Sagility India, a healthcare-focused technology solutions provider, primarily serves U.S. healthcare industry clients, including Payers (health insurers) and Providers (hospitals and physicians). The Sagility India IPO opened on November 5, 2024, and closes on November 7, 2024, targeting a fundraise of ₹2,106.60 crore through an Offer for Sale (OFS) of 7,021.99 lakh shares by its promoters, Sagility B.V. and Sagility Holdings B.V. Key highlights are as follows:

1. IPO Dates: Opens on November 5 and closes on November 7, 2024.
2. Price Band: The price range is ₹28 to ₹30 per share.
3. Market Capitalization: Estimated at ₹14,043.98 crore based on the upper band of ₹30 per share.
4. Lot Size: A minimum of 500 shares per lot is required for retail investors.
5. Listing Date: Tentatively scheduled for November 12, 2024 on BSE and NSE.
6. Anchor Investors: Sagility India secured ₹945.40 crore from anchor investors at ₹30 per share.

Objectives of the IPO

As a pure OFS, the IPO proceeds will be directed to the selling shareholders rather than the company. However, Sagility aims to benefit from listing on the stock exchanges, thereby increasing liquidity and providing an exit opportunity for existing investors.

Financial Performance

Sagility India has demonstrated strong revenue growth in recent years, driven by demand for healthcare technology solutions in the U.S. market. Here’s an overview of key financials:

• Revenue: For FY2024, Sagility’s revenue reached ₹47,815.04 million, up from ₹42,360.60 million in FY2023 and ₹9,443.94 million in FY2022.
• EBITDA: The EBITDA for FY2024 was ₹11,160.37 million, showing a steady rise from previous years.
• Profit after Tax (PAT): Sagility’s PAT for FY2024 was ₹2,282.66 million, compared to ₹1,435.72 million in FY2023, reflecting improving profitability.

The pre-issue EPS is ₹0.53, while the post-issue EPS is expected to be ₹0.48. With a Return on Equity (RoE) of 3.54% for FY24, Sagility’s financial metrics indicate moderate profitability and growth potential.

Valuation and Investment Analysis

The pre-issue P/E ratio stands at 56.60x, while the post-issue P/E ratio is 62.5x, suggesting that the IPO is priced in line with Sagility’s recent performance. However, with an industry P/E ratio generally higher, Sagility’s valuation appears modest for a niche player in the healthcare solutions sector.

Sagility’s Grey Market Premium (GMP) shows no premium, indicating minimal listing gains expected due to limited enthusiasm in grey market trading.

Sagility India IPO Subscription Status

As of 12:20 PM on November 7, 2024, Sagility’s IPO had been subscribed 0.78 times, with investors showing measured interest. Subscription details can be checked in real time on the BSE website.

Allotment and Listing Information

Sagility India’s IPO allotment is set for November 8, 2024. Investors can check their allotment status via the registrar’s (Link Intime India) website. Any refund will be processed by November 9, and shares are expected to list on November 12, 2024.

Investment Pros and Cons

Pros:

• Sagility’s focus on the U.S. healthcare market, particularly catering to Payers and Providers, positions it well in a growing industry.
• Consistent revenue and profit growth over recent fiscal years, with rising demand for healthcare technology solutions.
• Strong anchor investor support reflects a certain level of confidence from institutional investors.

Cons:

• Purely an Offer for Sale, meaning the IPO proceeds will not directly fund company expansion.
• Relatively modest financial ratios and a lack of Grey Market Premium may indicate limited short-term gains.
• High P/E ratio relative to RoE may be a concern for value-focused investors.

Conclusion: Investment Recommendation

The Sagility India IPO provides an opportunity to invest in a healthcare-focused technology solutions provider with a strong base in the U.S. market. However, considering the moderate financial performance, valuation, and zero GMP, the IPO appears fully priced with limited potential for listing gains.

For long-term investors with confidence in Sagility’s healthcare technology niche and growth trajectory, this IPO may offer moderate returns. Short-term investors seeking listing gains may prefer to take a cautious approach due to the low expected upside.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Neelam Lines and Garments, Rosmerta Digital, NTPC Green, Avanse Financial and Zinka Logistics.

The Current active IPO is Sagility India Limited, Swiggy, ACME Solar Holdings and Niva Bupa Health .

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.