Sagility India files draft papers with SEBI to float IPO; check details

Healthcare sector technology-enabled services provider Sagility India has filed preliminary papers with SEBI to launch an initial public offering (IPO).

The proposed public issue is completely an offer for the sale of 98.44 crore equity shares by promoter Sagility BV, as per the Draft Red Herring Prospectus (DRHP).

As it is entirely an OFS, the Bengaluru-based company will not get any proceeds from the IPO, and the funds will go to the shareholders who are offloading their stake.

The company said that the motive behind the public offer is to gain benefits of listing the shares on stock exchanges, which could increase its visibility and brand image and provide liquidity to its shareholders.

About Sagility India

Sagility India offers technology-driven services to US health insurance firms (that finance and reimburse the cost of health services), as well as providers (primarily hospitals, physicians, and diagnostic and medical device companies).

Sagility had acquired BirchAI, a healthcare technology company specialising in cloud-based generative artificial intelligence (AI) technology, in March 2024.

The company said that the acquisition would help in reducing clients' operational costs by providing AI-powered customer support solutions using large language models (LLMs) and speech-to-text combined with Sagility's engagement solutions.

The company has 35,044 employees, which includes 60.52% women, as of March 31, 2024.

The company had reported a 12.7% increase in its revenue from operations to ₹4,753.5 crore in financial year 2023-24 as compared to ₹4,218.4 crore in the corresponding period last year.

Its net profit jumped 50% to ₹228.2 crore in FY24, up from ₹143.5 crore in the previous fiscal year.

IIFL Securities, ICICI Securities, JP Morgan India and Jefferies India are the book-running lead managers for the issue. The company's shares are expected to be listed on the BSE and NSE.