सोमवार से Indegene का IPO खुल गया है. Indegene IPO का फ्यूचर प्लान और बिजनेस मॉडल क्या है? कहां होगा IPO से जुटाई रकम का इस्तेमाल? कंपनी के चेयरमैन & CEO, Manish Gupta और CFO, Suhas Prabhu से GoodReturns की बात.
#IPO #IndegeneIpo #IPOalert
~PR.147~ED.148~GR.121~HT.96~
#IPO #IndegeneIpo #IPOalert
~PR.147~ED.148~GR.121~HT.96~
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NewsTranscript
00:00Hi, this is Bhavna and you are watching GoodReturns.
00:02It is the first day of the week and many IPOs have opened today.
00:05One of them is Indigene's IPO.
00:07It is a very unique IPO and unique because the company has no competition.
00:12The company is a very unique company and provides very unique solutions.
00:16It is the only company in the field.
00:19Bio Pharmaceutical Emerging Biotech and Medical Devices
00:22Indigene's IPO will open on 6th May and close on 8th May.
00:27In the IPO of Rs. 1,841.76 crore, fresh shares up to Rs. 750 crore will be issued.
00:34The investors and promoters present will send Rs. 2.93 crore equity shares through OFS i.e. Offer for Sale.
00:42The company has decided a price band of Rs. 430 to Rs. 452.
00:47On 3rd May, the company had collected Rs. 548.77 crore from anchor investors.
00:53In this, 36 anchor investors have been allotted Rs. 1,21,41,102 equity shares for Rs. 452 per share.
01:05The company is getting a great response on the grey market.
01:08The company's share is trading with a premium of Rs. 262 which is 57.96% above its price band.
01:17Today is the first day of the IPO.
01:19The management is joining us.
01:22We will get to know more about the company, its industry, risk factors, strength etc.
01:29We have with us Mr. Manish Gupta, Chairman and CEO and Mr. Suhas Prabhu, CFO, Indigene Limited.
01:36Sir, welcome to both of you and thank you so much for joining us.
01:40Thank you for having us.
01:42Thank you for inviting me to the show.
01:46Mr. Manish, I would like to get to know about the company's business model.
01:53We are a very unique company.
01:5625 years ago, when we started the company, our hypothesis was that if we bring in deep technology expertise along with deep medical expertise and healthcare expertise,
02:10then we can solve many problems in the healthcare sector.
02:15Right now, our team size is 5200 and it is spread all over the world.
02:21In this 5200, 20% people come from medical backgrounds.
02:26They are medical doctors, PhDs and pharmacologists.
02:29On one hand, they work with data scientists, data engineers, software engineers and analytics professionals.
02:36On the other hand, they work with brand managers, brand strategists, omnichannel orchestrators, modular content leads, art directors, creative directors etc.
02:53Where will you use this fund?
02:55We are raising 760 crores as the primary proceeds of this offer.
03:04The utilization of these funds would be primarily towards repayment of a loan in our US subsidiary, which is approximately 391 crores.
03:15And about 103 crores is meant for further expansion in the future, both in India and outside India.
03:25And finally, the balance, which is approximately 35% is for general corporate use, including inorganic opportunities that the Indian team may come across in the future.
03:38If we talk about revenue growth, we have seen good growth in the last three years.
03:43If we talk about 2021-2023, the revenue has jumped from 966 crores to 2306.1 crores.
03:52What is the reason behind this sudden growth?
03:55And will this growth continue in the future?
03:58Bhavna, I will start with this.
04:00We work in a very large sector.
04:03The life science industry is a sector of more than 1.8 trillion dollars.
04:10And this should be more than 2 trillion by 2026.
04:17In this sector, operational spend, in the areas where we work, clinical trials, regulatory and medical affairs, sales and marketing, pharmacovigilance, there is a lot of spend.
04:29Again, by 2026, it should be around 200 billion dollars.
04:35In all these spends, the industry is growing. Spends are increasing.
04:40And the spend in this sector is shifting towards digital.
04:46This is a very big trend.
04:48And our company has been focused on domain expertise, technology expertise, and digital expertise from the beginning.
04:58The industry is rapidly adopting digital.
05:02This is our growth rate.
05:04And our thesis is that in this industry, there will be more and more digital adoption.
05:12This is a little behind the industry.
05:14Digital adoption.
05:15This industry will adopt more and more digital.
05:18It will grow.
05:19It will outsource more.
05:22With our strengths of domain expertise, technology expertise, and a very attractive client base, we have been working with the world's 20 largest pharma companies for many years.
05:33We have passive active customers.
05:35We have a higher probability of taking more market share.
05:40I would like to understand the ratio between our Indian clients and our international clients.
05:46What is their ratio?
05:47Look at our revenue.
05:49It closely mirrors the spend of the global life science industry.
05:55As I said, there is a lot of spend in all these areas.
06:01The spend of the United States and North America is about 65%.
06:06In the overall spend.
06:08Our revenue is 66% from North America.
06:11Right.
06:1225% of the spend is in Europe.
06:1530% of our business comes from Europe.
06:184% of our business is from the rest of the world.
06:21In which China, Japan, India, all countries are included.
06:261% is from India.
06:30I have a question related to this, Mr. Manish Gupta.
06:33The whole business of the company is focused on the life sciences industry.
06:37Second, as you said about the business, there is a contribution of North America and Europe's big clients.
06:43In the future, if there is a factor that impacts the life sciences industry.
06:48Or if your client is based in North America and Europe.
06:51There are some problems related to your contract.
06:54Do you consider these two factors as risks for the growth of the company?
06:58What are your plans to handle this?
07:01We have disclosed our risk factors.
07:05And of course, what you said in some things will be in the risk factors.
07:10Life science sector is a very big sector.
