Sagility India Ltd. is set to open its initial public offering (IPO) on November 5, 2024, aiming to raise ₹2,107 crore through a full offer-for-sale structure. The price band is set between ₹28 and ₹30 per share, with a minimum investment requirement of ₹15,000 for 500 shares.

Sagility India provides technology-enabled business solutions for the US healthcare sector, catering to health insurers and medical providers. Its offerings include claims management, premium billing, and care management for payers, while providers benefit from revenue cycle services like coding and accounts receivable management.

The IPO comprises 702,199,262 equity shares, with no new capital to be raised directly for the company. Instead, it aims to unlock value for existing shareholders. The offer has been structured to allocate shares primarily to institutional investors (75%), high-net-worth individuals (15%), and retail investors (10%). Employees will receive 1,900,000 shares at a ₹2 discount per share.

Financially, Sagility has demonstrated impressive growth, with total income rising from ₹944.39 crore in FY22 to ₹4,781.50 crore in FY24. The company also saw its net profit improve from a loss in FY22 to a profit of ₹228.27 crore in FY24. In Q1 FY25, Sagility recorded an income of ₹1,247.76 crore and a net profit of ₹22.29 crore.

Notable stake sellers include 360 ONE, Avendus Future Leaders Fund II, and Adani Properties, with investments worth ₹150 crore, ₹126 crore, and ₹20 crore, respectively. Other investors include Elpro International and PAM Family Trust, among others.

Sagility’s strategic positioning in healthcare technology places it well in the US market, though investors should consider risks like competition and its reliance on goodwill, which accounts for 54.67% of total assets. The IPO opens on November 5, offering an attractive opportunity for retail investors to participate in the US healthcare sector.

Source: Sagility India IPO Analysis: Key Details for Investors