Big moves are happening at Sagility India, and investors are taking notice. The promoter group of the company, Sagility B.V., is to sell shares worth a massive ₹2,671 crore. Yes, it’s a huge sum. And it’s coming in an Offer for Sale (OFS), which goes live on May 27 for non-retail investors and May 28 for the others, including retail investors such as you and me. On Monday itself, the stock already experienced a spurt, jumping more than 1% to close at ₹43.
Promoter Share Sale Kicks Off May 27, Retail Bidding on May 28
Here’s the skinny. If you’re not an individual investor, you’re the boss , the OFS window is available to you on May 27. But if you are an individual investor, don’t fret, your chance is the next day on May 28. That’s when both individual and non-individual people can be part of it. It’s a brief window, so if you’re interested, put those dates in your diary.
Promoter Firm Sagility B.V. Prepares to Sell Big Stake
Who’s selling, then? The promoter of the private equity firm owned by EQT is Sagility B.V. They’ve chosen to sell some of their stake in Sagility India, and it’s not a small one. It’s all strategy, naturally, likely to take some profits or perhaps simply balance the books. Such is the life. But anyway, it’s a large transaction, and it’s made it into the news.
Base Offer Includes 7.39% Stake at ₹38 Floor Price
Now on to business. The minimum offer’s 346.13 million equity shares represent roughly 7.39% of the company’s total assets. They’ve chosen a floor price of ₹38 per share, below the previous closing price of ₹42.87, so they’re giving a discount here. Overall value of this minimum offer is around ₹1,315 crore. But if all the shares get subscribed, sale would be more at ₹2,671 crore.
No New Shares Issued – Purely Fully Secondary Sale
Here’s the point: this is not a matter of new shares. No new shares are issued. The promoters are completely transferring their existing shares to new subscribers in this secondary sale. So, here, the company is not raising new capital, but definitely the share of ownership is shifting somewhat.
Sagility’s 2023 IPO Was Oversubscribed Three Times
Now, a bit of a jump forward to last November. Sagility India’s IPO was available, an issue of ₹2,106 crores. And lo, it was oversubscribed over 3 times. Clearly, then, investor sentiment was on a high. Sagility B.V. only sold shares during that IPO; there was no new issue there either.
Promoters Currently Hold 82.39% Stake in the Company
The promoter group currently owns a big 82.39% stake in Sagility India. After this OFS, it will come down, but they’ll still have most likely controlling interest. It’s a remix, and not an exit, and the investors will watch to see how it affects the stock in the next few days.
