Sagility India IPO: Key Details, Subscription Status, and Analyst Recommendations

The Sagility India IPO is making waves in the Indian stock market, with its initial public offering (IPO) hitting the market on November 5, 2024. Investors have until November 7, 2024 to place their bids. As a leading healthcare solutions provider, Sagility India aims to raise ₹2,106.60 crore through its entirely Offer for Sale (OFS). The IPO has drawn attention due to its competitive pricing and promising industry prospects. Here’s everything you need to know about the IPO, including its current grey market premium (GMP), subscription status, and whether you should consider applying.

Sagility India IPO Price and Subscription Details

  • Price Band: The price range for Sagility India IPO has been fixed at ₹28 to ₹30 per share.
  • IPO Size: Sagility India aims to raise ₹2,106.60 crore from this offer, which is entirely an Offer for Sale (OFS).
  • Bidding Period: The IPO is open from November 5 to November 7, 2024, with the retail portion already seeing significant interest.

Sagility India IPO Subscription Status (Day 2)

As of 11:15 AM on Day 2 of the IPO:

  • The overall subscription is 0.33 times.
  • The retail portion is subscribed 1.58 times, indicating strong demand from individual investors.
  • The Non-Institutional Investors (NII) portion is subscribed 0.11 times.

Grey Market Premium (GMP)

Sagility India shares are currently trading at a ₹3 premium in the grey market. This suggests a favorable outlook for the issue, although investors should consider the volatility and risks associated with grey market trading.

IPO Lot Size and Allotment

  • Lot Size: A bidder can apply in lots of 500 shares, making it accessible for both retail investors and larger institutional players.
  • Allotment Date: The most likely date for allotment is November 8, 2024.
  • Listing Date: The shares are expected to be listed on BSE and NSE on November 12, 2024.

Sagility India IPO Lead Managers and Registrar

  • Lead Managers: The IPO is managed by ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India.
  • Registrar: Link Intime India Private Limited is the official registrar for the public issue.

Sagility India IPO: Should You Apply?

Analysts have mixed opinions, but many recommend a “subscribe” rating for long-term investors. Here’s why:

  1. Valuation: The company is valued at a Price-to-Earnings (P/E) ratio of 56.6x on the upper price band, based on FY24 earnings. This is considered reasonable for a tech-enabled healthcare solutions company with strong growth prospects.
  2. Industry Outlook: Sagility operates in the US healthcare sector, which has seen a steady growth rate of 3.2% CAGR from 2014 to 2023. This sector is expected to grow further at a 5.2% CAGR through 2028. The increasing demand for specialized healthcare services, driven by an aging population and chronic diseases, positions Sagility as a key player in this space.
  3. Long-term Growth: The company’s strong relationships with healthcare payers and providers contribute to its high client retention and revenue stability, making it an attractive option for long-term investors.

Analysts such as Prathamesh Masdekar from StoxBox and several other research firms have also assigned a “subscribe” recommendation, highlighting Sagility’s solid business model and growth potential in the expanding healthcare sector.

Conclusion

With strong backing from analysts and a promising industry outlook, the Sagility India IPO appears to be a good opportunity for investors seeking exposure to the growing healthcare sector. If you’re considering a long-term investment, this IPO could be worth subscribing to, given the company’s robust market positioning and growth prospects in the tech-enabled healthcare solutions industry. However, as with all investments, due diligence is essential.

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