Just days before its initial public offering opens on November 5, Sagility India's parent firm Sagility BV raised ₹366 crore by offloading a 2.61% stake to nine institutional investors.
The shares were sold at ₹30 each, the upper limit of the IPO’s price band, bringing in crucial capital ahead of the public offering.
The Bengaluru-based healthcare services provider plans to raise ₹2,107 crore through the IPO, which is structured entirely as an offer-for-sale. Retail investors can buy in for as little as ₹15,000 per lot, while larger non-institutional investors will have to pony up at least ₹2,10,000 for 14 lots. With 75% of the issue reserved for institutional buyers, only 10% will be available to retail participants, and 15% to non-institutional investors.
Sagility’s financials paint a mixed picture. Revenue for the quarter ending June 30, 2024, was ₹1,247.76 crore, with a profit-after-tax of ₹22.29 crore. Year-on-year, the company reported a revenue increase of 12% in FY24, totaling ₹4,781.5 crore, while profits surged 59% to ₹228.27 crore.
Despite no direct competitors in the Indian market, Sagility India faces stiff competition globally from healthcare specialists like CorroHealth and Shearwater Health, as well as IT giants like Accenture and Cognizant.
The company provides services such as claims management, care management, and revenue cycle operations to US-based health insurers and providers, leveraging five service delivery locations across India, the Philippines, the US, Jamaica, and Colombia.
Trade analysts are keenly observing how Sagility India will fare amid market volatility. “Both the pre-IPO stake sale and the upcoming public offering will test investor confidence,” an analyst remarked.
The IPO is expected to close on November 7, with shares scheduled for listing on the NSE and BSE on November 12.