7.73%  

    Major Shareholders of Indegene Limited:

    S.NO. Name of the Shareholder No. of Shares % of the pre-Offer shareholding
    1 Manish Gupta 22,575,672 10.19%
    2 Dr. Rajesh Bhaskaran Nair 20,301,204 9.16%
    3 Anita Nair 1,376,298 0.62%
    4 Vida Trustees Private Limited (Trustee of Fig

    Tree Trust) in its capacity as a partner of Group

    LifeSpring

    9,188,802 4.15%
    5 BPC Genesis Fund I SPV, Ltd 17,894,772 8.08%
    6 BPC Genesis Fund I -A SPV, Ltd 9,281,916 4.19%
    7 CA Dawn Investments 46,068,750 20.79%
    8 Nadathur Fareast Pte. Ltd 52,700,256 23.78%
    9 Dr. Sanjay Suresh Parikh 11,991,672 5.41%
    10 Gaurav Kapoor 6,266,736 2.83%
    11 Anand Kiran Prafula Chandra Nijegal 5,211,360 2.35%
    12 Aarabhi Partners Consultant LLP Trust 5,040,000 2.27%
    13 Chestnut Associates (PTC) ltd as a trustee of N foundation, Trust 3,439,800 1.55%
    14 Sycamore Philanthropy(PTC) as trustee of Aalamaram Foundation, Trust 3,439,800 1.55%
      Total 214,777,038 96.92%

     

    Indegene Limited IPO Offer for Sale Details:

    S. No. Name of the Selling Shareholder Number of Equity Shares

    being offered in the Offer for Sale (Up to)

    1. Manish Gupta 1,118,596 Equity Shares
    2. Dr. Rajesh Bhaskaran Nair 383,818 Equity Shares
    3. Anita Nair 1,151,454 Equity Shares
    4. Vida Trustees Private Limited (Trustee of Fig

    Tree Trust) in its capacity as a partner of Group

    LifeSpring

    8,030,000 Equity Shares
    5. BPC Genesis Fund I SPV, Ltd 5,545,093 Equity Shares
    6. BPC Genesis Fund I -A SPV, Ltd 2,876,208 Equity Shares
    7. CA Dawn Investments 17,186,328 Equity Shares

    Indegene Limited IPO Acquisitions:

    S. No. Name of the acquired company/selling entity Description of the acquired company Geography served Year and month of acquisition
    1 Cult Health A full-service healthcare marketing agency North America October 2022
    2 Medical Marketing Economics, LLC Value-based pricing, market access, and reimbursement strategy firm North America and Europe August 2021
    3 DT Associates Limited A digital transformation and customer experience (“CX”) consulting firm. North America and Europe August 2019
    4 Wincere, Inc. A company providing clinical data management services. North America December 2016
    5 Encima Group, Inc. A company offering marketing automation and analytics services. North America November 2016
    6 Skura Corporation Inc A company offering omnichannel sales enablement software products. North America April 2016
    7 Vantage Point Healthcare Information Systems, Inc A population health analytics platform North America October 2015
    8 Total Therapeutic Management, Inc A healthcare quality improvement and clinician engagement business North America December 2013
    9 Aptilon Holdings, Inc. A company engaged in building customer engagement technologies North America November 2012
    10 MedCases LLC A company offering continuing medical education (“CME”) on digital platforms North America August 2006
    11 Medsn, Inc. A biopharmaceutical sales training company North America September 2005

    Indegene Limited IPO Strengths:

    • Indegene Limited’s domain expertise assists it in contextualizing the use of technology to, among other things, optimize sales and marketing costs, drive omnichannel activation at scale, enable faster recruitment of patients for clinical trials, and accelerate the time taken to make regulatory submissions.

