The initial public offering (IPO) of Sagility India Limited, a prominent healthcare solution provider, has opened for bidding on November 5, 2024. Known for its innovative solutions in healthcare management, Sagility India aims to raise approximately ₹2,106.60 crore through an all-offer-for-sale (OFS) model. The IPO will remain open for three days, concluding on November 7, 2024. Here’s a comprehensive breakdown of everything you need to know before considering an investment.
Sagility India IPO Key Details
- Grey Market Premium (GMP): Currently, Sagility India shares are trading at a ₹3 premium in the grey market. While the GMP reflects market sentiment, it does not guarantee future listing gains, so investors should evaluate based on fundamentals.
- Price Band: The company has set its IPO price band between ₹28 and ₹30 per share, giving potential investors an affordable entry point.
- Subscription Dates: Bidding is open from November 5 to November 7, 2024, with interest from retail, NII, and institutional investors.
- IPO Size and Allocation: Sagility aims to raise ₹2,106.60 crore, with all funds directed toward the OFS. This structure indicates the selling promoters will receive the proceeds.
IPO Subscription Status
By 10:15 AM on the first day, Sagility India’s IPO recorded an overall subscription of 0.02 times, with retail investors accounting for 0.11 times and non-institutional investors (NIIs) at 0.01 times. This reflects a cautious approach among investors, often typical on the first day of bidding.
Lot Size and Allotment
Investors can apply for Sagility India shares in lots, with each lot comprising 500 shares. The allotment date is expected on November 8, 2024, and the listing is set for November 12 on the BSE and NSE.
| Key Detail | Information |
|---|---|
| IPO Price Band | ₹28 to ₹30 |
| Lot Size | 500 shares |
| Expected Allotment | November 8, 2024 |
| Listing Date | November 12, 2024 |
| Registrar | Link Intime India Private Limited |
| Lead Managers | ICICI Securities, IIFL Securities, Jefferies India, JP Morgan India |
Expert Review: Is Sagility India IPO Worth Applying For?
Analyst Review: Prathamesh Masdekar, Research Analyst at StoxBox, rates the IPO a “Subscribe” due to the company’s strong revenue growth and market presence. In the last fiscal year (FY24), Sagility India reported a revenue increase of 12.69%, from ₹4,218.4 crore in FY23 to ₹4,753 crore. The company also maintained solid EBITDA margins of 23.5%, indicating healthy profitability.
Industry Trends: The U.S. healthcare market, where Sagility holds a substantial client base, is expected to grow at a CAGR of 5.2% over the next five years. This growth will be driven by an aging population and increased healthcare spending, suggesting stable demand for healthcare service providers like Sagility India.
Should You Invest?
Investors with an interest in long-term returns may find this IPO attractive, particularly given the stable U.S. healthcare market outlook. However, the high P/E ratio of 56.6x suggests that investors should approach with caution. Based on the company’s growth potential and strong market position, this IPO could offer valuable gains for long-term portfolios.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult a financial advisor before making investment decisions.
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