Sagility India Makes Muted Market Debut with 3.53% Premium Over IPO Price - Read Now 

Sagility India's IPO opened in fairly subdued fashion on 12 November 2024 with the shares listing at ₹31.06 on the NSE and BSE, thus translating into a rather modest 3.53% premium over the issue price of ₹30 per share. Still, despite the IPO being oversubscribed 3.2 times Sagility India's IPO debut represents tempered market enthusiasm, though analysts hint at long-term potential in the healthcare-focused services market.

Sagility India IPO Details
Sagility India's IPO priced at ₹2,106.60 crore opens from 5th November to 7th November with a price band of ₹28-30 per share. The IPO saw tremendous demand in both the categories of retail and institutional investors. The issue in the retail category is oversubscribed 4.16 times and QIBs subscribe to the issue 3.52 times. The IPO was fully an OFS of 70.22 crore shares with no component of fresh issuances, hence Sagility itself will not receive any proceeds directly from this listing.

After listing, the promoters' holding is likely to be reduced to 82.5%. Anchor investors pool in ₹945.4 crore on November 4 clearly makes bright the estimated expectation for the IPO debut of Sagility.

Market and Brokerage Outlook
Brokerages generally asked investors to 'subscribe' for long-term benefit as the company focuses on healthcare service providers in the U.S. market. Master Capital Service pointed out that the U.S. healthcare expenditure has grown at a 3.2% CAGR from 2014 to 2023 and will grow at 5.2% CAGR during 2028. This makes a great benefit for healthcare-focused service providers like Sagility India which already possesses relations with health care payers and providers.

The same can be seen for the company Sagility India, for which Bajaj Broking allotted an average EPS of ₹0.37 and average RoNW of 2.52% during the last three fiscal years. They further stated the IPO is selling at a price-to-earnings multiple of 157.89 based on estimated FY25 results, and though the IPO is trading at an overpriced value, growth opportunity in Sagility's niche market is still to be explored.

Financial Summary and Future Potential
Sagility India reported the earnings from operations of ₹4,753 crore for FY24 compared with ₹4,218 crore in the previous year. The net profit surged at 59% to ₹228.2 crore compared with ₹143.5 crore in FY23. Its Q1 FY25 earnings were at ₹1,223 crore in revenues and ₹22.2 crore in net profits, built up on the momentum.

Sagility, formerly known as Berkmeer India Private Limited, provides core healthcare services to payers-claims administration, clinical services, and revenue cycle management. Most services provided by Sagility to U.S. healthcare payers and providers are highly regulated and, therefore, are very hard to compete for. However, the same may create stable growth opportunities.