1 week ago
Sagility India Ltd. made a weak start on the bourses on Tuesday, November 12. The stock listed at ₹31.06 on both the NSE and the BSE, which is at a premium of 3.53%, over the issue price of ₹30 per share.
Ahead of its debut, Sagility India shares witnessed a sharp correction in the grey market premium (GMP). The company's shares were trading at a premium of less than ₹1 in the unofficial market today.
Narendra Solanki of Anand Rathi Shares and Stock Brokers had expected the listing of the IPO to be flat, considering the market sentiments. "We believe that the expected listing is justified considering the business model, financial position with no peer-to-peer listed competitors."
The three-day bidding between November 5-7 concluded with a 3.20 times subscription.
The quota for retail investors fetched 4.16 times subscription, while the qualified institutional buyers' portion was booked 3.52 times. The category for non-institutional investors got booked 1.93 times, while the employees bought 3.75 times their reserved quota.
The company sold its shares in a fixed price band of ₹28-30, where investors placed bids for 500 shares in a lot and its multiples thereof.
Just ahead of the issue opening, Sagility India's parent firm Sagility BV garnered about ₹366 crore by offloading a 2.61% stake to nine institutional investors.
The Bengaluru-based company garnered about ₹2,107 crore through the public offer, which included entirely as an offer-for-sale of 70.2 crore equity shares by the only promoter Netherlands-based Sagility BV.
All proceeds, excluding expenses, will go to the selling shareholder, and Sagility India will not receive funds from the issue.
The original IPO size was reduced from 98.44 crore shares as initially proposed in the preliminary filings. Sagility BV, an affiliate of EQT Private Capital Asia, is the sole promoter of Sagility India and will reduce its shareholding by 15%, retaining 85% after the IPO.
Sagility India posted a 47.5% decline in profit to ₹22.3 crore for the quarter ending June 2024, primarily due to decreased operating margins and higher taxes. Revenue surged 9.6% to ₹1,223 crore, but EBITDA fell by 26% to ₹193.9 crore, with margins shrinking 777 basis points to 15.85%.
In FY24, Sagility’s net profit rose 59% to ₹228 crore despite a dip in operating margin, bolstered by reduced finance costs and increased other income. Revenue grew 12.7% to ₹4,753.6 crore, while EBITDA rose by 5.9% to ₹1,088 crore, though margins declined by 150 basis points to 22.9%.
ICICI Securities Limited, Iifl Securities Ltd, Jefferies India Private Limited and JP Morgan India Private Limited are the book running lead managers, while Link Intime India is the registrar for the issue.
