Sagility India Files IPO for Promoter Stake Sale

3 Jul 2024 , 08:58 AM

Sagility India, a technology-enabled healthcare solutions and services provider, has filed a draft red herring prospectus (DRHP) with the capital markets regulator SEBI to raise funds through an initial public offering.

The public issue consists solely of an offer-for-sale (OFS) of 98,44,60,377 equity shares, with no new issue component.

Sagility BV, an affiliate of EQT Private Capital Asia (the global investment organisation), is the sole promoter and stakeholder in the Bengaluru-based firm, which is offering shares via OFS.

Sagility delivers healthcare-specific solutions and services to payers and providers. In reality, it facilitates the essential business processes of both payer and provider customers.

Payers include US health insurance companies, who finance and cover the cost of health care, whereas providers primarily include hospitals, physicians, and diagnostic and medical gadget manufacturers.

In general, the organisation provides payers with claims management, payment integrity, clinical management, and other services, while providers benefit from revenue cycle management services that assist providers in managing their billings and claiming treatment costs from payers.

In the fiscal year 2024, the payers division generated 90.3% of its revenue, with the providers sector accounting for the remaining 9.7%.

Consolidated net profit for the fiscal year ended March FY24 climbed substantially by 59% year on year to ₹228.3 Crore, despite a negative operating margin, boosted by decreased finance costs, tax charges, and greater other income.

During the same quarter, operating revenue rose by 12.7% to ₹4,753.6 Crore. On the operating front, it reported a 5.9% year-on-year increase in EBITDA (earnings before interest, tax, depreciation, and amortisation) at ₹1,088 Crore, but the margin fell 150 basis points to 22.9% from the previous year.

Sagility India, which provides non-voice business process management and back-office transaction processing services to customers in the healthcare and insurance industries, has no comparable listed equivalent in India.

ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India have been designated as merchant bankers for the offering.

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