Sagility India IPO Launches on November 5, 2024, Aiming to Raise ₹2,106.6 Crore in a Pure Offer for Sale
Healthcare BPO Leader Targets U.S. Market with IPO Offering, Reserved for Institutional, Retail, and Employee Investors
BILKULONLINE
Ahmedabad, Oct 31: Sagility India Limited is preparing to open its initial public offering (IPO) on November 5, 2024, aiming to raise ₹2,106.6 crore with a price band of ₹28-30 per share.
The offering is a complete offer-for-sale by Sagility B.V., the promoter, without fresh share issuance, meaning all proceeds go to the selling shareholders. Sagility specializes in healthcare-focused services for U.S. clients, including claims processing and revenue cycle management.
With a lot size of 500 shares per retail investor, Sagility’s IPO will be listed on the BSE and NSE on November 12, and allocation is expected on November 8. ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the book-running lead managers for this IPO.
Ramesh Gopalan, MD & Group CEO Sagility India Ltd interacted with the media in Ahmedabad on Thursday. Amrita Sahney from IIFL Securities Ltd introduced the details of the company.
Ramesh Gopalan provided the details about the Sagility India Limited company.
IPO Overview:
• Opening Date: November 5, 2024
• Closing Date: November 7, 2024
• Price Band: ₹28 – ₹30 per share
• Lot Size: 500 shares per lot (Minimum investment of ₹15,000 for retail investors)
• IPO Type: Pure Offer for Sale (OFS) with no fresh issuance of shares
• Expected Listing Date: November 12, 2024, on both the NSE and BSE exchanges
• Anchor Investor Allocation Date: November 4, 2024
This offering is purely an OFS, where Sagility B.V., the promoter, is selling 70.22 crore shares, aiming to exit some of its holdings. Therefore, Sagility India will not receive funds directly from the IPO proceeds; instead, the funds will benefit the existing shareholders divesting their stake.
Objective of the Proceeds: Since the IPO comprises only an Offer for Sale, the funds raised will be directed solely toward the selling shareholders rather than for growth or operational expansion of the company. This aligns with the company’s strategy of providing an exit for Sagility B.V., enabling it to monetize part of its investment in Sagility India.
Company Profile:
• Industry Focus: Sagility India is a specialized business process outsourcing (BPO) provider focusing exclusively on the U.S. healthcare industry.
• Clientele: Its clients include U.S. health insurers (Payers) and healthcare providers, such as hospitals, diagnostic companies, and pharmacy benefit managers (PBMs).
• Core Services: Sagility offers a range of healthcare-focused services, including:
o Claims Processing: Administration and validation of claims for healthcare payers.
o Revenue Cycle Management: For providers, covering billing, collections, and managing claim reimbursements.
o Pharmacy Benefit Management Support: Administering prescription benefits under health insurance plans.
• Client Relationships: The company boasts long-term client loyalty, with its top five customers averaging 17 years of partnership as of March 2024
Sagility’s operations focus on back-office, non-voice transaction processing, enabling its healthcare clientele to streamline administrative workflows and focus on their core healthcare services. This specialization in healthcare BPO services has established Sagility as a key player in the industry, with a strong emphasis on U.S.-based customers, which allows the company to cater effectively to this lucrative market.
Financial Performance Highlights:
• Revenue (FY 2024): ₹4,781.5 crore, marking an increase from ₹4,236.06 crore in FY 2023.
• Net Profit (FY 2024): ₹228.27 crore, showing growth from ₹143.57 crore in FY 2023.
• Client Tenure and Market Position: With stable client retention and sustained growth, Sagility has leveraged its domain expertise to solidify its role in the U.S. healthcare outsourcing sector
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IPO Allocation Details:
• Qualified Institutional Buyers (QIBs): 75% of the offer is reserved.
• Non-Institutional Investors (NIIs): 15% allocation.
• Retail Investors: 10% allocation.
• Employee Reservation: Up to 19 lakh shares are reserved with a discount of ₹2 per share for eligible employees
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Book-Running Lead Managers and Registrar:
• Lead Managers: ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the book-running lead managers for the IPO.
• Registrar: Link Intime India Pvt Ltd is serving as the registrar.
Investment Considerations: Sagility India’s niche positioning in the healthcare BPO sector, combined with its stable client relationships and expanding revenue, make this IPO attractive for long-term investors. However, the IPO structure as a complete OFS limits immediate capital infusion for Sagility’s growth projects.
Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.
