Sagility India IPO recorded 80% on day three, GMP hit hard

Sagility India’s initial public offering (IPO) managed to go ahead on its third and final day of trading after a lukewarm response from investors. On the first day, the issue was only 23 percent subscribed, and the second day of trading ended just shy of the halfway mark.

Bengaluru-based Sagility India is selling its shares at Rs 28-30 per share. Investors can then apply for a minimum of 500 shares and multiples thereof. The company hopes to raise Rs 2,106.60 crore through the IPO, which is a wholly offer for sale (OFS) by the promoters of the company.

According to the data, by 1:00 pm on Thursday, November 7, investors had placed bids for 40,59,01,500 shares or 1.05 as against 38,70,64,594 shares offered for subscription. edition, which opened on Tuesday, November 7, ends today.

The portion reserved for non-institutional investors (NIIs) was subscribed 3.08 times while the portion reserved for non-institutional investors (NIIs) was subscribed 49 percent. The employee portion was booked 3.10 times. However, 63 percent of bids were submitted under the quota allocated for qualified institutional bidders (QIBs).

Sagility India, formerly known as Berkmeer India, provides healthcare-focused solutions and services to payers (US health insurers that fund and reimburse healthcare services) and service providers (primarily hospitals, physicians, diagnostics and medical technology companies ). It supports the core business of both payers and providers.

Sagility India’s gray market premium suffered after muted trading on the issue during the first two days of subscription. The company was last reported to be fetching a premium of Rs 0.30 per share in the unofficial market, implying a fixed listing just a percentage higher. Before the bidding opened, GMP was priced at Rs 3 per piece.

Brokerage companies have the most positive attitude to this issue, offering to subscribe to it for a long period. Management experience, long-term client relationships, strong market shares and industry leadership are key positives for the release. On the other hand, dependence on individual clients, entire US businesses, and the 100% issuance nature of OFS could negatively impact its prospects.

Sagility has deep expertise and a leadership position in the paid healthcare market, offering comprehensive services compared to other traditional IT players. With growing outsourcing prospects in the traditionally conservative healthcare industry, Sagility is best positioned to gain momentum and market share, according to Nirmala Bang Securities.

“The shares are available at 24 times adjusted P/E and 13 times FY24 EV/EBITDA, which seems reasonable given the highly specialized nature of the business, and therefore we have a ‘subscribe’ recommendation for the issue,” it said. .

Sagility India reported a net profit of Rs 22.29 crore on revenue of Rs 1,257.76 crore for the quarter ended June 30, 2024. Net profit for FY24 stood at Rs 228.27 crore on revenue of Rs 4,781.5 crore. The company’s total market capitalization will be over Rs 14,044 crore.

Bengaluru-based Sagility India has raised Rs 945.4 crore from 52 anchor investors ahead of its IPO launch. It has reserved 75 percent of the net amount for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs) and 10 percent for retail investors.

Sagility India is one of the leading technology-based healthcare specialists with full coverage of the payer and healthcare provider markets. The company’s deep, long-term and expanding customer relationships among payers and healthcare providers drive strong customer loyalty and retention, Master Capital Services said in a release with a “subscribe for the long term” rating.

ICICI Securities, Jefferies India, IIFL Securities and JP Morgan India are the lead managers for Sagility India’s IPO, while Link Intime India is the registrar for the issue. The company’s shares will be listed on both the BSE and NSE, with the listing date being Tuesday, November 12th.