07:15And it is a very important sector for everyone.
07:18And this sector is very important for humanity.
07:22There are advancements in this sector.
07:24Rather than threats.
07:25Science is progressing.
07:27Cell therapy, gene therapy, CRISPR.
07:29New advancements are coming.
07:31If you look at the drug pipeline.
07:33The drug pipeline is really rich.
07:36In the next few years, the number of drug launches is supposed to be very high.
07:41In this sector, we are working with 20 big companies.
07:46Apart from that, we have 45 more customers.
07:49And we are expanding with all of them.
07:52So all in all, we feel good about our position.
07:56Okay, Mr. Prabhu, my next question is from you.
07:59I was reading somewhere in this field.
08:01Is there no competition?
08:03So you are a unique company in this field.
08:06In future, how do you see if there is any competition?
08:10Will it have any impact on your growth?
08:13As Manish already mentioned, this is a very large industry.
08:18The spends itself as per the Everest report which we have quoted in our RHP.
08:25Is north of 156 billion dollars today.
08:30It is expected to grow to 201 billion in 2026.
08:35So as the spends are also growing, there would be room for multiple players.
08:42There are already players who are either life science specialists or CROs or ad agencies.
08:49And in certain cases, even IT companies which provide some parts of these services.
08:54But in a growing market and given the things that we bring together.
09:01And we believe we are the only unique integrated provider here.
09:05We believe we are in a strong position to capture that expansion of the market going forward also.
09:12Yeah, very well. Sir, what are your plans for future acquisitions, Mr. Prabhu?
09:17So future acquisitions, if you look at our track record, we have done about 13 acquisitions over the last many years.
09:24But I would like to highlight that these have been not financial bulk up transactions.
09:29These are specialized capability acquisitions, what you can call tuck-in acquisitions.
09:37Which you integrate with the existing offering.
09:40And take a more holistic offering to our customers.
09:45And add more value to both the organization and the customer organization.
09:51So this is how we have approached acquisitions in the past.
09:55And we would want to continue in the same path going forward.
10:02So we would look at businesses which bring in new kinds of capabilities in the existing areas.
10:09A little adjacent, making it a little more holistic.
10:13Maybe even technologies as things are evolving.
10:16Because a lot of new things keep evolving.
10:20And things which are relevant and fit in well with the existing business of Indigene.
10:25Is what we would continue to focus on.
10:28Yeah, absolutely. Sir, Manish Gupta, what will be your growth strategy in the near future?
10:34Our growth strategy will be, primarily if I summarize it in one sentence.
10:42So what we are doing, we have to do more of it, we have to do better.
10:46We have to give more value to the existing customers.
10:49We have to give them bigger solutions, better solutions.
10:52And we have to give them more value. That's number one.
10:57The second thing is, the areas we are operating in, we will deepen them.
11:01We will deepen our expertise, specialize and broaden it.
11:07That's the other one. We will continue to look at acquisitions to expand our capabilities.
11:12We are seeing a very good response on the grey market.
11:16We are seeing around 54% on this.
11:19So what are your expectations from the listing?
11:22We think about our company, that this company will be 5 years old, 10 years old.
11:29And our excitement stems from that.
11:33We want to make a company that is known for its specialization, expertise, and intellectual property.
11:45And we are seeing that opportunity.
11:47The listing will provide us with a platform where we will be more known.
11:52It will be easier to attract talent.
11:55We will get currency for acquisitions. And that is what is exciting us in this journey.
12:00Sir, people don't know much about the industry of life sciences.
12:04So I would like to ask the viewers to get more knowledge.
12:10So I would like to ask you, how do you see the future of this industry?
12:15How is this industry going to grow in the future?
12:18Healthcare sector in general, and life science in particular, these sectors will definitely grow.
12:26And they are connected to very basic things.
12:29They are connected to demographics.
12:31The ageing population is increasing all over the world.
12:34Chronic diseases are increasing.
12:36Disposable income is increasing.
12:38All these factors contribute to increase the demand for healthcare.
12:47On the other hand, science is progressing very fast.
12:50Very interesting therapies are coming.
12:52Like I said, cell therapy, gene therapy, CRISPR.
12:55And all these advancements will get better in a few days.
13:01Technology offers an opportunity to bring all these things to patients faster.
13:09So we believe that the prospects of this industry are very good in the future.
13:14It will continue to grow and it is very important for all of us.
13:18Mr. Prabhu, my last question.
13:20Tell me one good reason why investors should subscribe to this IPO.
13:24We have built an institution and organization over the last 25 years that we are very proud of.
13:34We have a good financial profile.
13:37A great set of people that have stuck around for a very long time.
13:42Both management and marquee board.
13:46And a very enviable customer base.
13:51So all of these coming together is what is exciting for me and all Indigenous people.
14:01And we would like to share that journey with the public at large.
14:07Mr. Prabhu, do you want to add something?
14:10I was going to add.
14:12It will be very difficult to give one reason for Suhas.
14:15There are many reasons.
14:16We believe there is an opportunity for value creation.
14:20And the reason we are going public is we would like to share it with the public in general.
14:28Yeah, perfect.
14:30Fair enough.
14:31Okay, thank you so much, sir.
14:32Thank you for giving your time.
14:34And it was really nice talking to you.
14:37Thank you so much.
14:38Thank you.
14:39Thank you.
14:40So if you want a good profit in the long term or you want to gain on a good listing,
14:46then you can definitely subscribe to this IPO.
14:49The management of the company, the promoters of the company are very experienced.
14:53The finances of the company are also very good.
14:56So you can definitely subscribe to this IPO.
14:59But still good returns.
15:00So I will give you this advice that you subscribe to any IPO or invest anywhere.
15:06So you can do your own research once and also take the advice of your financial advisor.
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15:20Thank you so much.