Sagility India, a healthcare-focused solutions provider, is set to open its Initial Public Offering (IPO) for public subscription on November 5, 2024. The IPO, with a total issue size of Rs 2,106.60 crore, will be an offer-for-sale (OFS), meaning that all funds raised will go to its Netherlands-based promoter, Sagility B.V., without providing new capital to the company. Investors can apply until November 7, with a minimum lot size of 500 shares, making the initial investment requirement Rs 15,000.
The price band for the IPO has been set between Rs 28 and Rs 30 per share, and the grey market premium (GMP) currently stands at Rs 3, suggesting that shares may list at approximately Rs 33. Although GMP provides an initial gauge of demand, it does not guarantee a listing price. Following the subscription period, the shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 12, 2024.
In this IPO, 15% of the offer is reserved for Non-Institutional Investors (NIIs), and 10% is allocated for retail investors, with allotments expected to be finalized by November 8, 2024. Prior to the IPO, Sagility India raised Rs 366 crore from nine investors, including Adani Properties and Elpro, signaling strong early interest. The anchor round for Sagility India was conducted on November 4, boosting investor confidence.
Sagility India’s core business lies in providing healthcare solutions to US health insurance companies, known as “payers,” helping with the financing and reimbursement of health services. It also serves healthcare providers, including hospitals and physicians, supporting them with various operational processes. Investors should note that as an OFS, the IPO does not generate new funds for Sagility India, so there is no direct contribution to growth or debt reduction.
Key considerations for investors include the healthcare focus of the company, the implications of a pure OFS structure, and the exposure to US market risks. Although Sagility India has generated interest, investors are encouraged to assess their financial goals and consult with Financial advisors before making a decision.
