Sagility India IPO: Comprehensive Investment Guide for 2024
Sagility India Private Limited, a significant player in healthcare outsourcing, is stepping into the public investment arena with its Initial Public Offering (IPO) in November 2024. Offering specialized healthcare solutions, Sagility India provides services to both healthcare payers and providers, mainly based in the United States. This article provides a detailed overview of the Sagility India IPO, covering crucial details such as price range, lot sizes, and company background to help potential investors make an informed decision.
About Sagility India Private Limited
Formerly known as Berkmeer India Private Limited, Sagility India Private Limited specializes in healthcare outsourcing, targeting U.S.-based health insurers (payers) and healthcare providers (e.g., hospitals, physicians, and pharmacies). The company offers revenue cycle management, claims administration, and clinical management services aimed at improving efficiencies across healthcare operations. Key clientele includes five of the top ten U.S. healthcare payers, with Sagility expanding its customer base by 20 new clients in 2023 and 2024.
Sagility IPO Details:
Here are the key specifics of the Sagility India IPO that investors should consider:
- IPO Dates: Opens on November 5, 2024, and closes on November 7, 2024
- Listing Date: Expected on November 12, 2024
- Face Value: ₹10 per share
- Price Band: ₹28 to ₹30 per share
- Lot Size: Minimum of 500 shares and in multiples thereof
- Total Issue Size: 702,199,262 equity shares, aggregating to ₹2,106.6 crore
Sagility IPO Timeline:
| Event | Date |
|---|---|
| IPO Open Date | November 5, 2024 |
| IPO Close Date | November 7, 2024 |
| Basis of Allotment | November 8, 2024 |
| Initiation of Refunds | November 8, 2024 |
| Credit of Shares to Demat | November 11, 2024 |
| Listing Date | November 12, 2024 |
Note: The cut-off time for UPI mandate confirmation is 5 PM on November 7, 2024.
Lot Size and Investment Range:
Investors can place bids in multiples of 500 shares. Below are the minimum and maximum investment ranges for different categories:
| 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 |
This structure allows both retail and high-net-worth individuals (HNIs) to participate, with broader opportunities for retail investors to enter the IPO.
Promoter Holding and Post-IPO Shareholding:
Sagility India is promoted by Sagility B.V. and Sagility Holdings B.V. The promoter holding stands at 100% pre-IPO, which will be adjusted post-IPO as shares are allocated across various investor categories. The company’s total shares before and after the IPO remain at 4,681,328,413, with the public issue aiming to expand the company’s equity distribution.
Sagility IPO Reservation Allocation:
The Sagility India IPO allocation is spread across multiple investor categories:
- Qualified Institutional Buyers (QIBs): 21,00,89,779 shares (29.92%)
- Non-Institutional Investors (NIIs): 10,50,44,889 shares (14.96%)
- Retail Individual Investors (RIIs): 7,00,29,926 shares (9.97%)
- Employees: 19,00,000 shares (0.27%)
- Anchor Investors: 31,51,34,668 shares (44.88%)
With the Sagility India IPO’s attractive pricing, some investors may consider IPO flipping—selling shares quickly post-listing to profit from immediate gains. Although it can be profitable, this strategy has risks, as post-listing prices can be volatile. For a thorough analysis of IPO flipping, its risks, and potential rewards, check out our guide on IPO Flipping.
Grey Market Premium (GMP) and Market Sentiment:
The Grey Market Premium (GMP) for the Sagility India IPO indicates the expected listing price premium. Although unofficial, GMP provides insights into investor sentiment. Sagility’s GMP shows positive market interest, primarily due to the healthcare outsourcing sector’s growth potential. Investors may view the IPO favorably due to Sagility’s strong customer base, reputation in the U.S. healthcare market, and consistent revenue streams.
Before investing in Sagility India, many investors look at the Grey Market Premium (GMP) to gauge market sentiment. GMP provides an indication of the expected listing price by reflecting demand in the unofficial market. For a deeper understanding of how GMP works and its significance in IPO investments, read more in our article on IPO Grey Market Premium (GMP).
Financial Performance and Growth Outlook:
Sagility’s revenue growth aligns with the rising demand for healthcare outsourcing. With services that support U.S. payers and providers in handling complex billing and claims processes, the company positions itself as essential in a market experiencing regulatory and operational shifts. As of March 31, 2024, Sagility served a vast customer base in the U.S. and employed over 35,000 employees worldwide, with a majority being women (60.52%). These factors suggest strong operational and financial stability for long-term investors.
Investment Potential: Pros and Cons:
Pros:
- Healthcare Sector Growth: Rising healthcare outsourcing needs, particularly in the U.S., positions Sagility for growth.
- Stable Customer Base: Five of the top ten U.S. healthcare payers are clients, many with 17+ years of tenure.
- Experienced Workforce: 1,687 certified employees, including registered nurses and medical coders, support complex healthcare processes.
Cons:
- High Sector Competition: The healthcare outsourcing sector is competitive, with players offering similar services.
- Regulatory Risks: Healthcare is highly regulated, especially in the U.S., potentially impacting operations and profitability.
FAQs On Sagility India IPO:
What is the price range for the Sagility India IPO?
The price band is set between ₹28 and ₹30 per share.
What services does Sagility India provide?
Sagility India offers services like claims administration, revenue cycle management, and clinical management primarily to U.S.-based healthcare payers and providers.
How can I check the allotment status for Sagility India IPO?
The allotment status will be available on the registrar’s website after November 8, 2024.
Is the Sagility India IPO a good investment?
The IPO has potential due to the growing demand for healthcare outsourcing and Sagility’s established customer base. However, potential investors should consider their risk tolerance and market conditions before investing.
When will Sagility India list on stock exchanges?
The expected listing date for Sagility India is November 12, 2024, on NSE and BSE.
Conclusion
The Sagility India IPO offers a unique opportunity to invest in the expanding healthcare outsourcing sector. With a robust client base and established service offerings, Sagility could attract investors interested in the healthcare sector’s growth trajectory. While the IPO shows potential, it is crucial for investors to weigh the benefits and risks before making an investment decision.
If you’re interested in how Sagility India is raising capital, it’s helpful to understand the nuances between an Initial Public Offering (IPO) and an Offer for Sale (OFS). While both involve selling shares, the purpose and structure differ significantly. Unlike an IPO, where new shares may be issued to raise fresh capital, an OFS involves promoters or major shareholders offloading their stake without diluting the company’s equity. To dive deeper into these differences, visit our detailed guide on OFS vs. IPO.
