Sagility India IPO makes positive debut; shares list 3.5% higher at ₹31.06

Shares of Sagility India made a positive debut on stock exchanges on Tuesday, slightly above Street expectations. Sagility shares listed at ₹31.06 apiece on the BSE and NSE, a premium of 3.5% over the initial public offering (IPO) price of ₹30 per share. Ahead of listing, shares of Sagility India were commanding a grey market premium (GMP) of ₹0.30 apiece, or 1%, over the issue price, indicating listing to be around ₹30.3.

Post listing, Sagility India shares touched a high and low of ₹31.28 and ₹30.50, respectively, on the NSE, while the market capitalisation stood at ₹14,755 crore at the time of reporting. Meanwhile, the equity benchmark Sensex and Nifty edged lower in choppy trade after making a positive start.

While the IPO received a moderate subscription of 3.2 times, the listing performance is considered positive given the company's specific focus on the U.S. healthcare market, which is subject to various regulatory and economic factors, says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

“However, investors should remain cautious. The company's reliance on a single market and the potential impact of U.S. policy changes could pose risks. Additionally, the high valuation and the nature of the IPO as a complete offer for sale (OFS) may limit upside potential,” she says.

Nyati recommended investors, who participated in the IPO, to consider holding their shares by keeping a stoploss around ₹28, but closely monitoring the company's performance and market dynamics.

The Bengaluru-based healthcare-focused solutions and service provider raised ₹2,106.60 crore at a price band of ₹28-30 per share, which opened for subscription between November 5-7. The IPO received lukewarm response, with the issue fully subscribing on the last day of bidding on the back of good response from retail investors. 

The issue, which was entirely an offer for sale (OFS) of 70.22 crore shares by existing shareholders, received 3.20 times bidding, with the retail category getting 4.16 times subscription, followed by 3.52 times in qualified institutions buyers segment and 1.93 times in the non-institutional investors category. The quota reserved for employees was booked 3.75 times. Since the IPO is completely an OFS, the company will not receive any fund from the issue.

A day before the opening of the issue, Sagility India raised ₹945 crore from anchor investors, which saw participation from foreign and domestic institutions. The list includes HDFC Mutual Fund, Nomura, Government Pension Fund Global (Norges Bank), ICICI Prudential Mutual Fund, Mirae Asset Mutual Fund, ICICI Prudential Life, WhiteOak Mutual Fund, Amundi, Allspring Global, Lion Global, Motilal Oswal Mutual Fund and Max Life Insurance amongst others. 

Sagility India Limited, formerly known as Berkmeer India Private Limited, is a pure-play healthcare focused services provider, and its clients include payers (U.S. health insurance companies, which finance and reimburse the cost of health services) and providers (primarily hospitals, physicians, and diagnostic and medical devices companies). The company services to payers cater to various aspects of their operations including core benefits administration functions such as claims management, enrolment, benefits plan building, premium billing, credentialing, and provider data management and clinical functions such as utilisation management, care management, and population health management.

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