The initial public offering (IPO) of Sagility India Ltd, which started on November 5, 2024, closes today, November 7. This IPO has gained interest from retail investors, with steady demand from the employee segment as well. However, interest from large investors, such as Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), has remained lower.
As of this morning, the Sagility IPO has achieved a 64% overall subscription rate. According to the Bombay Stock Exchange (BSE) data, bids have been received for 24.92 crore shares against the total offer of 38.70 crore shares. The retail segment has shown strong interest, reaching 2.72 times its allocated portion. The employee segment has seen a positive response, achieving 2.82 times subscription. Meanwhile, non-institutional investors (NIIs), typically high-net-worth individuals, have been more cautious, with a 37% subscription rate. Qualified Institutional Buyers (QIBs) have subscribed only 7% of their reserved portion. The IPO structure has set 75% of shares aside for QIBs, 15% for NIIs, and 10% for retail investors. In addition, Sagility has allocated up to 1.9 million shares specifically for employees.
Sagility India’s shares have been trading with a minor premium in the grey market. Currently, the grey market premium is ₹0.50, which means investors are willing to pay an additional ₹0.50 over the IPO’s highest price band of ₹30 per share. This premium suggests a tentative listing price of ₹30.50, about 1.67% higher than the issue price. However, it’s important to remember that GMP can fluctuate and is not a reliable predictor of actual market performance. In the last 10 sessions, the GMP for Sagility has varied between ₹0 and ₹3, showing a recent decline. Experts in the grey market say this indicates some hesitation among investors regarding the potential gains upon listing.
Important Dates for Sagility IPO
- IPO Open Date: November 5, 2024
- IPO Close Date: November 7, 2024
- Basis of Allotment Date: November 8, 2024
- Initiation of Refunds: November 9, 2024
- Credit of Shares to Demat Accounts: November 11, 2024
- IPO Listing Date: November 12, 2024
Sagility India’s IPO has seen varied levels of interest. While retail investors have shown considerable interest, institutional participation remains lower. The grey market premium is currently modest, and experts believe the stock’s listing performance could vary. Sagility operates in the healthcare technology sector, which is expected to grow, but IPO investments always come with risks. Before making a final decision, it’s essential for investors to assess their risk tolerance and consider factors such as Sagility’s business fundamentals, valuation, and the general market sentiment. Consulting a financial advisor can also be helpful in making a personalized and informed choice regarding this IPO.
