Table of Contents
Introduction to the IPO
Sagility India Private Limited, a provider of healthcare-focused solutions, is set to open its initial public offering (IPO) for subscription on November 5, 2024. This IPO is structured entirely as an Offer for Sale (OFS), where Sagility’s parent company, Sagility B.V., will offload 702.2 million shares. At the top of the price band, Sagility aims to raise around ₹2,106.6 crore. Anchor investors have the opportunity to bid a day earlier, on November 4.
IPO Structure and Pricing
The Sagility India IPO consists only of an OFS, meaning no new shares will be issued by the company itself. Instead, existing shares will be sold by the promoter. Shares will be offered at a price band of ₹28 to ₹30 per share, with a minimum lot size of 500 shares. Retail investors will need at least ₹15,000 to participate in one lot.
Grey Market Insights
According to reports, Sagility’s shares have been trading flat in the grey market. This trend reflects cautious interest from potential investors, although grey market prices can shift as the official subscription period begins.
Key IPO Dates and Listing Information
- Open Date: November 5, 2024
- Close Date: November 7, 2024
- Allotment Date: November 8, 2024
- Demat Credit Date: November 11, 2024
- Listing Date: November 12, 2024
- Exchanges: BSE and NSE
Link Intime India will serve as the registrar for this IPO. The book-running lead managers include ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India.
Purpose and Use of Funds
The IPO aims to achieve two objectives. First, it intends to benefit from listing the equity shares on major stock exchanges. Second, it allows the promoter to reduce their stake in Sagility India. As the IPO is an OFS, the proceeds will go directly to Sagility B.V., not the company itself.
About Sagility India
Sagility India was founded in 2022, initially under the name Berkmeer India. The company provides comprehensive healthcare solutions to U.S.-based health insurers (payers) and healthcare providers (such as hospitals and medical technology companies). Sagility’s services span claims administration, clinical management, and revenue cycle management. Sagility also works with Pharmacy Benefit Managers (PBMs), assisting with the administration of prescription drug coverage for insured patients.
Financial Performance
Sagility India has demonstrated solid revenue generation, though profitability has varied year by year. For the fiscal year 2024 (FY24), Sagility recorded total comprehensive income of ₹240.46 crore, down from ₹376.44 crore in FY23 but significantly higher than ₹35.49 crore in FY22. This variance suggests both growth potential and challenges in maintaining consistent profitability.
Final Thoughts
Sagility India’s IPO presents an opportunity for investors to participate in the healthcare solutions sector, especially targeting the U.S. market. While Sagility has carved out a strong presence in healthcare claims and clinical management, its financial performance has been variable. This IPO allows Sagility’s parent company to exit some of its holdings while offering new investors a chance to enter a growing sector. For investors, understanding Sagility’s business model and the volatility of its recent income will be key in evaluating this IPO’s potential.
