Sagility India IPO

Sagility IPO is a book-built issue valued at ₹2,106.60 crores, comprising a complete offer for sale of 70.22 crore shares. The IPO opens for public subscription on November 5, 2024, and closes on November 7, 2024. The allotment is anticipated to be finalized on November 8, 2024, with the listing scheduled on BSE and NSE for November 12, 2024. The price band for the IPO is set between ₹28 and ₹30 per share.

Retail investors can invest with a minimum lot size of 500 shares, requiring an investment of ₹15,000. The minimum investment for small non-institutional investors (sNII) is 14 lots (7,000 shares) at ₹2,10,000, while large non-institutional investors (bNII) have a minimum investment of 67 lots (33,500 shares) at ₹10,05,000. A reservation of 19 lakh shares is available for employees at a ₹2 discount per share.

Industry Outlook:

1. In 2023, the U.S. healthcare operations spending reached approximately $201.1 billion (₹16.8 trillion), projected to grow at a 5.2% CAGR, hitting $258.9 billion (₹21.6 trillion) by 2028.
2. Healthcare expenditure, constituting 17.1% of U.S. GDP in 2023, is expected to rise to 6.1 trillion (₹509.8 trillion) by 2028 at a 5.5% CAGR.

Sagility India IPO Objectives

The company will not receive any proceeds from the sale. All proceeds, after deducting offer-related expenses and taxes, will go to the Promoter Selling Shareholder.

About Sagility India Limited

Sagility India Limited, previously known as Berkmeer India Private Limited, specialises in healthcare solutions for U.S.-based health insurers (payers) and healthcare providers (hospitals, physicians, diagnostics, and medical technology companies).

Sagility supports payers with a wide range of operational services, including centralised claims administration, payment integrity, and clinical management. For providers, the company offers revenue cycle management to streamline billing and claim processes with payers. Additionally, Sagility extends services to Pharmacy Benefit Managers (PBMs), managing prescription drug coverage for insured members under health benefit plans.

All clients are U.S.-based, with the top five customer groups maintaining an average 17-year partnership as of March 2024. Sagility serves five of the ten largest U.S. payers and added 20 new clients in 2023 and 2024. The company employs 35,044 staff, 60.52% of whom are women, including 1,687 certified employees across roles like medical coding, nursing, and healthcare specialties.

Peer Details

Sagility India Limited operates in a unique business segment with no directly comparable listed companies in India.

How to Check the Allotment Status of the Sagility India IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Sagility India IPO online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Sagility India IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Sagility India IPO

• Registered office: No. 23 & 24, AMR Tech Park, Building 2A, First Floor, Hongasandara Village, Off Hosur Road, Bommanahalli, Bengaluru 560 068, Karnataka, India
• Phone: +91- 80-7125 1500
• E-mail: investorservice@sagilityhealth.com

IPO Financials

Know before investing

Strengths

1. Leader in U.S. healthcare market with 1.23% market share (2023).

2. Provides end-to-end, tech-enabled services to Payers and Providers.

3. High client retention, with 110.82% revenue retention rate (2024).

4. 35,858 employees across 31 locations with 60.68% women workforce.

5. Strong tech portfolio, utilizing AI, ML, and RPA tools.

6. Supports five of the top 10 U.S. healthcare Payers (2024).

Risks

1. Intense competition may affect Sagility's business and profitability.

2. Sole U.S. healthcare focus exposes Sagility to industry risks.

3. Equity shares issued at ₹28.30 below potential offer price.

4. High reliance on goodwill, 54.67% of total assets (2024).

5. Sagility's credit rating downgrade may impact future capital access.

6. Attrition rate at 27.34% raises recruitment and retention costs.