Sagility India Limited is set to launch its IPO on November 5, 2024, aiming to raise approximately ₹2,106.6 crore through an offer-for-sale of up to 70.22 crore equity shares priced between ₹28 and ₹30 each. Formerly known as Berkmeer India, Sagility specializes in providing healthcare-focused solutions and services to U.S.-based payers and providers, enhancing operational efficiency and improving the quality of care. With a strong client base that includes five of the ten largest U.S. payers and an average service tenure of 17 years, Sagility is well-positioned in the healthcare market.
As of March 31, 2024, the company reported a net profit of ₹228.27 crore on revenues of ₹4,781.5 crore, demonstrating solid financial performance. With over 35,000 employees and a commitment to diversity—60.52% of whom are women—Sagility emphasizes its workforce’s expertise in healthcare services.
₹00
₹30
₹31.06
Expert Opinions
The Sagility India IPO is generating positive market sentiment as it prepares to raise approximately ₹2,106.6 crore through an offer-for-sale of 70.22 crore equity shares, with a price band set between ₹28 and ₹30. The company, formerly known as Berkmeer India, specializes in providing healthcare-focused solutions to U.S.-based payers and providers, showcasing its strengths in delivering essential services such as claims administration and clinical management. With a solid track record of serving five of the ten largest U.S. payers and a long-standing client base averaging 17 years, Sagility demonstrates reliability and expertise in the healthcare sector.
However, potential risks and challenges include fluctuations in demand for healthcare services and the competitive landscape within the industry. In terms of valuation analysis, Sagility commands a market capitalization of slightly over ₹14,000 crore, reflecting its growth potential despite recent profit fluctuations. The long-term investment perspective appears promising, given the increasing demand for healthcare solutions driven by technological advancements and regulatory changes in the U.S., positioning Sagility as a compelling opportunity for investors seeking exposure to the healthcare sector.
Investor Considerations
Investors considering the Sagility India IPO should take into account several key factors. The company performance and fundamentals indicate a solid revenue growth of 12.7% year-on-year, reaching ₹4,753.6 crore for the fiscal year ending March 2024, despite a recent decline in quarterly profits. The sector outlook for healthcare services remains strong, driven by increasing demand for technology-enabled solutions in the U.S. market, particularly among payers and providers.
The IPO valuation, set between ₹28 and ₹30 per share, values Sagility at approximately ₹14,044 crore at the upper price band, reflecting a reasonable assessment of its market position. Growth prospects are promising as the company continues to expand its client base and enhance service offerings. However, potential risk factors include competition from other healthcare service providers and fluctuations in demand for its services. A long-term investment horizon is advisable, as Sagility is well-positioned to capitalize on the growing healthcare sector, making it an attractive option for investors seeking exposure to this market.
| Date | GMP | Trend |
|---|---|---|
| 10 Nov 2024 12.35 | ₹00 | --- |
| 09 Nov 2024 11.12 | ₹00 | --- |
| 08 Nov 2024 10.46 | ₹00 | --- |
| 07 Nov 2024 10.18 | ₹00 | --- |
| 06 Nov 2024 10.46 | ₹00 | --- |
| 05 Nov 2024 11.55 | ₹00 | Down |
| 04 Nov 2024 10.39 | ₹5 | Up |
| 31 Oct 2024 13.45 | ₹00 | --- |
FAQs
The Grey Market Premium showed reasonable accuracy in predicting Sagility India’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock actually listed with a modest gain of 3.53%. With a small prediction error of 3.53%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
Sagility India IPO Current GMP is ₹00.
Sagility India IPO Expected Returns is 0.00%.
Sagility India IPO estimated listing price is ₹30.