Sagility India IPO

Sagility India IPO Details

Sagility India IPO Date

According to the offer document filed by the company with the SEBI, the Sagility India IPO’s opening date – in other words, the Sagility India IPO launch date – will be 5th November 2024. The Sagility India IPO closing date is 7th November 2024. After this, investors will be updated about the allotment status on 8th November 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 11 November 2024. The Sagility India IPO listing date is 12 November 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

Sagility India IPO Price Band

The IPO is an offer for sale. The Sagility India IPO price band has been set between ₹28 and ₹30 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Sagility India IPO listing price will be determined on 12th November 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Sagility India IPO Lot Size

The Sagility India IPO details have been declared. The Sagility India IPO lot size is set at 500 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Sagility India IPO issue size is approx ₹2106.60 crore. 

About Sagility India

Incorporated in 2021, Sagility India Limited provides technology-enabled business solutions and services to clients in the U.S. healthcare industry. Its clients include payers (U.S. health insurance companies that finance and reimburse the cost of health services) and providers (primarily hospitals, physicians, and diagnostic and medical devices companies). 

To payers, it offers claims management, payment integrity, clinical management such as utilisation, care, and population health management, and other services. It also provides some of these services to pharmacy benefit managers (PBMs). On the other hand, it offers revenue cycle management services to its providers. 

In FY2024, Sagility India helped payer clients process 105 million claims and handle over 75 million member and provider interactions. 

As of 30 June 2024, all its clients are located in the USA, and its talent pool is in five locations, including India, the Philippines, the U.S., Jamaica and Colombia. It served five of the top 10 payers by enrollment in the U.S. as of January 2024 and added 22 new clients between FY23 and Q1 FY25. 

The company also benefits from the sponsorship of EQT due to its strong capital, networks, and professional expertise. As of 30 June 2024, EQT had EUR 246 billion in assets under management. 

In FY24, the company's revenue from operations rose 12.6% year-on-year to ₹4,753 crore, while its net profit stood at ₹228.2 crore, up 59% during the same period. Moreover, the U.S. healthcare operations spend is expected to grow at a CAGR of ~5.25% to reach US$258.9 billion by 2028, which could benefit the company.

Now, Sagility India Limited is launching its initial public offer (IPO). The total IPO issue size is ₹2106.60 crore, comprising entirely of an offer for sale. The money raised from the issue will be received by the selling shareholders. Its shares will be listed on the NSE and BSE.

Company Name:  Sagility India

Company Established On: 28 July 2021

Company Type:  Public Limited Company

CEO/MD:   Ramesh Gopalan    

Financial snapshot

Sagility India IPO Analysis

Strengths and Opportunities

1. The company is a leader in the large and resilient U.S. payer and provider solutions market, as the U.S. economy was the highest spender on healthcare among leading economies.
2. Domain expertise in healthcare operations due to the pure-play nature of its business and 24+ years of business experience. 
3. It provides tech-enabled end-to-end service offerings that give it a competitive edge amongst business services firms, technology transformation firms, and back-office service providers. 
4. A suite of scalable, technology-enabled services and solutions, including platforms, RCM workflow tools, intelligent intake and content processing, analytics, speech processing and interaction analytics, automation, and gen AI.
5. Clients include one of the largest U.S.-based hospital networks, three of the top six PBMs, and other large diagnostic laboratories, hospitals, DMEs, and radiology companies.
6. High client retention: As of 30 June 2024, the company's five largest client groups had an average tenure of 17 years.
7. It has a multi-shore, scalable, and flexible delivery model, providing services from 31 locations in five countries with 35,858 employees as of 30 June 2024. 
8. Strong financial performance with EBITDA margins of 24% and 23% in FY23 and FY24, respectively.

Risks and threats

1. Operates in a highly competitive industry and faces competition from CorroHealth, Shearwater Health, Omega Healthcare, Accenture, Cognizant, EXL, Optum, Cotiviti, FinThrive, Epic Systems, and ResultsCX.
2. Solely focused on the U.S. healthcare industry and might be adversely affected by factors like the decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.
3. Its ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws and laws of the relevant international jurisdictions.
4. Incurs high employee benefit expenses, accounting for 61% of its revenue from operations and has an attrition rate of 25% as of FY24.
5. It has no comparable listed peers operating in the healthcare-only focused payer and provider markets.
6. It derives significant revenues from its top three clients, accounting for 66% of its revenue from operations as of FY24.
7. Has witnessed negative cash flows from operating activities between 28 July 2021 and 31 March 2022 and from investing and financing activities in FY23 and FY24 consecutively.
8. Reported a restated loss of ₹4.67 crore between 28 July 2021 and 31 March 2024.
9. Business is subject to seasonality.
10. International operations expose it to complex management, legal, tax and economic risks, and exchange rate fluctuations. 

How to apply for the Sagility India IPO?

If you are interested to invest in Sagility India IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Sagility India IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app