The increase in healthcare insurance is growing with the population. Even the health cost is rising with inflation. Here we have Sagility India which is into U.S. payer and provider their promoters are looking to sell their partial holdings by selling through the market.
About Sagility India IPO
Sagility India India Limited is set to launch its Initial Public Offering (IPO) which consists of an offer for sale of Rs. 2,106.60 crore. The IPO is done by companies to raise funds for their various corporate purposes and includes expansion and debt repayment. The offer will be conducted through a book-building process and is scheduled to open on November 5, 2024, and close on November 7, 2024, and is expected to be listed on the bourses dated 12th November 2024.
About Sagility India GMP
The shares of Sagility India price in the grey market were trading at 0% as of November 04th, 2024. The shares in Grey Market traded at Rs.30. The premium was Rs. 33 on November 3rd, 2024 which was 10% over the issue price. The GMP was Rs. 0 a day later.
About Sagility India (Overview and Business Model)
The company specializes in providing technology-enabled business solutions and services to the U.S. healthcare sector which focuses on both Payers (health insurance companies) and Providers (hospitals and physicians). They offer a range of services, including claims management, utilization management, and revenue cycle management. The company leverages advanced technology and a skilled workforce across five global delivery centers which include India, the Philippines, the U.S., Jamaica, and Colombia.
Their business model is mainly on delivering efficient operational support to clients by automating processes and improving service quality. The company has established long-term relationships with its clients, with an average tenure of 17 years among its largest client groups. By continually expanding its service offerings and client base through strategic acquisitions and organic growth, it aims to strengthen its position in the healthcare industry.
Sagility India Financials
The company’s revenue from operations stood at Rs. 4,753.55 crore in FY24, a 12% growth from Rs. 4,218.40 crore in FY23. Net Profits stood at Rs. 228.26 crore in FY24 which is an increase of 59% from Rs. 143.57 crore.
The reduction in other expenses as compared to revenue is lower in FY24. The finance cost has also reduced year on year and even lower current tax has ensured better profits.
These operational efficiencies in the longer run can help companies during the industry downturns. There was a slight increase in employee cost compared to operational revenue however, the PAT saw growth higher than revenue.
The return on net worth in FY24 stood at 3.54% which has increased from 2.31% from a year ago. There was a slight reduction in debt, as their net debt to adjusted equity ratio in FY24 stood at 0.34 times improved from 0.37 times in FY23.
Sagility India vs. Peers
In RHP, the Company that is healthcare-only focused across the Payer and Provider markets, they have no listed companies in India or abroad that provide service to U.S. healthcare enterprises that are comparable.
Strengths of Sagility India
● Leader in the US Payer and provider solutions market.
● Scalable suite, technology-enabled services, and solutions that are supported by proprietary tools and platforms.
● Long-term and expanding client relationships in the healthcare payers and providers space.
● Domestic expertise in healthcare operations which providing end to end services offerings to providers and payers.
● Multishare, flexible and scalable delivery model with data protection and service standards.
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Risks to Sagility India
● The business is solely focused on the US Healthcare industry and any downturn can affect the company’s business.
● Goodwill and intangible assets form a major part of the assets and impairment can affect financial condition.
● The Sagility B.V holdings are pledged and any default can cause a change in control of the company.
● Any downgrade in credit ratings could affect the company adversely especially to raise capital in the foreseeable future.
● The increasing employee cost is not controlled it can affect the profit margins and affect its operations.
Sagility India Promoter
The promoters of Sagility India are Sagility B.V. and Sagility Holdings B.V. They play a crucial role in the company’s direction and management.
Sagility India Selling Shareholders
The selling shareholders in the IPO include Sagility B.V: Offering 70,21,99,262 equity shares with a weighted average acquisition cost of Rs. 20.79 per equity share. These shares will be sold as a whole part of the offer-for-sale of the IPO. Sagility B.V. is an affiliate of EQT Private Capital Asia.
Sagility India Lead Managers
The lead managers for the IPO are ICICI Securities Limited, IIFL Securities Limited, Jefferies India Private Limited, and J.P. Morgan India Private Limited. Link Intime India Private Limited is the Registrar of the offer. They are responsible for managing the entire IPO process which includes pricing, marketing, and ensuring compliance with regulatory requirements.
Sagility India IPO’s Objectives of Offer
There are no objectives of the IPO as the issue includes only an offer for sale from its promoter.
Written By – Santhosh S
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