Sagility India, a pure-play healthcare services provider, focuses on technology-enabled business solutions for clients in the U.S. healthcare industry. The company serves both Payers (health insurance companies) and Providers (hospitals, physicians, diagnostic and medical devices companies). Sagility India’s IPO is a Book Built Issue, raising ₹2,106.60 Crores, with an Offer for Sale (OFS) of 7,021.99 Lakh shares.

The subscription period opens on November 05, 2024, and closes on November 07, 2024, with a tentative listing date set for November 12, 2024. The share price band is ₹28 to ₹30 per equity share, which would lead to a market capitalization of ₹14,043.98 Crores at the upper price band. Retail investors can apply for a minimum of ₹15,000 (500 shares), and High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,10,000 (14 lots).

The IPO is managed by ICICI Securities, IIFL Securities, Jefferies India, and J.P. Morgan India, with Link Intime India as the registrar.

On November 07, 2024, Sagility India’s IPO was subscribed 3.20 times on the final day of the subscription period. The Grey Market Premium (GMP) is currently ₹0, indicating no significant listing gains expected.

Sagility India’s financials show robust revenue growth, with ₹47,815.04 Million in FY24, up from ₹42,360.60 Million in FY23. The company has also posted strong EBITDA growth, reaching ₹11,160.37 Million in FY24. However, its Profit After Tax (PAT) has improved significantly to ₹2,282.66 Million in FY24, from ₹1,435.72 Million in FY23 and a negative ₹46.71 Million in FY22.

In terms of valuation, Sagility India is issuing shares with a pre-issue EPS of ₹0.53 and a post-issue EPS of ₹0.48. The pre-issue P/E ratio stands at 56.60x, while the post-issue P/E ratio is 62.5x, which is relatively high compared to the industry average. The company's Return on Equity (RoE) for FY24 is 3.54%.

Despite the positive growth trajectory, the IPO is priced at a premium, and the Grey Market Premium suggests that the listing gains may be limited. Given the financials and the valuation, the IPO appears fairly priced but may not provide substantial listing gains or long-term investment returns.

Objectives of the IPO: The proceeds from the Offer for Sale will be utilized for the following objectives:

1. Achieving the benefits of listing the equity shares on stock exchanges.
2. Carrying out the offer for sale of up to 702,199,262 equity shares by the promoter selling shareholder.

IPO Allotment Process: The Sagility India IPO allotment will be finalized on November 08, 2024. Investors can check their allotment status on the registrar's website by entering their application number, PAN, or DP Client ID.

IPO Review Conclusion: Although Sagility India has demonstrated strong revenue and EBITDA growth, the high valuation and limited Grey Market Premium suggest that the IPO may not offer substantial short-term gains. For long-term investors, the company's relatively low RoE and high P/E ratios may also signal limited upside potential. Investors are advised to carefully assess their risk tolerance and consider other investment options before applying for the Sagility India IPO.

The Upcoming IPOs in this week and coming weeks are Mangal Compusolution, Onyx Biotec, Rosmerta Digital, NTPC Green, Avanse Financial and Black Buck.

The Current active IPO are  Niva Bupa Health and Neelam Lines and Garments.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.