Sagility India Limited, a pure-play healthcare-focused services provider, is offering its Initial Public Offering (IPO) in the Indian stock market. The company provides technology-enabled business solutions and services to clients in the U.S. healthcare industry, including payers (health insurance companies) and providers (hospitals, physicians, and medical device companies).

The Sagility India IPO is a Book Built Issue amounting to ₹2,106.60 Crores, consisting entirely of an Offer for Sale (OFS) of 7,021.99 Lakh shares by the promoter selling shareholders. The price band for the IPO is set between ₹28 and ₹30 per equity share. At the upper price band of ₹30, the market capitalization of Sagility India is expected to be ₹14,043.98 Crores.

The subscription period for the IPO opened on November 5, 2024, and closed on November 7, 2024. The allotment date is November 8, 2024, and the listing date is expected to be November 12, 2024 on both the BSE and NSE.

IPO Details

The lot size of the IPO is 500 shares, with retail investors required to invest a minimum of ₹15,000 for 500 shares. High-Net-Worth Individuals (HNIs) need to apply for 14 lots (420 shares), amounting to ₹2,10,000.

The IPO is being managed by ICICI Securities Limited, IIFL Securities Limited, Jefferies India Private Limited, and J.P. Morgan India Private Limited, while Link Intime India Private Limited is the registrar for the issue.

Grey Market Premium and Subscription Status

The Grey Market Premium (GMP) for the Sagility India IPO is currently ₹0, indicating no significant listing gains expected based on current market conditions. The GMP is highly speculative and should be treated for educational and informational purposes only, as it reflects unorganized trading before the official listing.

On November 7, 2024, the IPO was subscribed 3.20 times, which is a strong indicator of market interest. Anchor investors raised ₹945.40 Crores at the upper price band of ₹30 per share, with 31,51,34,668 equity shares allocated to them. The allocation to anchor investors was conducted in consultation with the Book Running Lead Managers, showcasing strong support from institutional investors.

Financial Performance of Sagility India

Sagility India has shown steady financial growth over the past few years. For the fiscal year 2024, the company reported:

• Revenue from operations of ₹47,815.04 Million
• EBITDA of ₹11,160.37 Million
• Profit After Tax (PAT) of ₹2,282.66 Million

The company’s pre-issue EPS stands at ₹0.53, with a post-issue EPS of ₹0.48. The pre-issue P/E ratio is 56.60x, while the post-issue P/E ratio is 62.5x. The Return on Equity (RoE) for FY24 is 3.54%, indicating a moderate level of profitability. While the company is growing, its profitability margins are not exceptionally high compared to other listed peers.

Sagility India IPO Review

Despite the grey market premium showing no significant price discovery, the company’s strong financials and the solid subscription rate are indicative of investor confidence in the long-term growth prospects of Sagility India. The company operates in a crucial and expanding market, with technology solutions playing a pivotal role in healthcare services. However, with a post-issue P/E ratio above 60, the IPO appears fairly priced.

Given the lack of expected listing gains and moderate profitability, we recommend investors to avoid the Sagility India IPO if seeking quick listing profits. However, for long-term investors, Sagility India offers an opportunity to gain exposure to the growing U.S. healthcare technology services sector.

For more insights on upcoming IPOs and investment opportunities, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

To track IPO subscription updates and allotment status, follow us on Finance Saathi Telegram Channel Finance Saathi Telegram Channel and join our Trading with CA Abhay Telegram Channel Trading with CA Abhay Telegram Channel.

To begin your stock market journey and apply for the Sagility India IPO, open a free demat account in Choice Broking FinX Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.