Sagility India Announces IPO Plans, No Fresh Issue, Only Offer-For-Sale

Sagility India, a technology-based healthcare solutions and services provider, has filed a draft red herring prospectus (DRHP) with SEBI to raise funds through an initial public offering (IPO). The company's headquarters are located in Bengaluru, India.
Sagility India IPO

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There is no fresh issue component; it is only an offer-for-sale (OFS) of 98,44,60,377 equity shares. Sagility BV, an affiliate of EQT Private Capital Asia and the only promoter and shareholder of Sagility India, will sell these shares, which make up the whole amount of the public issue.

Sagility India is providing healthcare-focused solutions, focusing mainly on the US health insurance market. This supports the core operations of both payer and provider clients. US health insurance companies are payers, and hospitals, physicians, and diagnostic and medical device companies are providers. In 2024, the Payers division accounted for 90.26% of the revenue, with the Providers segment accounting for the remaining 9.74%.

Even though operating margins were difficult, Sagility India’s fiscal year ended in March 2024 and saw strong financial performance. The company’s consolidated net profit increased to Rs 228.3 crore, up 59% year over year, because of lower tax expenses, lower financing costs, and higher other income. During the same period, revenue from operations increased by 12.7% to Rs 4,753.6 crore. EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 5.9% year over year to Rs 1,088 crore in the operating domain; however, the margin decreased by 150 basis points to 22.9% in comparison to the prior year.

Sagility India holds the prime position in the Indian market by offering back-office transaction processing and non-voice business process management services that are specifically customized for the insurance and healthcare industries. Its products serve a specialized market, with no direct competitors listed in India.

The merchant bankers for the offering are Jefferies India, JP Morgan India, ICICI Securities, and IIFL Securities. Sagility’s market potential and growth trajectory within the healthcare technology domain are further supported by this group.

The move by Sagility India to go public is significant for the business as it looks to build on its existing position in healthcare technology solutions. This upcoming IPO is mainly motivated by an offer-for-sale and reflects the company’s current performance and prospects in light of shifting industry dynamics.

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