Upcoming IPO: Sagility India Limited's IPO is going to open tomorrow. It is a healthcare focused service provider company, whose subscription will open tomorrow on Tuesday. Before the issue opening, the company's shares are trading at a premium of Rs 3 in the unlisted market.


This can be compared to the IPO pricing of Rs 28-30 per share, which translates into a listing gain of about 10% if the trend continues. Just before the IPO opened, Sagility India Limited's parent company Sagility BV raised about ₹366 crore by selling 2.61% stake to 9 institutional investors.

Company to raise ₹2100 crore
The Bengaluru-based company aims to raise ₹2,107 crore through the public offering, which is entirely an offer for sale of 70.2 crore equity shares by sole promoter Netherlands-based Sagility BV. All proceeds, excluding expenses, will go to the selling shareholder, and Sagility India will not receive any money. The

original IPO size was reduced from the 98.44 crore shares initially proposed in the preliminary filing. Sagility BV, a subsidiary of EQT Private Capital Asia, is the sole promoter of Sagility India and will reduce its stake to 15% to hold 85% post-IPO.

The key debt
anchor book of the IPO will open later today, and the issue will close for subscription on November 7. 75% of the IPO has been reserved for institutional buyers, 10% for retail participants and the remaining 15% will be available for non-institutional investors. The minimum lot size for application is 500 shares.

Sagility India reported a 47.5% decline in profit to ₹22.3 crore for the quarter ended June 2024, mainly due to a drop in operating margins and higher taxes. The company's revenue grew 9.6% to ₹1,223.3 crore, but EBITDA fell 26% to ₹193.9 crore, while margins fell 777 basis points to 15.85%.

In FY24, Sagility's net profit grew 59% to ₹228 crore despite a decline in operating margins, supported by lower financial costs and an increase in other earnings. The company's revenue grew 12.7% to ₹4,753.6 crore, while EBITDA grew 5.9% to ₹1,088 crore, although margins declined 150 basis points to 22.9%.

ICICI Securities Limited, IIFL Securities Limited, Jefferies India Private Limited and JP Morgan India Private Limited are the book running lead managers, while Link Intime India is the registrar to the issue.

Allotment for Sagility India IPO is expected to be finalized on November 8, while the company will be listed on BSE, NSE and the tentative listing date is November 12, 2024.