Sagility India IPO: Offer size to business model, check key details about ₹2,107-crore issue

Sagility India IPO: Healthcare services provider Sagility India aims to raise more than ₹2,100 crore via its initial public offering. The mainboard issue entirely consists of an Offer-For-Sale (OFS) of 70.22 crore shares.

Sagility India IPO subscription window will remain open from Tuesday, November 5, to Thursday, November 7. Ahead of the opening of the public offer, here are the key details about the Sagility India IPO, the investors should watch out for:

Sagility India IPO offer size, price band and minimum investment

The price band has been fixed at ₹28-₹30 per share. Retail investors can apply for a minimum single lot size of 500 shares, which aggregates to an investment of ₹15,000.

The minimum lot size for small non institutional investors (sNII) is 14 lots, or 7,000 shares, which amounts to an investment of ₹2,10,000. The application size for big non institutional investors (bNIIs) is 67 lots, or 33,500 shares, which translates to an investment of ₹10,05,000.

As much as 75% of the net issue size has been set aside for the qualified institutional buyers category. The company has reserved 10% of the net issue for retail individual investors and 15% for the non institutional investors (NII) category.

Sagility India IPO dates

Sagility India IPO will open subscription on Tuesday, November 5. The three-day bidding window will close on Thursday, November 7. The share allotment status is scheduled to be finalised on Friday, November 8.

The company will initiate refunds and transfer of shares into the Demat accounts on Friday, November 8. Shares of Sagility India will be listed on the NSE and BSE. The listing date has been tentatively fixed as November 12.

Sagility India: Financials and key competitors

Sagility India’ revenue increased more than 12% to ₹4,781.5 crore in FY24 against ₹4,236.06 crore in FY23. The company’s PAT surged nearly 59% to ₹228.27 crore in FY24 compared to ₹143.57 crore in FY23. Sagility India’s net worth in FY24 marginally increased to ₹6,443.13 crore against ₹6,206.67 crore in the preceding fiscal.

While Sagility India does not have any listed peers in India, it competes with healthcare specialists such as CorroHealth, Shearwater Health and Omega Healthcare. The company also competes with broad-based IT and business services firms such as Accenture, Cognizant, and EXL. Sagility India may also face competition from companies, which specialise in providing products or solutions for the healthcare industry, such as Optum, Cotiviti, FinThrive, and Epic Systems. Some of the company’s other competitors are Customer Experience (CX) firms with presence in the healthcare market such as ResultsCX.

Sagility India IPO: Business model

Sagility India is a provider of business solutions and services to clients in the healthcare industry in the United States. The company’s clients include Payers (US health insurance companies, which finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).

The company's services portfolio include providing services for claims management, enrolment, benefits plan building, premium billing, credentialing and other such services. The company also offers services for clinical functions such as utilisation management, care management and population health management.

The company also provides services to providers such as revenue cycle management functions, financial clearance, medical coding and billing. The company operates through five service delivery locations across India, Philippines, US, Jamaica and Colombia.

Sagility India IPO: Key strengths and weaknesses

Weaknesses

• The company mentioned in its RHP that it is exposed to counterparty credit risk and any delay in receiving payments or not receiving payments can adversely impact its business and financial condition.
• It has to comply with stringent data protection laws which restrict collection, use and disclosure of health information. Failure of compliance as per laws could affect the company’s operations.
• As a significant portion of its business is attributable to certain large client groups in the US, its business is dependent heavily on continuing relationships with such clients.
• The fluctuations in general economic activities affect the company’s businesses significantly. Any volatility or change in macroeconomic conditions could negatively impact the business.

Strengths

• The company has a leadership position in the large and resilient US Payer and Provider solutions market. It is likely to benefit from expected growth in the US healthcare services market and outsourcing trends.
• The company claims to have domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers.
• Sagility India said in its RHP that it has a suite of scalable, technology-enabled services and solutions, supported by proprietary tools and platforms, which help in serving the entire spectrum of its Payer clients’ operations and healthcare Provider clients’ revenue cycle management functions.
• Sagility India has long-term, expanding client relationships across healthcare Payers and Providers networks. The company claims to have high client retention.

About Sagility India

Sagility India Limited provides healthcare-focused solutions and services to US health insurers and providers of healthcare services such as hospitals, physicians, diagnostics and medical technology companies. All of the company’s clients are based in the US. The company employed a total of 35,044 workers at the end of FY 2024.