Sagility India Lists at 3.53% Premium Above Issue Price on BSE/NSE

Sagility India Limited, established in July 2021 and specialized in providing technology-driven healthcare solutions to US health insurance payers and providers, made its market debut on Monday, 12th November 2024, with its shares listing on both BSE and NSE. The company, which serves five of the ten largest US payers with an average customer tenure of 17 years, emerged from acquiring the healthcare services division of Hinduja Global Solutions.

Listing Details

• Listing Price: Sagility India shares were listed at ₹31.06 per share on both BSE and NSE at market open, marking a positive start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a modest premium over the IPO issue price. Sagility India had set its IPO price band from ₹28 to ₹30 per share, with the final issue price being fixed at the upper end of ₹30.
• Percentage Change: The listing price of ₹31.06 translates to a premium of 3.53% over the issue price of ₹30.

First-Day Trading Performance

• Opening vs. Latest Price: As of 09:45 AM IST, the stock was maintaining its opening price of ₹31.06.
• Market Capitalisation: As of 09:45 AM IST, the company's market capitalisation stood at ₹14,540.21 crore, with free float market cap at ₹1,163.22 crore.
• Trading Volume: The traded volume was 9.95 lakh shares with a traded value of ₹3.08 crore as of 09:45 AM IST.

Market Sentiment and Analysis

• Market Reaction: The stock maintained stability at its opening price in early trading.
• Subscription Rate: The IPO was oversubscribed by 3.20 times (as of November 7, 2024, 6:19:09 PM), with retail investors leading at 4.16 times subscription, followed by QIBs at 3.52 times, and NIIs at 1.93 times. The employee portion was subscribed 3.75 times.
• Trading Range: In early trading, the stock maintained a steady price of ₹31.06 with no fluctuation recorded yet.

Growth Drivers and Challenges

Expected drivers of future performance:

• Strong presence in US healthcare market
• Long-standing customer relationships
• Diverse service portfolio
• Strong workforce of 35,044 employees
• Significant certifications including 1,280 US registered nurses

Potential challenges:

• Aggressive pricing concerns
• High dependence on US market
• Competitive healthcare services sector
• Technology disruption risks
• Currency fluctuation exposure

Financial Performance

The company has demonstrated strong growth:

• Revenue increased by 13% to ₹4,781.50 crore in FY2024 from ₹4,236.06 crore in FY2023
• Profit After Tax rose by 59% to ₹228.27 crore in FY2024 from ₹143.57 crore in FY2023
• Q1 FY2025 showed revenue of ₹1,247.76 crore with PAT of ₹22.29 crore

As Sagility India begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and expand its market share in the US healthcare services sector. The modest but positive listing suggests cautious optimism towards the company's prospects in the technology-enabled healthcare solutions space.