Sagility India hits lower circuit as OFS kicks off; stock down 28% from Dec 2024 high
Sagility India shares: The stock hit its lower limit at Rs 40.72, and is off 28 per cent from its December 2024 high of Rs 56.44. The weakness on the counter was observed as the floor price for the OFS was set at Rs 38 apiece.
- May 27, 2025,
- Updated May 27, 2025 10:35 AM IST
Sagility India Ltd hit its lower circuit limit on Tuesday, as a promoter entity is eyeing 15.02 per cent stake sale via offer for sale (OFS) and meet minimum public shareholding norms. The stock hit its lower limit at Rs 40.72, and is off 28 per cent from its December 2024 high of Rs 56.44. The weakness on the counter was observed as the floor price set at Rs 38 was at nearly 12 per cent discount to Monday's closing price.
Sagility BV has proposed to sell up to 3,46,132,843 equity shares, representing 7.39 per cent of the company's total paid-up equity share capital. If the oversubscription option is fully exercised, the total number of shares offered—including the base offer and the oversubscription portion—will rise to 7,03,000,000 shares, equivalent to 15.02 per cent of the total paid-up equity capital.
The OFS has opened today for non-retail investors only. On Wednesday, May 28, 2025, bidding will open for retail investors as well as for non-retail investors who choose to carry forward their unallotted bids.
JM Financial noted that the company expects low to mid-teen organic growth in constant currency for FY26, with overall revenue growth projected to exceed 20% when factoring in the acquisition of BroadPath. Management reaffirmed its guidance for an adjusted EBITDA margin of 24–25% for FY26, excluding a 100–120 basis point negative impact from BroadPath.
"The company mentioned that its typical seasonality (H2 stronger than H1) will be further accentuated by the consolidation of BroadPath, which exhibits even more pronounced second-half seasonality," JM Financial stated. "The anticipated 1.5–2 per cent cannibalization from AI has already been factored into the growth guidance, and management expects this impact to rise to 4–5 per cent over the next 2–3 years."
ICICI Securities, in a note dated May 16, commented: "The company has maintained its FY26 revenue growth and margin guidance, which is reassuring amid concerns over potential Medicaid spending cuts by the US government. We maintain our BUY rating with a revised target price of Rs 60 (up from Rs 56), based on an unchanged one-year forward P/E multiple of 26x."
Sagility India Ltd hit its lower circuit limit on Tuesday, as a promoter entity is eyeing 15.02 per cent stake sale via offer for sale (OFS) and meet minimum public shareholding norms. The stock hit its lower limit at Rs 40.72, and is off 28 per cent from its December 2024 high of Rs 56.44. The weakness on the counter was observed as the floor price set at Rs 38 was at nearly 12 per cent discount to Monday's closing price.
Sagility BV has proposed to sell up to 3,46,132,843 equity shares, representing 7.39 per cent of the company's total paid-up equity share capital. If the oversubscription option is fully exercised, the total number of shares offered—including the base offer and the oversubscription portion—will rise to 7,03,000,000 shares, equivalent to 15.02 per cent of the total paid-up equity capital.
The OFS has opened today for non-retail investors only. On Wednesday, May 28, 2025, bidding will open for retail investors as well as for non-retail investors who choose to carry forward their unallotted bids.
JM Financial noted that the company expects low to mid-teen organic growth in constant currency for FY26, with overall revenue growth projected to exceed 20% when factoring in the acquisition of BroadPath. Management reaffirmed its guidance for an adjusted EBITDA margin of 24–25% for FY26, excluding a 100–120 basis point negative impact from BroadPath.
"The company mentioned that its typical seasonality (H2 stronger than H1) will be further accentuated by the consolidation of BroadPath, which exhibits even more pronounced second-half seasonality," JM Financial stated. "The anticipated 1.5–2 per cent cannibalization from AI has already been factored into the growth guidance, and management expects this impact to rise to 4–5 per cent over the next 2–3 years."
ICICI Securities, in a note dated May 16, commented: "The company has maintained its FY26 revenue growth and margin guidance, which is reassuring amid concerns over potential Medicaid spending cuts by the US government. We maintain our BUY rating with a revised target price of Rs 60 (up from Rs 56), based on an unchanged one-year forward P/E multiple of 26x."