Sagility India IPO Details
Issue Date
--
Price Range
₹28 - ₹30
Lot Size
500
IPO Size
₹2106.60 Cr
Sagility India IPO Listing Details
Listing On
12 Nov'24
Issue Price
₹30
Listed Price
₹ 31.06
Retail Gain/Listing Gain
▲3.53%
Schedule of Sagility India IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
12/11/2024
Sagility India Company Background
Sagility India Limited provides technology-enabled business solutions and services to clients in the U.S. healthcare industry. They are a pure-play healthcare focused services provider, and their clients include Payers (U.S. health insurance companies, which finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
Retail and HNI Applications
The retail portion of the Saigility India IPO consists of not less than 7,00,29,926 equity shares of face value of ₹10. Not less than 10% of the net offer is for retail individual bidders
Sagility India IPO Key Points
Subscription details:
Qualified Institutional Buyer: 75%
Non-Institutional Buyer: 15%
Retail: 10%
Potential benefit for investors:
The company has a strong order book driven by a clientele that includes a large network od U.S. based hospitals and Payers. By investing in Sagility India Limited IPO, the investor gets to be a part of a company that has an established and diverse clientele.
The company’s financials have shown a steady increase over the last few years. EBITDA has increased from 2105 crores in 2022 to 11,160 crores in FY24, showing a whopping 430% increase and PAT margin has grown from 7.17% in FY22 to 12.40% in FY24. By investing in Sagility India Limited IPO, one can be part of a company that is growing rapidly and one whose finances are in order.
Anchor Investors:
The anchor investor bid opens and ends on Nov 4, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.
Book Running lead managers:
Name of the book running lead managers are
ICICI Securities Limited.
IIFL Securities Limited
Jefferies India Private Limited
J.P. Morgan India Private Limited
Sagility India IPO Review | IPO Issue details | Financials and other key highlights
Kotak Neo
•03m 07s
Sagility India Key Financials
Revenue from Operations | 47,535.57 | 42,184.08 | 9,234.07 |
Total Equity and Liability | 1,06,641.96 | 1,05,904.76 | 1,00,962.80 |
Return on average net worth (%) | 3.54% | 2.31% | (0.12%) |
All Financial Information about Sagility India Limited
Presentation of key financial metrics and indicators to assess Sagility India financial health.
Annual Financial Report of Sagility India Limited
Total Income | 47,815.04 | 42,360.60 | 9,443.94 |
Profit/(Loss) before tax | 2,416.81 | 1,856.77 | (18.54) |
Net profit/(loss) | 2,404.69 | 3,764.41 | 354.92 |
EPS | 0.53 | 0.33 | (0.05) |
EBITDA | 11,160.37 | 10,448.64 | 2,105.72 |
Sagility India IPO Strengths
Leader in the large and resilient U.S. Payer and Provider solutions market
The company has become one of the largest tech-enabled healthcare specialists (by revenue) with coverage across payer and provider markets (Source: Everest Report). Within the healthcare operations outsourced market, they had a share of approximately 1.18% and approximately 1.23% in 2022 and 2023 respectively (Source: Everest Report).
They were ranked as a leader by Avasant in their Clinical Services Business Process Transformation Radar View report 2023 and as a Leader in Everest’s Healthcare Payer Operations PEAK Matrix Assessment 2023 (Source: Everest Report).
Deep, long-term, expanding client relationships across healthcare Payers and Providers
As of January 2024, they served five of the top 10 Payers by enrolment in the U.S. (Source: Everest Report). Their clients also include one of the largest U.S.-based hospital networks in terms of revenue as of January 2024, three of the top 6 PBMs by claims volume (Source: 170 Everest Report), and other large diagnostic laboratories, hospitals, DMEs and radiology companies. As of June 30, 2024, their five largest client groups had an average tenure of 17 years with the Business.
Strong financial performance and high margins
The Business has consistently increased the scope of services provided to clients and the number of clients, leading to growth in revenues in prior periods. Their revenue from operations grew by 9.61% to ₹12,233.28 million for the quarter ended June 30, 2024 from ₹11,160.93 million for the quarter ended June 30, 2023, and by 12.69% to ₹47,535.57 million in Financial Year 2024 from ₹42,184.08 million in FY 2023.
Sagility India IPO Risk Factors
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Their business is solely focused on the U.S. healthcare industry and may be adversely affected by factors affecting the U.S. healthcare industry, including a decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.
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The company has in the 12 months preceding the date of this Red Herring Prospectus, issued Equity Shares at a price which may be significantly lower than the Offer Price.
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One of their Independent Directors has received summons in relation to an ongoing investigation by SEBI of Linde India Limited and the matter is currently pending.
Key Strategies of Sagility India Limited
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Strengthen relationships with existing clients, expand offerings and increase share of their wallets
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Enhance portfolio of technology tools and platforms
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Pursue strategic acquisitions and collaborations
Conclusion
Sagility India has been in the leadership position of the industry for some time now. Coupled with that, the company’s comprehensive product range, its skillful workforce and its wide range of clients give it a solid foundation for future growth. If you want to invest in the IPO, ensure you do your homework and assess the risks and challenges thoroughly.
Sagility India IPO FAQs
The Sagility India IPO opens for subscription from [-] to [-], with a total issue size of ₹2106.60 Cr. The IPO price band is ₹28 to ₹30 per share with a lot size of 500. The company aims to list the shares on BSE & NSE on 12-11-2024.
The Sagility India IPO will open for subscription on [-] and will close on [-] for investors.
The minimum lot size for the Sagility India IPO is 500 equity shares, requiring a minimum investment of ₹15000 for retail investors applying in the IPO.
The price band of the Sagility India IPO has been fixed at ₹28 to ₹30 per equity share.
You can apply for the Sagility India IPO online through the Kotak Neo Website or the Kotak Neo App using UPI or ASBA during the IPO subscription period.
Sagility India IPO allotment will take place on [-].
You can check the Sagility India IPO allotment status online on the registrar’s website or on the NSE and BSE IPO allotment pages using your application number, PAN, or demat account details.
Sagility India shares will list on the stock exchanges on 12-11-2024.
You can find detailed information about the Sagility India IPO, including its business operations, financial performance, risk factors, and IPO objectives, in the Draft or Red Herring Prospectus (RHP).
The Sagility India Limited IPO has an issue size of ₹2106.22 crores. The IPO opens for subscription on 05/11/2024 and closes on 07/11/2024.
Link Intime India Private Limited is the registrar for this IPO.
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
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