Thu Nov 07 04:10:00 UTC 2024: ## Sagility India IPO Over-Subscribed: Retail Investors Drive Strong Demand

**Bengaluru, India** – Sagility India Ltd’s initial public offering (IPO) is set to conclude today with strong subscription numbers driven by enthusiastic retail investors and employees. While demand from institutional investors remains low, market experts are optimistic about the IPO’s success, citing its appealing price point and the company’s strong position in the US healthcare sector.

The IPO, which opened on Tuesday, November 5th, saw a 65% subscription rate by midday today. Retail investors, attracted by the ₹28-30 per share price band, have already fully subscribed their quota, while the employee portion is oversubscribed by 2.85 times. The IPO has attracted a total of ₹945 crore from anchor investors.

The company, which previously operated as Berkmeer India Private Limited, specializes in providing healthcare solutions and services to both US health insurers (payers) and providers (hospitals, physicians, etc.). Its comprehensive services, including claims management and clinical services, have garnered strong client loyalty.

“Sagility enjoys a pricing advantage,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services. “The price point is appealing in comparison to other recent IPOs, which have been priced much higher.”

Brokers are also positive, highlighting Sagility’s expertise in the complex US healthcare market and its strong position to capitalize on the growing outsourcing trend within the industry. The company’s adjusted P/E ratio of 24x and EV/EBITDA of 13x based on FY24 earnings are deemed reasonable, leading to a “Subscribe” recommendation for the offering.

The IPO is solely an offer for sale (OFS) of 70.22 crore shares, valued at ₹2,106.60 crore at the highest end of the price band. Promoter Sagility BV is divesting its stake through this OFS.

The IPO is expected to be fully subscribed by the end of the day. The gray market premium (GMP) currently stands at ₹0.50, indicating a potential listing price of ₹30.5, 1.67% higher than the IPO price.

Investors seeking exposure to the US healthcare market and a company with strong long-term potential may find Sagility India’s IPO an attractive investment opportunity.

**Disclaimer:** This information is intended for general knowledge purposes only and should not be considered as investment advice. Investors are advised to consult with qualified financial professionals before making any investment decisions.

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