Sagility India Gets SEBI Nod To Raise Funds Via IPO

Sagility India Ltd, a healthcare-focused business process management (BPM) firm, has received approval from SEBI to raise funds through an initial public offering (IPO). The company, backed by EQT Private Capital Asia, submitted its draft papers in July 2024, and SEBI issued its observation letter on October 9, 2024. This approval allows Sagility India IPO to be launched within a year of receiving the observation letter

IPO Structure: Offer for Sale (OFS) Only

Sagility India IPO is structured solely as an Offer for Sale (OFS), with 98.44 crore equity shares being sold by the company’s promoter, Sagility BV, an affiliate of EQT Private Capital Asia. Notably, the IPO will not feature any fresh issue of shares, meaning that Sagility India will not receive any proceeds from the public offering. The entire fund generated will go to the selling shareholder, Sagility BV.

Business Overview

Headquartered in Bengaluru, Sagility India provides technology-driven BPM services, catering to both payers (U.S. health insurance companies that finance and reimburse healthcare costs) and providers (hospitals, physicians, diagnostic companies, and medical device firms). With a strong focus on healthcare, the company has grown significantly, reporting Rs.4,753.56 crore in revenue for FY24, a 12.7% increase from the previous year. The company’s profit after tax surged by 50%, reaching Rs.228.27 crore for FY24.

In March 2024, Sagility acquired BirchAI, a healthcare technology company specializing in generative AI solutions. This acquisition is expected to strengthen the company’s engagement solutions and lower clients’ operational costs.

Workforce Growth

As of March 31, 2024, Sagility India employed 35,044 people, with women making up 60.52% of its workforce. The company has shown a steady increase in employee count, up from 30,830 in the previous year.

Conclusion: With SEBI’s approval, Sagility India IPO seems positioned to benefit from this listing, which it expects will improve visibility, brand image, and liquidity for its shareholders. The company’s financials and acquisition of BirchAI are likely to attract investor interest as it prepares for its IPO.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.