    • Indegene Limited’s understanding of the healthcare domain enables it to efficiently modernize and digitize the key functions involved in the life sciences commercialization process. This requires in-depth domain expertise of the journey of a drug or medical device from the research lab to the market to be able to organize and analyze scientific and clinical data, navigate the regulatory landscape and the ethical guidelines within which the industry operates, and develop medical content for healthcare professionals, patients, and payers. The company’s teams have extensive healthcare expertise, with 21.88% of its delivery employees as of June 30, 2022, having healthcare-related educational backgrounds including MD, MBBS, Ph.D., BDS, MPharm, and BPharm degrees

    • Over the years, Indegene Limited has developed a suite of proprietary tools and platforms, including applications that automate and create AI-based efficiencies using AI, ML, NLP, and advanced analytics capabilities that are core components of the company’s solutions. These proprietary “NEXT”-branded tools and platforms assist in driving transformation across the commercialization lifecycle of biopharmaceutical products and medical devices. The company aims to drive efficiency, effectiveness, and quality in various aspects of the R&D and commercialization processes of life sciences companies.

    • Indegene Limited has high client stickiness and retention since its solutions, once implemented, are deeply integrated with its client’s workflow. Due to the sticky nature of the solutions, recurring revenues account for a high proportion of the total revenues. Indegene Limited’s retention rates that are revenues from existing customers as a percentage of revenues from such customers earned in the previous year were 159.89%, 129.90% and 113.30% for the Financial Years 2022, 2021 and 2020, respectively.

    • Indegene Limited is able to offer end-to-end solutions across multiple regions to cater to the client’s requirements because of its streamlined global processes and the scalable nature of its solutions. This is assisted by the employees who have spent significant amounts of time understanding different markets and by the company’s acquisitions, which have helped it in accessing various markets. Indegene Limited’s local presence in various countries provides it with specialized knowledge of the regional market, culture, regulatory requirements, and localized medical nuances, such as medical terminology. This enables it to work with the clients across time zones and languages, leading to better client engagement.

    Indegene Limited IPO Risk Factors:

    • Indegene Limited’s clients are typically entitled to terminate both work orders and MSAs without cause with a notice period that generally ranges from 30 to 90 days. Clients are also typically permitted to reduce the scope of work by executing change orders. If the company’s client engagements are terminated or reduced in scope, it may have a negative impact on its business, cash flows, and results of operations.

    • A significant portion of Indegene Limited’s business is attributable to certain large clients located in North America and Europe. Any deterioration of their financial condition or prospects or any adverse changes in economic and political conditions in these regions may have an adverse impact on the business, results of operations, cash flows, and financial condition. Further, if the company fails to expand the size of its business with the existing clients or expand to new clients, or if it loses its large clients, the business, revenue, profitability, and growth will be adversely affected.

    • All of Indegene Limited’s revenues are earned from clients in the life sciences industry, a significant portion of which is attributable to clients in the biopharmaceutical industry. Consequently, demand for the company’s solutions and, in turn, the revenues, depend on, among other things: (i) the pace of growth of the life sciences industry; and (ii) trends in the life sciences industry, including outsourcing trends, healthcare reform and the pace of digitization. The company’s business may be adversely impacted by factors affecting the life sciences industry, including the growth of the overall life sciences industry, outsourcing, and other trends.

    • Indegene Limited’s clients face intense competition from lower-cost generic products and other competing products, which may lower the amount that they spend on its solutions and could have an adverse effect on the business, results of operations, cash flows, and financial condition.

    Objects of the Offer:

    Indegene Limited proposes to utilize the Net Proceeds towards the funding of the following objects:

    • Repayment/prepayment of indebtedness of one of the Subsidiaries, ILSL Holdings, Inc.
    • Funding the capital expenditure requirements of the Company and the Material Subsidiary, Indegene, Inc.
    • Payment of consideration towards the acquisition of additional shares in DT Associates Limited by ILSL Holdings, Inc., a Subsidiary
    • General corporate purposes and inorganic growth

    Indegene Limited IPO Prospectus:

    Registrar to the offer:

    Link Intime India Private Limited

    Tel: +91 22 4918 6200

    E-mail: indegene.ipo@linkintime.co.in

    Investor grievance E-mail: indegene.ipo@linkintime.co.in

    Contact person: Shanti Gopalkrishnan

    Website: www.linkintime.co.in

    SEBI Registration: INR000004058