Sagility India shares list at 3% premium on bourses mirroring IPO GMP trend

Sagility India shares listed at Rs 31 on the BSE, reflecting a premium of 3.53 per cent against the IPO allotment price of Rs 30

Sagility India IPO listing Today: Shares of Sagility India made a lacklustre debut on the bourses on Tuesday following the completion of its initial public offering (IPO). Sagility India shares listed at Rs 31.06 on the BSE, reflecting a premium of 3.53 per cent against the IPO allotment price of Rs 30.

 

Similarly, on the National Stock Exchange (NSE) too, Sagility India shares listed at a premium of 3.53 per cent against the IPO allotment price, at Rs 31.06 on Tuesday.

 

The listing nearly aligns with grey market trends, as the company's shares were trading at a premium of around Rs 0.30 against the upper end of the IPO price of Rs 30, reflecting a grey market premium (GMP) of 1 per cent ahead of listing, according to sources tracking grey market activities. 

While Sagility India's IPO received a moderate subscription of 3.2 times, its listing performance is considered positive, according to Shivani Nyati, Head of Wealth at Swastika Investmart, given the company's specific focus on the US healthcare market, which is subject to various regulatory and economic factors.

 

However, investors should remain cautious, Nyati continued. "The company's reliance on a single market and the potential impact of US policy changes could pose risks. Additionally, the high valuation and the nature of the IPO as a complete offer for sale (OFS) may limit upside potential."

 

Nyati suggests that investors who participated in the IPO may consider holding their shares, keeping a stop-loss around Rs 28, but closely monitoring the company's performance and market dynamics is crucial.

 

The three-day subscription window to bid for Sagility India's Rs 2,106.60 crore offering closed on Thursday, November 7, 2024, receiving decent participation from investors. It received bids for 1,24,00,17,000 shares against the 38,70,64,594 shares on offer, resulting in an oversubscription of 3.20 times by the last date of subscription, as per BSE data.

 

Sagility India's IPO, which was available at a price band of Rs 28-30 with a lot size of 500 shares, received the highest demand from retail investors, who placed bids at a subscription rate of 4.16 times, followed by qualified institutional buyers (QIBs) at 3.52 times, and non-institutional investors (NIIs) at 1.93 times. Meanwhile, the quota reserved for employees was subscribed 3.75 times by the last day of subscription. The basis of allotment for Sagility India IPO shares was finalised on Friday, November 8, 2024.

 

Sagility India provides healthcare-focused solutions and services to US-based payers (health insurers) and providers (hospitals, physicians, etc.). Services include claims administration, payment integrity, clinical management, and revenue cycle management. The company supports core business operations for both payers and providers and also serves Pharmacy Benefit Managers.