New Delhi, April 29 -- Private equity firm Carlyle and Brighton Park Capital, a private investment firm that specializes in software, information services, technology-enabled services and healthcare sectors, have tweaked their plan to monetise their three-year-old bet on an Indian digital services provider for healthcare companies.
The two private equity firms have slashed the quantum of stake they intend to offload from Indegene through the company's initial public offering. As against the original plan to offload a third of their holding in the company, the two are now looking to divest less than a fourth of their holding as part of an offer for sale.
Meanwhile, Indegene itself has cut the fresh issue size to Rs 760 crore from Rs 950 crore as per the original plan.
The two investment firms had jointly bet $200 million (around Rs 1,500 crore then) on Indegene in March 2021, via a secondary sale from existing shareholders and a primary investment into the company.
Both had trimmed their stake a year ago by selling a small chunk of their holding to Avendus Future Leaders Fund.
They are virtually taking out half their principal investment in rupee terms in the proposed IPO of the company, twined with their partial exit last year.
Both the private investors are looking to generate 2.25x on their investment, translating into around 30-32% internal rate of return in local currency, as per VCCircle estimates.
This is far above the 20% benchmark that PE firms aim for in the country at the fund level.
In dollar terms, the IRR shrinks to around 27%, but remains far superior to the 15% benchmark returns in greenback.
Founded in 1998 by five first-generation entrepreneurs, Indegene has emerged as the leading digital transformation partner to the global life sciences industry. As of December 31, 2023, it had 5,181 full-time employees across 10 countries, of which 4,510 employees were delivery employees. Indegene provides technology platforms and commercialization services to pharmaceutical, biotechnology, and medical device companies.
It had previously raised early-stage capital from Infosys co-founder NS Raghavan.
Published by HT Digital Content Services with permission from VC Circle.