The issue attracted bids for 1,24,00,17,000 shares, or 3.2 times the issue size of 38,70,64,594 shares. The retail portion of the issue was subscribed 4.16 times, and the non-institutional category’s subscription rate stood at 1.93 times. The qualified institutional buyers (QIBs) portion witnessed a subscription of 3.52 times.
The Rs 2,106 crore IPO is entirely an offer-for-sale of 70.22 crore shares by the promoter, Sagility B.V., with no fresh issue component. All proceeds, excluding expenses, will go to the selling shareholder.
Sagility India IPO price band
The company has fixed a price band in the range of Rs 28-30, where investors can bid for 500 shares in one lot.
Sagility India IPO GMP
The company’s shares were trading at a GMP of Rs 0 in the unlisted market, indicating muted demand for the IPO.
Sagility India IPO review
Analysts are mixed on the IPO as the issue is completely an offer for sale (OFS) and valuations are on the higher side. Further, the current negative market sentiments may impact listing performance and subscription numbers.
“The company is exclusively focused on the US healthcare market. The US presidential election outcomes could affect its operations. Valuation appears high, with no direct peers for comparison. Investors may consider skipping this IPO,” said Swastika Investmart.
“The company’s deep, long-term, expanding client relationships across healthcare payers and providers assist in high client stickiness and retention. Investors interested in the company can invest in the IPO for the long term,” said Master Capital Service.
Other details
Sagility India provides technology-driven solutions to US healthcare payers and providers, including health insurance companies, hospitals, and medical device companies.
A total of 19 lakh shares have been reserved for Sagility employees at a Rs 2 discount on the final price. Additionally, 75% of the remaining shares are earmarked for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
Sagility India reported a 47.5% decline in profit to Rs 22.3 crore for the quarter ending June 2024, primarily due to decreased operating margins and higher taxes. Revenue rose 9.6% to Rs 1,223.3 crore, but EBITDA fell by 26.4% to Rs 193.9 crore, with margins shrinking 777 basis points to 15.85%.
In FY24, Sagility’s net profit surged 59% to Rs 228.3 crore despite a dip in operating margin, bolstered by reduced finance costs and increased other income. Revenue grew 12.7% to Rs 4,753.6 crore, while EBITDA rose by 5.9% to Rs 1,088 crore, though margins declined by 150 basis points to 22.9%.
ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the lead managers for the IPO.
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