Sagility IPO Closes Today: Final Subscription Status, GMP, Investment Insights
Sagility India Ltd IPO subscription closes today, 7th November. The interest among the retail investors has been increasing along with steady traction of employee reservations during the IPOs subscribing process. Sagility India Ltd IPO has been launched on November 5 after much hype seen due to the unique positioning of the healthcare technology firm and competitive pricing between ₹28 and ₹30 per equity share. This article analyzes the Sagility IPO in detail, based on the latest subscription status, grey market premium, and insight into whether this is a good investment decision.
Sagility IPO Day 3 Subscription Status
As of 10:24 IST on 7 November, the Sagility India IPO has received bids for 23.55 crores of shares against the total offer of 38.70 crores of shares, achieving a 61% subscription rate. Special interest from the retail investors has been shown as their portion is oversubscribed by 2.58 times, while the NII portion reaches 34% subscription. The QIB portion is still somewhat low at 7% of the allocated shares. Employees also subscribed 2.70 times the allocated shares.
These figures denote persistent interest of investors from all quarters; the IPO is expected to get full subscription till the closing of the day. Day 2 has recorded a subscription rate of 52%, while the first day had a subscription rate of 22%.
Sagility IPO Grey Market Premium (GMP) Today
As per the latest grey market premium data available on investorgain.com, Sagility IPO is trading at a premium of ₹0.50. Going by the pricing, the IPO has an upper price band of ₹30. Thus, calculated with the help of the premium, the expected listing price of the IPO of Sagility is estimated at ₹30.50 per share and shows a marginal rise of about 1.67% over the issue price. However, the latest GMP has observed a downward trend from its maximum recorded premium of ₹3 over the last ten days and suggests tempered expectations in the secondary market.
Price and Offering for Sagility IPO
Sagility India's IPO has fixed a price band of ₹28-30 per share. 75% of the issue has been reserved for QIBs, 15% for NIIs and 10% for the retail investor. An employee portion of up to 1.9 million equity shares further enhances the fact that the company is looking to include the employees in its growth story.
It is purely an OFS of 70.22 crore shares at a value of ₹2,106.60 crores at the upper end of the price band. The proceeds of this entire IPO will go to the selling shareholder Sagility BV and Sagility India Ltd would not raise any fresh capital through this offer.
Sagility IPO Market Position and Company Details
Sagility India Ltd earlier was known as Berkmeer India Private Limited. It delivers its technology-based services to the health care sectors of the United States primarily comprising Payers or health care insurers in the U.S. and Providers or hospitals and medical services. It assists various crucial operations for the said institutions, which comprises centralization of claims management and other clinical services. This is an important player in the healthcare technology industry as its revenues are better these days because of increased outsourcing trends. The need for efficient management solutions for healthcare organizations has increased such practices.
As said by the analysts of Nirmal Bang and Master Capital Services Ltd, Sagility is in an ideal place because of niche expertise in the healthcare payer sector. Analysts pointed out strong client relationships and services uniquely offered by Sagility, which is due to the optimism towards market prospects. The adjusted P/E ratio of 24x and EV/EBITDA of 13x for FY24 earnings seems quite reasonable for investors interested in sector-specific exposure.
Investment View: Should one Invest in Sagility IPO?
Nirmal Bang and Master Capital Services Ltd recommend subscribing to the Sagility IPO for long-term growth from an investment perspective in the healthcare technology space. A massive client base coupled with specialised services has given the firm an edge over conventional IT companies. And then comes the steady GMP and strong retail subscription that talk of rising investor confidence.
As much as the IPO is on offer with a largely OFS character-no new capital infusion to Sagility India-the company enjoys strong market positioning and growing demand from the outsourcing-focused health care industry likely to translate well into good returns in the future. Nevertheless, investors would do well to be aware that the base of institutional subscriptions tracks considerably behind retail demand in the IPO.
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