Sagility India eyes Rs 2,107 cr via IPO; sets price band at Rs 28-30/ share

New Delhi: Sagility India Ltd, a technology-enabled services provider in the healthcare space, on Wednesday said it has fixed a price band of Rs 28-30 per share for its Rs 2,107 crore initial public offering (IPO).

The initial share-sale will open for public subscription on November 5 and conclude on November 7, the company announced.

The Bengaluru-based company's proposed IPO is entirely an offer for sale (OFS) of 70.22 crore shares, by promoter Sagility B V, worth Rs 2,106.60 crore at the upper end of the price band.

The offer includes a reservation for subscription by eligible employees.

Since it is an OFS, the company will not receive any proceeds from the public issue, and the entire fund will go to the selling shareholders.

The objective of the initial share-sale is to gain the advantages of listing the equity shares on stock exchanges, the company stated.

Additionally, the company anticipates that listing the equity shares will boost its visibility and brand image, provide liquidity to its shareholders, and establish a public market for the equity shares.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 500 equity shares and in multiples of 500 thereafter.

The company provides technology-driven services to both payers (US health insurance companies, which finance and reimburse the cost of health services), and providers (primarily hospitals, physicians, and diagnostic and medical devices companies).

In March 2024, Sagility acquired BirchAI, a healthcare technology firm specialising in cloud-based generative AI technology. This acquisition is expected to enhance member and provider engagement and reduce clients' operational costs through AI-powered customer support solutions using speech-to-text and large language models (LLMs) integrated with Sagility's engagement solutions.

As of March 31, 2024, Sagility had 35,044 employees, 60.52 per cent of them women, up from 30,830 a year ago.

Sagility India's revenue from operations during fiscal year 2024 increased 12.7 per cent to Rs 4,753.56 crore against Rs 4,218.41 crore a year ago. Profit after tax soared 50 per cent to Rs 228.27 crore from Rs 143.57 crore in the preceding year.

For the three months ended June 30, 2024, revenue from operations stood at Rs 1,223.33 crore and profit after tax at Rs 22.29 crore.

ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the book-running lead managers to the issue. The company's equity shares are proposed to be listed on the BSE and NSE.