The Sagility India IPO is a book-built issue aiming to raise ₹2,106.60 crores, entirely through an offer for sale of 70.22 crore shares. This IPO opens for subscription on November 5, 2024, and closes on November 7, 2024. The allotment is expected to be finalized on November 8, 2024, with the listing set for November 12, 2024, on both the BSE and NSE.
The price band for the IPO is set at ₹28 to ₹30 per share, with a minimum lot size of 500 shares, requiring a minimum investment of ₹15,000 from retail investors. Additionally, up to 1,900,000 shares are reserved for employees at a discount of ₹2 per share.
Sagility India IPO Details
| Parameter | Details |
|---|---|
| IPO Date | November 5 – November 7, 2024 |
| Listing Date | November 12, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹28 to ₹30 per share |
| Lot Size | 500 Shares |
| Total Issue Size | 702,199,262 shares (₹2,106.60 Cr) |
| Offer for Sale | 702,199,262 shares |
| Employee Discount | ₹2 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Also See: IPO GMP
Investment Options
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 500 | ₹15,000 |
| Retail (Max) | 13 | 6,500 | ₹195,000 |
| S-HNI (Min) | 14 | 7,000 | ₹210,000 |
| S-HNI (Max) | 66 | 33,000 | ₹990,000 |
| B-HNI (Min) | 67 | 33,500 | ₹1,005,000 |
About Sagility India Limited
Sagility India Limited, previously known as Berkmeer India Private Limited, specializes in providing healthcare-focused solutions and services primarily to US-based payers and providers. The company supports the operational spectrum of its customers, including centralized claims administration, clinical management, and revenue cycle management services.
As of March 31, 2024, Sagility India served some of the largest payers in the US and reported a stable workforce of 35,044 employees, with a notable focus on diversity, as 60.52% of its employees are women. The company has established strong relationships with its customers, evidenced by an average service tenure of 17 years with its five largest customer groups.
Also See: Subscription
Financial Performance
Key Performance Indicators (KPIs) as of June 30, 2024
| KPI | Values |
|---|---|
| Market Capitalization | ₹14,043.99 Cr |
| Debt/Equity | 0.15 |
| RoNW | 0.29 |
| P/BV | 2 |
| PAT Margin (%) | 1.82 |
IPO Review: Should You Apply?
Pros of the Sagility India IPO
- Established Clientele: Sagility India has a strong customer base with long-standing relationships, indicating stability and reliability in revenue generation.
- Healthcare Sector Growth: The company’s focus on healthcare services aligns well with the growing demand for healthcare solutions, especially in the US market.
- Diverse Service Offerings: With a range of services for both payers and providers, Sagility India is well-positioned to leverage its expertise in revenue cycle management and claims administration.
Cons of the Sagility India IPO
- Low Profitability: The company’s PAT margin stands at just 1.82%, indicating challenges in achieving significant profitability.
- Dependence on US Market: Sagility India’s focus on the US market may expose it to risks associated with economic fluctuations and regulatory changes in that region.
- High Valuation: With a price band of ₹28 to ₹30, the valuation may appear steep given the company’s current financial metrics and profitability concerns.
Conclusion: Avoid
Considering the overall performance indicators, profitability challenges, and the high valuation, it may be prudent for investors to avoid the Sagility India IPO. While the healthcare sector offers potential, the current financial health of the company does not present a compelling case for investment at this time.
Investors looking for more robust opportunities may want to consider other IPOs or investment avenues that align better with their financial goals.
Contact Information
For any queries related to the Sagility India IPO, you can reach out to:
- Registrar: Link Intime India Private Ltd
- Phone: +91-22-4918 6270
- Email: sagility.ipo@linkintime.co.in
- Website: Link Intime