Sagility India Ltd made its stock market debut on November 12, 2024, with shares listing at ₹31.06 on both the NSE and BSE, reflecting a modest premium of 3.53% over its issue price of ₹30. The initial public offering (IPO) was met with strong demand, being oversubscribed 3.2 times, but the listing itself has been described as lackluster.
IPO Overview
The Sagility India IPO, valued at approximately ₹2,106.60 crore, was open for subscription from November 5 to November 7. The offering was entirely an offer for sale (OFS), consisting of 70.22 crore shares, with no fresh issue component involved. The price band for the IPO was set between ₹28 and ₹30 per share.
Subscription Details
The IPO garnered significant interest across various investor segments:
- Retail Investors: Subscribed 4.16 times
- Qualified Institutional Buyers (QIBs): Subscribed 3.52 times
- Non-Institutional Investors (NIIs): Subscribed 1.93 times
- Employee Quota: Subscribed 3.75 times
In total, bids were received for approximately 123.99 crore shares, against the 38.7 crore shares on offer.
Market Performance
Despite the strong subscription numbers, Sagility’s shares debuted with a modest premium, aligning closely with grey market trends that indicated a slight premium ahead of the listing. The muted debut reflects broader market sentiments and investor caution in the current economic climate.
Company Profile
Sagility India Ltd specializes in providing healthcare-focused solutions and services to U.S.-based payers (health insurers) and providers (hospitals, physicians). The company offers a range of services, including:
- Centralized claims administration
- Clinical management
- Payment integrity
- Revenue cycle management
In the financial year 2023-24, Sagility reported revenue from operations of approximately ₹4,753 crore, marking a 12.6% increase from the previous year. The profit after tax (PAT) also saw a significant rise of 59%, reaching around ₹228.2 crore.
Analyst Opinions
Brokerages have generally expressed a positive outlook on Sagility’s long-term potential despite the muted debut:
- Master Capital Services recommended subscribing for long-term benefits, citing growth in U.S. healthcare spending as a favorable factor.
- Bajaj Broking also advised investors to consider the stock for long-term investment, although they noted that it appears aggressively priced based on projected earnings.
Conclusion
Sagility India’s muted debut at ₹31.06 reflects both strong initial demand and cautious investor sentiment in the current market environment. As it begins trading, investors will be keen to monitor its performance and the company’s future growth prospects in the healthcare sector.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or recommendations regarding investment decisions.
