The stock opened at the same price on the NSE as well.
Sagility India shares opened slightly above the market expectation of merely Rs 0.3 per share.
The company made a decent debut on the stock market and the IPO received a moderate subscription of 3.2 times. The listing performance is considered positive given the company’s specific focus on the US healthcare market, which is subject to various regulatory and economic factors.
“Investors should remain cautious. The company’s reliance on a single market and the potential impact of US policy changes could pose risks. Additionally, the high valuation and the nature of the IPO as a complete offer for sale (OFS) may limit upside potential,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Nytai suggests that investors who participated in the IPO may consider holding their shares by keeping a stop loss of around Rs 28. Closely monitoring the company’s performance and market dynamics is also crucial.The Rs 2,106 crore IPO was 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 provides technology-driven solutions to US healthcare payers and providers, including health insurance companies, hospitals, and medical device companies.
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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%.
Around 11 am on Tuesday, the shares of Sagility India were trading 1.6% higher at Rs 31.55 on the BSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)