
Shares of Sagility India Ltd hit an upper circuit during the trading session on Thursday, after its step-down subsidiary Sagility LLC announced acquisition of BroadPath Healthcare Solutions, a US healthcare focused services company. The recently listed counter was locked in the upper circuit of 5 per cent to Rs 47.73, with a total market capitalization close to Rs 22,500 crore.
Sagility India announced its acquisition of BroadPath Healthcare Solutions, a US healthcare focused services company, headquartered in Tucson, Arizona, US, said the company in an exchange filing on Wednesday. Sagility India is a leading tech-enabled business operations solutions and services provider in the healthcare sector.
According to the term sheet uploaded on the exchanges, the acquisition has been done on cash consideration amounting to Rs 502 crore, for the entire 100 per cent stake in the company. As this is a US domiciled business there is no statutory requirement for its financial statements to be audited under local laws, said the company.
BroadPath operates a work-from-home delivery model with over 1600 employees located across the US and Philippines. Its service portfolio includes member engagement, member acquisition, claims and appeals administration, provider enrollment and credentialing, the filing added.
Listed in November 2024, Sagility India sold its shares for Rs 30 apiece. The company raised a total of Rs 2,106.60 crore via its IPO and the stock is currently 59 per cent up from its IPO price. However, it scaled highs of Rs 56.44 a month ago, but it's still down 15 per cent from its all-time highs.
Sagility India, formerly known as Berkmeer India, provides healthcare-focused solutions and services to payers (US health insurers who fund and reimburse the cost of healthcare services) and providers (primarily hospitals, physicians, diagnostics and medical technology companies).
Earlier this month, Axis Capital initiated coverage on Sagility India with a 'buy' rating and a target price of Rs 60, based on 17 times March 27E EV/Ebitda. Sagility stands out for its steady growth and superior margin profile, with the BPM space driven by higher offshore-mix, it said.
"High client concentration remains a risk, but some progress in broad-basing growth across its client base in the recent past. Also, We see less reason to worry about Sagility India’s focus on a single vertical (healthcare), given its large TAM and prior execution supported by a stable and tenured leadership team," Axis added.
Overseas brokerage firm JP Morgan gave it an 'overweight' rating with a target price of Rs 54, while ICICI Securities recommended to buy Sagility India shares with a target price of Rs 55.