Sagility India IPO raises $112Mn from global investors
BENGALURU, INDIA — Bengaluru-based healthcare services provider Sagility India raised ₹945.4 crore (US$112 million) from 52 anchor investors on November 4, just before its initial public offerinG (IPO), which is scheduled for November 5.
The company has attracted significant interest from global institutional investors, including Nomura Funds, Government Pension Fund Global, and Goldman Sachs.
The ₹2,107 crore (US$250,000) IPO will run until November 7 and is entirely an offer-for-sale (OFS) of 70.22 crore shares by Sagility BV, its Netherlands-based promoter and affiliate of EQT Private Capital Asia.
Expanding presence and services
Sagility India provides technology-enabled business solutions to the U.S. healthcare industry, serving both payers (health insurance companies) and providers (hospitals, physicians, and medical device companies).
The company operates across five countries – India, the Philippines, the U.S., Jamaica, and Colombia – with a workforce of 35,858 employees as of June 2024. The company processes over 105 million claims and handles more than 75 million member and provider interactions annually.
In March 2024, Sagility India expanded its offerings by acquiring BirchAI, a company specializing in AI-driven customer support. This move is expected to bolster Sagility’s capabilities in cloud-based generative AI, further integrating large language models (LLMs) and speech-to-text solutions into its operations.
Financial performance and IPO details
Sagility India reported a 12.7% rise in revenue from operations in FY24, reaching ₹4,753.56 crore (US$ 565 million), up from ₹4,218.41 crore (US$ 501.4 million) the previous year. Additionally, the company saw a 50% increase in profit after tax, amounting to ₹228.27 crore (US$ 27.1 million). In the June quarter, Sagility recorded a revenue of ₹1,223.33 crore (US$ 145.4 million) and a profit after tax of ₹22.29 crore (US$ 2.6 million).
Despite its strong financial performance, the IPO funds will not go to Sagility India directly. Instead, proceeds from the offer-for-sale will be allocated to Sagility BV, its promoter, aiming to boost visibility and liquidity for shareholders. The company’s shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India serving as the lead managers.
