Sagility India IPO Subscribed 3.2 Times On Final Day, Retail Investors Lead Demand

Sagility India Ltd.'s initial public offering of shares worth Rs 2,106 crore has been subscribed 3.2 times on the third and final day of bidding, led by demand from retail investors. The book building offer was subscribed 52% on its second day, and 22% on its first day.

The grey market premium of Sagility India was Rs 0.30 as of 4.00 p.m. on Nov. 7, implying a downturn over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 30.03 per share.

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

• Issue opens: Nov. 5.

• Issue closes: Nov. 7.

• Issue price: Rs 28-30 per share.

• Offer for sale: Rs 2,106 crore.

• Total issue size: Rs 2,106 crore.

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.

The IPO was subscribed 3.2 times as of 7:00 p.m. on Thursday.

• Qualified institutional buyers: 3.52 times.

• Non-institutional investors: 1.93 times.

• Retail investors: 4.16 times.

• Portion reserved for employees: 3.75 times.

The grey market premium of Sagility India was Rs 0.3 as of 4.00 p.m. on Nov. 7, implying no gains over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 30.03 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.