On the second day of bidding on Wednesday, Sagility India’s initial public offering (IPO) has been 28% subscribed so far, fueled by strong participation from retail investors. On day one, the issue was 22% subscribed.
At 10:24 am, the issue attracted bids for 10,90,56,500 shares, or 28% against the issue size of 38,70,64,594 shares. The retail portion of the issue was subscribed 1.38 times, and the subscription rate for the non-institutional category was 10%. The qualified institutional buyers (QIBs) were yet to subscribe to the issue.
The Rs 2,106 crore IPO is entirely an offer for sale of 70.22 crore shares by the promoter, Sagility BV, with no fresh issue component. All proceeds, excluding costs, go to the selling shareholder.
Sagility India IPO Price Range
The company has set a price range between Rs 28 and 30, where investors can bid for 500 shares in a single lot.
Agility 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 entirely an offer for sale (OFS) and valuations are on the higher side. Additionally, current negative market sentiments may impact listing performance and subscription numbers.
“The company focuses exclusively on the US healthcare market. The outcome of the US presidential elections could impact its business. The valuation appears high, without direct comparison to peers. Investors may consider skipping this IPO,” said Swastika Investmart .
“The company’s deep, long-term, growing customer relationships with healthcare payers and providers contribute to high customer loyalty and retention. Investors interested in the company can invest in the IPO for the long term,” Master Capital Service said.
Other details
Sagility India provides technology-driven solutions to US healthcare payers and providers, including health insurers, hospitals and medical device companies.
A total of 19 lakh shares have been reserved for Sagility employees at a discount of Rs 2 on the final price. In addition, 75% of the remaining shares are intended 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 ended June 2024, mainly due to lower operating margins and higher taxes. Revenue rose 9.6% to Rs 1,223.3 crore, but EBITDA fell 26.4% to Rs 193.9 crore, with margins falling 777 basis points to 15.85%.
In FY24, Sagility’s net profit rose 59% to Rs 228.3 crore despite a decline in operating margin, supported by lower financing costs and higher other income. Revenue grew 12.7% to Rs 4,753.6 crore, while EBITDA rose 5.9% to Rs 1,088 crore, though margins fell 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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