Sagility India Shares Close At 3% Discount Over Issue Price

The share price of Sagility India Ltd. closed on the BSE at Rs 29.09, marking a 3% discount from its issue price on Tuesday. It closed at Rs 29.06 on the National Stock Exchange at a 3.13% discount.

The stock had listed on the BSE at Rs 31.06 apiece at a premium of 3.53%. The stock listed at the same price on the NSE, marking a similar premium.

The IPO of Sagility India was subscribed 3.2 times on its final day of bidding led by retail buyers.

The entire IPO is an offer for sale. The price band was set at Rs 28-30 per share. The minimum application lot size was 500 shares. The company raised Rs 945.4 crore from anchor investors ahead of its initial public offering. It allotted 31.51 crore shares at Rs 30 apiece to 52 anchor investors.

Retail category was subscribed 4.16 times, NII category was subscribed 1.93 times, the QIB category saw demand of 3.52 times and the portion reserved for employees was subscribed 3.75 times.

Sagility India Ltd. provides business services and solutions to healthcare providers and payers. Payers are largely insurance companies, said Ramesh Gopalan, managing director and group chief executive officer. 

US healthcare is a large industry—around $4.7 trillion—which is larger than the GDP of India, so it's a very attractive market. Sagility is still a small firm in the large market. Hence, it's not planning to expand out of the US now. "In the near future, we're going to be more focused on US market," Gopalan said.

Sagility India provides technology-enabled business solutions and services to clients in the US healthcare industry. The company was incorporated on July 28, 2021, however, it acquired the healthcare services business of the predecessor company on Jan. 6, 2022, which is when it started commercial operations.

Clients of Sagility India include Payers (US health insurance companies, which finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).

Services to 'Payers' cater to their 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.

Services to 'Providers' include revenue cycle management functions such as financial clearance, medical coding, billing, and accounts receivable follow-up services.

All of the company's clients are located in the US as of June 30, 2024.