Sagility IPO Day 3: Issue booked 3.20x led by retail investors. Check GMP, subscription status. Should you buy ?

Sagility IPO: Sagility India Ltd's initial public offering will conclude its subscription today (Thursday, November 7). So far, the offering has seen a strong response from retail investors and employees, while demand from non-institutional investors and Qualified Institutional Buyers remains low. It is anticipated that the issue will receive full subscription numbers on the final bidding day. Market experts have shown a preference for the Sagility India IPO, attributed to its appealing price factor.

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, stated that the company enjoys a pricing advantage. “By pricing advantage, I mean that it’s set at ₹28-30. We haven't encountered anything like this for some time. Nearly every new issue we come across is priced at least in the three-digit range. As a result, this price point is quite appealing, and on its debut day, the retail segment has already been fully subscribed,” explained Kejriwal.

Sagility India Ltd announced on Monday that it has secured more than ₹945 crore from anchor investors. The public offering, which commenced on Tuesday, November 5, has set a price band of ₹28-30 per share.

Sagility IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employee portion has been reserved up to 1,900,000 equity shares.

Sagility India, which was previously called Berkmeer India Private Limited, delivers solutions and services centered on healthcare for both Payers (US health insurers responsible for funding and reimbursing healthcare costs) and Providers (mainly hospitals, physicians, diagnostic services, and medical technology firms).

The firm aids the fundamental operations of both payers and providers. Services offered to payers cover their entire operational range, encompassing centralised claims management and clinical services activities.

Sagility IPO Subscription Status

The initial public offer of Sagility IPO has been subscribed 3.20 times on the last day of subscription today, as per BSE data.

The initial share sale received bid for 1,23,99,75,500 shares against 38,70,64,594 shares on offer, according to BSE.

The portion for retail investors received 4.16 times subscription while the quota for non-institutional investors got subscribed 1.93 times. The qualified institutional buyers (QIBs) part is booked 3.52 times. The employee portion has been subscribed 3.75 times.

Sagility India IPO recorded a 52% subscription rate on the second day of bidding on Wednesday. 

The segment allocated for retail individual investors (RIIs) achieved a subscription rate of 2.24 times, while the allocation for non-institutional investors saw a 24% subscription. The qualified institutional buyers (QIBs) portion reported a 7% subscription. The employee segment was booked at a rate of 2.44 times.

On the first bidding day, Sagility India IPO subscription status was 22%.

Sagility IPO Review

Nirmal Bang

As per the brokerage, Sagility possesses significant expertise and a leading role in the specialised payer healthcare sector, providing extensive services that set it apart from conventional IT firms. With an increasing trend towards outsourcing in the historically cautious healthcare industry, Sagility is well-positioned to secure growth and capture a larger market share. The shares are currently priced at an adjusted P/E ratio of 24x and an EV/EBITDA of 13x based on FY24 earnings, which appears reasonable considering the company's highly specialised focus, leading to a recommendation to 'Subscribe' to the offering.

Master Capital Services Ltd

The report from the brokerage highlighted that the US healthcare sector is marked by complicated services, strict compliance standards, detailed performance metrics, and complex payment processes. These obstacles require specialised service providers who have the necessary expertise to effectively handle and navigate these intricacies. Sagility India Limited stands out as a prominent tech-enabled healthcare specialist, offering extensive services across the healthcare payer and provider sectors. The company's strong, long-lasting relationships with clients in the healthcare payer and provider markets contribute to a high level of client loyalty and retention. Investors looking to engage with the company should consider participating in the IPO for a long-term investment opportunity.

Sagility IPO details

The IPO from the Bengaluru-based company consists solely of an offer for sale of 70.22 crore shares valued at ₹2,106.60 crore at the highest end of the price range. Promoter Sagility BV is divesting its shareholding through this OFS.

The complete amount raised from the public offering will be directed to the selling shareholders.

The book running lead managers for the Sagility India IPO include ICICI Securities Limited, Iifl Securities Ltd, Jefferies India Private Limited, and J.P. Morgan India Private Limited, whereas Link Intime India Private Ltd serves as the registrar for the offering.

Sagility IPO GMP today

Sagility India IPO GMP today is +0.50. This indicates Sagility India share price was trading at a premium of ₹0.50 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sagility India share price is indicated at ₹30.5 apiece, which is 1.67% higher than the IPO price of ₹30.

According to the grey market activities over the past 10 sessions, the present GMP ( ₹0.50) indicates a downward trend. The minimum GMP recorded is ₹0, while the maximum GMP reached is ₹3, as per the insights from investorgain experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.