Sagility: Sagility India went for a mute IPO debut listing on Tuesday, November 12, with a price of Rs. 31.06. This premium is 3.53 percent above the share’s issue price of Rs. 30. At Rs. 2,106.60 crores, investors were able to subscribe to the IPO between November 5 and November 7, at a price range of Rs. 28 to Rs. 30 per share.
The three days of bidding that followed managed to close as demand was high, and Sagility garnered as much as 3.2 times bids. Retail investors subscribed to the shares as much as 4.16 times, whereas NIIs subscribed as much as 1.93 times. Qualified Institutional Buyers also subscribed to Sagility shares by placing 3.52 times bids, and the employee quota bid as much as 3.75 times.
The Company
Berkmeer India Private Limited, which became Sagility India Limited, is a US-based healthcare services and solutions provider that focuses on both Payers and Providers, such as hospitals, physicians, and medical technology companies. Payers get a comprehensive range of services, including clinical services and management, payment integrity, and centralised claims administration. Providers are offered revenue management services to recover costs from Payers. These services also help facilitate easy billing.
IPO Listing
The IPO was fully OFS (offer for sale) and was worth Rs. 70.22 crores of shares with no fresh issues. After the issue, promoters’ holdings will go down to 82.5 percent. The anchor round on November 4, 2024, saw the company raise Rs. 945.40 crores. Retail investors are expected to subscribe to a minimum of 500 shares, with a minimum investment amount of Rs. 15,000.
Advantages gained with this IPO included equity shares listing on the stock exchanges and up to 702199262 offer of sale equity shares having a face value of Rs. 10 per share. There were 19,00,000 reserved shares in the issue that were offered to employees at a discounted price of Rs. 2 per share.
The auction’s leading book-running managers included ICICI Securities Ltd, IIFL Securities, Jefferies India Private Limited, and J.P. Morgan India Private Limited. Link Intime India Private Limited was the registrar.
Brokerage
Brokerages had a positive impact on the IPO, with Master Capital Service advising subscribers to stay invested long-term. This indicates that U.S. healthcare spending increased at a CAGR of 3.2 percent in the last decade, from 2014 to 2023. The CAGR reached $201.1 billion in 2023 and is expected to grow at a CAGR of 5.2 percent to $258.9 billion during this decade and by 2028.
Bajaj Finserv also made similar recommendations and advised investors to stay subscribed long-term, highlighting the average EPS of Rs. 0.37 and RoNW of 2.52 percent over the last three years.
Earnings and Revenue
Revenue from operations for FY23-24 was Rs. 4,753 crores, a 12.8 percent jump from the previous fiscal. Profit After Tax also increased significantly by 59.2 percent, to Rs. 228.2 crores in FY24, as against the previous FY, where it was 143.5 crores. Sagility also recorded a revenue of Rs. 1,223 crores, with net profit amounting to Rs. 22.2 crores in Q1 FY25.
Conclusion
The US-based healthcare technology company witnessed steady growth from FY22 to FY24, and annual numbers from FY25 also suggest aggressive pricing. Considering this and Sagility’s track record, an investor should consider parking their fund’s long-term.
Sagility India Limited
IPO
