The Sagility India IPO launched on November 5 and will be open for public bidding until November 7, with a price range set between Rs 28 and Rs 30 per share. This IPO is entirely an offer for sale (OFS) by the promoter, Sagility B.V., totaling Rs 2,106.6 crore, meaning the proceeds will go to the selling shareholders rather than the company itself. Sagility’s goal with the IPO is to gain the benefits of listing, such as increased brand visibility, liquidity for shareholders, and an established public market for its shares.
On the first day of bidding, the IPO saw a 0.23 times subscription, and by 10:06 am on the second day, the subscription level reached 0.26 times, with bids for 10.16 crore shares against 38.70 crore shares available. The subscription is segmented with 75% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
The IPO has a minimum lot size of 500 shares for retail investors, requiring a minimum investment of Rs 15,000. For small NIIs, the minimum lot is 14 lots (7,000 shares), amounting to Rs 2,10,000, and for large NIIs, 67 lots (33,500 shares), totaling Rs 10,05,000.
Financial Performance and Market Potential
Sagility India has shown robust growth in recent years, with revenue from operations rising 12.7% to Rs 4,753.56 crore in FY24, compared to Rs 4,218.41 crore in FY23. Profit after tax (PAT) also surged by 50% to Rs 228.27 crore. The company, which specializes in technology-driven healthcare services for US payers and providers, acquired BirchAI in March 2024 to enhance customer support through AI technology.
Brokerages like Master Capital and Bajaj Broking have issued a “subscribe for long term” recommendation due to Sagility’s strong client base and expertise in the healthcare domain, even though the IPO is considered aggressively priced with a P/E ratio of 61.22 based on FY24 earnings. Currently, the grey market premium (GMP) remains at zero, indicating no additional listing gains expected.
The IPO allotment will be finalized on November 8, and the shares are expected to list on the BSE and NSE on November 12.
