Sagility India Limited is set to open its initial public offering (IPO) for public bidding on Tuesday, November 5, 2024, and it will close on Thursday, November 7, 2024. The Bengaluru-based healthcare service provider has set the price band at ₹28 to ₹30 per share.
Key details about Sagility India’s IPO
- IPO Size: Sagility India aims to raise ₹2,106.60 crore through this IPO, which is structured entirely as an offer-for-sale (OFS) by its Netherlands-based promoter, Sagility BV. The OFS includes a sale of 70.22 crore equity shares.
- Listing Date: The IPO is tentatively expected to list on the BSE and NSE on Tuesday, November 12, 2024.
- Anchor Round: The anchor investor round is scheduled for Monday, November 4.
- Investor Reservation: Of the net offer, up to 75% is reserved for Qualified Institutional Buyers (QIBs), with a portion allocated for anchor investors. Retail investors can access 10% of the issue, while Non-Institutional Investors (NII) have 15% reserved.
- IPO Proceeds: All proceeds from the IPO will go to Sagility BV, the selling promoter, as Sagility India will not receive any funds from this public issue.
- Grey Market Premium: The grey market premium (GMP) for Sagility India’s IPO is ₹3 as of November 3, indicating a possible listing price of around ₹33.
- Merchant Bankers and Registrar: The IPO’s book-running lead managers include ICICI Securities, IIFL Securities, Jefferies India Private Limited, and J.P. Morgan India Private Limited. The registrar for the issue is Link Intime India.
- Minimum Investment: Retail investors can participate with a minimum investment of around ₹15,000 per lot, while non-institutional investors must invest at least ₹2,10,000 for 14 lots.
Just days before its initial public offering opens on November 5, Sagility India’s parent company, Sagility BV, raised ₹366 crore by selling a 2.61% stake to nine institutional investors.
Sagility India’s financial overview
Sagility reported revenue of ₹1,247.76 crore and a profit-after-tax of ₹22.29 crore for the quarter ending June 30, 2024. For FY24, the company’s revenue grew by 12% year-on-year to reach ₹4,781.5 crore, with profits increasing by 59% to ₹228.27 crore.
Competitive landscape
Although Sagility India does not face direct competition in the Indian market, it competes globally with healthcare-focused companies like CorroHealth and Shearwater Health, as well as IT giants like Accenture and Cognizant.
Sagility India provides a range of services, including claims management, care management, and revenue cycle operations, primarily for US-based health insurers and providers. The company operates five service delivery centers across India, the Philippines, the US, Jamaica, and Colombia.
The Sagility India IPO offers investors an opportunity to invest in a niche player in the healthcare services sector, which has been experiencing growth in the Indian market.
