₹ 15000 / 500 shares
IPO Details
RHP/DRHPIssue Date
05 Nov - 7 Nov'24
Investment/lot
₹ 15000
Price Range
28 - 30
Lot Size
500
IPO Size
₹ 2106.60 Cr
IPO Listing Details
Listing On
12 Nov'24
Issue Price
30
Listed Price
₹ 31.06
Retail Gain/Listing Gain
▲3.53%
IPO Timeline
Sagility India Company Background
Sagility India Limited provides technology-enabled business solutions and services to clients in the U.S. healthcare industry. They are a pure-play healthcare focused services provider, and their clients include Payers (U.S. health insurance companies, which finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
Retail and HNI Applications
The retail portion of the Saigility India IPO consists of not less than 7,00,29,926 equity shares of face value of ₹10. Not less than 10% of the net offer is for retail individual bidders
Sagility India IPO Key Points
Subscription details:
Qualified Institutional Buyer: 75%
Non-Institutional Buyer: 15%
Retail: 10%
Potential benefit for investors:
The company has a strong order book driven by a clientele that includes a large network od U.S. based hospitals and Payers. By investing in Sagility India Limited IPO, the investor gets to be a part of a company that has an established and diverse clientele.
The company’s financials have shown a steady increase over the last few years. EBITDA has increased from 2105 crores in 2022 to 11,160 crores in FY24, showing a whopping 430% increase and PAT margin has grown from 7.17% in FY22 to 12.40% in FY24. By investing in Sagility India Limited IPO, one can be part of a company that is growing rapidly and one whose finances are in order.
Anchor Investors:
The anchor investor bid opens and ends on Nov 4, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.
Book Running lead managers:
Name of the book running lead managers are
ICICI Securities Limited.
IIFL Securities Limited
Jefferies India Private Limited
J.P. Morgan India Private Limited
Sagility India IPO Review | IPO Issue details | Financials and other key highlights
Kotak Securities
•03m 07s
Sagility India Key Financials
| Particulars | As of March 2024 | As of March 2023 | As of March 2022 |
|---|---|---|---|
Revenue from Operations | 47,535.57 | 42,184.08 | 9,234.07 |
Total Equity and Liability | 1,06,641.96 | 1,05,904.76 | 1,00,962.80 |
Return on average net worth (%) | 3.54% | 2.31% | (0.12%) |
All Financial Information about Sagility India Limited
Presentation of key financial metrics and indicators to assess Sagility India financial health.
Particulars (in Rs. million)
Particulars (in Rs. million)
Annual Financial Report of Sagility India Limited
| Particulars (in ₹ Million) | As of 31st March, 2024 | As of 31st March, 2023 | As of 31st March, 2022 |
|---|---|---|---|
Total Income | 47,815.04 | 42,360.60 | 9,443.94 |
Profit/(Loss) before tax | 2,416.81 | 1,856.77 | (18.54) |
Net profit/(loss) | 2,404.69 | 3,764.41 | 354.92 |
EPS | 0.53 | 0.33 | (0.05) |
EBITDA | 11,160.37 | 10,448.64 | 2,105.72 |
Sagility India IPO Strengths
Leader in the large and resilient U.S. Payer and Provider solutions market
The company has become one of the largest tech-enabled healthcare specialists (by revenue) with coverage across payer and provider markets (Source: Everest Report). Within the healthcare operations outsourced market, they had a share of approximately 1.18% and approximately 1.23% in 2022 and 2023 respectively (Source: Everest Report).
They were ranked as a leader by Avasant in their Clinical Services Business Process Transformation Radar View report 2023 and as a Leader in Everest’s Healthcare Payer Operations PEAK Matrix Assessment 2023 (Source: Everest Report).
Deep, long-term, expanding client relationships across healthcare Payers and Providers
As of January 2024, they served five of the top 10 Payers by enrolment in the U.S. (Source: Everest Report). Their clients also include one of the largest U.S.-based hospital networks in terms of revenue as of January 2024, three of the top 6 PBMs by claims volume (Source: 170 Everest Report), and other large diagnostic laboratories, hospitals, DMEs and radiology companies. As of June 30, 2024, their five largest client groups had an average tenure of 17 years with the Business.
Strong financial performance and high margins
The Business has consistently increased the scope of services provided to clients and the number of clients, leading to growth in revenues in prior periods. Their revenue from operations grew by 9.61% to ₹12,233.28 million for the quarter ended June 30, 2024 from ₹11,160.93 million for the quarter ended June 30, 2023, and by 12.69% to ₹47,535.57 million in Financial Year 2024 from ₹42,184.08 million in FY 2023.
Sagility India IPO Risk Factors
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Their business is solely focused on the U.S. healthcare industry and may be adversely affected by factors affecting the U.S. healthcare industry, including a decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.
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The company has in the 12 months preceding the date of this Red Herring Prospectus, issued Equity Shares at a price which may be significantly lower than the Offer Price.
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One of their Independent Directors has received summons in relation to an ongoing investigation by SEBI of Linde India Limited and the matter is currently pending.
Key Strategies of Sagility India Limited
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Strengthen relationships with existing clients, expand offerings and increase share of their wallets
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Enhance portfolio of technology tools and platforms
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Pursue strategic acquisitions and collaborations
Conclusion
Sagility India has been in the leadership position of the industry for some time now. Coupled with that, the company’s comprehensive product range, its skillful workforce and its wide range of clients give it a solid foundation for future growth. If you want to invest in the IPO, ensure you do your homework and assess the risks and challenges thoroughly.
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
Sagility India IPO FAQs
When is Sagility India IPO listing date?
Sagility India IPO will list on 2024-11-12.
What is the issue size of Sagility India IPO?
2106.60 is the issue size of Sagility India IPO.
What is the minimum lot size required for Sagility India IPO?
The minimum lot size is 500 shares and the investment required is ₹15000.
What is the price band of the Sagility India IPO?
The price band of Sagility India IPO is ₹28 to ₹30.
Where can I read more about Sagility India business?
You can read more about Sagility India and its IPO from the company’s red herring prospectus (RHP) here.
What is the Sagility India Limited IPO?
The Sagility India Limited IPO has an issue size of ₹2106.22 crores. The IPO opens for subscription on 05/11/2024 and closes on 07/11/2024.
Who is the Registrar for Sagility India Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
