Sagility India IPO Day 2: Issue Subscribed 40%

Sagility India continued to see sluggish demand on Day 2 of its Initial Public Offering (IPO). This follows a slow start on the first day. At the time of writing, 40% of the issue had been subscribed on the second day. A technology-focused services and solutions provider in the healthcare industry, Sagility India’s IPO is an offer-for-sale (OFS) worth ₹2,106.60 crore.

Sagility India’s IPO opened on November 5, 2024. The issue is an offer-for-sale for 70.22 crore shares. On Day 2 of the issue, the retail portion received significant interest from investors and sailed through. The three-day share sale will be open to investors till November 7, 2024. Following the closure of the subscription period, the shares will be allotted on November 8, 2024. Sagility India’s shares are expected to be listed on the stock exchanges on November 12, 2024.

The overall subscription of the issue remained lacklustre on Day 2, as the IPO comprises only an offer-for-sale component. In addition, higher valuations and negative market sentiments could have also impacted the subscription to the issue. 

Sagility IPO Subscription Status

On the first day of the IPO, Sagility’s shares were subscribed 0.22 times. The issue failed to gain momentum on the second day too, as it was subscribed 0.40 times at the time of writing.

As of 2 p.m. on November 6, bids received for the QIB portion remained unchanged at 49,000 shares. A total of 21 crore shares were set aside for the segment. For NIIs, the company has set aside 10.50 crore shares. However, it has attracted only 0.15 times subscription, with bids received for 1.54 crore shares.

The retail portion saw higher interest, being subscribed 1.90 times. The company has set aside 7 crore shares for the retail segment and has received bids for 13.30 crore shares so far. Meanwhile, the portion reserved for employees was subscribed 2.23 times, with the company receiving bids for 42.32 lakh shares against 19 lakh shares offered by the company.

Sagility IPO Price Band and Lot Size

Sagility India’s IPO has a price band of ₹28-₹30 per share, with the minimum application size being 500 shares. An investor will have to make a minimum investment of ₹15,000 to apply for the Sagility India IPO. The minimum lot sizes for small non-institutional investors and big non-institutional investors are set at 14 lots and 67 lots, respectively.

About Sagility India

Sagility provides technology-oriented services to the healthcare segment, largely in the US market. The company focuses on optimising the member-patient experience through its solutions that include case management, member engagement, payment integrity, and analytics.

Sagility India reported a 10.66% year-on-year (YoY) rise in total income to ₹1,247.75 crore in Q1FY25. The company’s net profit for the quarter was down 47.5% YoY to ₹22.29 crore. In FY24, the company's net profit jumped 59% to ₹228.26 crore while the total income grew by 12.87% YoY to ₹4,781 crore.