Sagility India IPO: GMP Nil After Modest Day 1 Subscription

The grey market premium or GMP, pointed towards a flat debut for Sagility India Ltd. following the conclusion of the first day of its initial public offering on Tuesday.

At the end of day one, the IPO was subscribed 0.22 times. The modest investor response failed to lift the GMP, which remained nil, according to InvestorGain. The GMP stood at Rs 3 till Nov. 3, but slipped to zero a day before the IPO's launch.

The nil GMP at present suggests that the stock may list flat at Rs 30 per share, which is the upper end of the IPO price band. However, GMP is not an official price quote for the stock and is based on speculation.

Notably, Sagility India is aiming to raise up to Rs 2,106 crore through the public issue. The IPO proceeds will not be available to the company, as the issue comprises only an offer-for-sale component.

On the first day of subscription, the demand for the IPO was led by retail investors, who booked 1.09 times their reserved portion. Non-institutional investors booked 0.07 times their allotted quota, whereas the participation from qualified institutional buyers was negligible.

A day before the IPO launch, Sagility India raised Rs 945.4 crore from anchor investors. The company allotted 31.51 crore shares at Rs 30 apiece to 52 anchor investors, which include ICICI Prudential Innovation Fund, Nomura Funds Ireland-India Equity Fund, and Government Pension Fund Global, among others.

The subscription window for the IPO will close on Nov. 7, and the tentative date of listing is Nov. 12. The company's shares would debut on both the main exchanges—the NSE and the BSE.

Sagility India, which provides technology-enabled business solutions to clients in the US healthcare industry, recorded a revenue of Rs 4,754 crore in fiscal 2024. This was 12% higher as compared to Rs 4,218 crore in fiscal 2023.

The company's net profit had increased by 58% to Rs 228 crore in fiscal 2024, as against Rs 144 crore in the preceding fiscal.