Sagility India IPO price, date, allotment, GMP, Lot details

Sagility India IPO-Complete Overview

Sagility India IPO a Mainboard IPO is a book-built issue of Rs.2,106.60 crore (70,21,99,262 Shares) by Sagility India Pvt ltd (formerly Berkmeer India Private Limited). Healthcare-focused solutions and services are offered by Payers (US health insurers that cover and reimburse the cost of healthcare services) and Providers (mostly hospitals, doctors, diagnostics, and medical technology companies).

Both payers and providers rely on the corporation to sustain their core business. Payers are provided with services that encompass all aspects of their operations, such as centralized claims management and clinical care. These include claims administration, clinical management, and payment integrity, among other services. 

By offering revenue cycle management services, the company assists providers in managing their billing and submitting treatment cost claims to payers. Besides, the company offers Pharmacy Benefit Managers ("PBMs") to Payers, who oversee prescription medication coverage for members (referred to as insureds) under health benefit plans.

The clientele of the company’s operations are all found in the USA. As of January 2024, the company provided its services to half of the largest payers in the US which are also ten in number. Also, the company gained 20 new customers in the financial years 2024 and 2023.

This new IPO is to be launched on November 05, and the initial public offering of this upcoming IPO will end on 07 November 2024.

 

Sagility India IPO Details

The Rs.2,106.60 crore Sagility IPO comprises wholly an offer for sale (OFS) of 70.22 crore Shares and it will be listed at BSE and NSE. 

Sagility India IPO Allotment date- 08 November 2024.

 

If You want to apply for the IPO,  Click Here to Open a Demat Account.

Company Financial

The company’s revenue climbed by 13% and PAT grew by 59% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Revenue Bifurcation 

(Values in millions)

 

Geography-wise Revenue Bifurcation 

(Values in millions)

 

 

IPO Objective

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Obtain the advantages of listing equity shares on stock exchanges.

• Execute the promoter selling shareholder's offer to sell up to 70,21,99,262 equity shares at a face value of Rs.10 apiece.

 

Peers of Sagility India Ltd.

No listed companies that cater to US Healthcare enterprises of the comparable size and nature.

 

Evaluation

The IPO price is between Rs.28 and Rs.30 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.0.53 from the last year, the resulting P/E ratio is 56.60x.

Considering the weighted EPS of Rs.0.37 for the last three years, the P/E ratio is 81.08x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is N.A.

 

IPO's Strengths 

• Position of leadership in the sizable and robust U.S. payer and provider solutions market

• Domain knowledge in healthcare operations, offering payers and providers end-to-end services.

• A collection of technology-enabled, scalable services and solutions backed by proprietary platforms and tools.

• Strong, enduring, growing client ties between healthcare providers and payers.

• Multi-shore, adaptable, and scalable delivery approach with approved service and data protection standards.

 

IPO’s Weaknesses 

• Its business, financial situation, and operational outcomes could be negatively impacted if the company is unable to effectively compete in the very competitive healthcare services sector.

• Business is only concerned with the healthcare sector in the United States and could be negatively impacted by events that affect that sector, such as a slowdown in the sector's growth, a decrease in outsourcing, and other trends.

• The company may incur substantial expenses if it is unable to provide services in compliance with the terms of the contract.

• Terminating its client agreements could harm its operations, reputation, and business.

 

Sagility India GMP

Its IPO GMP today is Rs.0 and Sagility India's IPO expected listing price is Rs.30 as of 02 November 2024.

Sagility India IPO Timetable (Tentative)

The IPO date is from 05 November to 07 November, with IPO allotment on 08 November, refund initiation on 08 November, and listing on 12 November 2024.

 

IPO Details 

The IPO with a face value of Rs.10/Share, Sagility India IPO size of 702,199,262 Shares will be listed at BSE and NSE.

IPO Sagility India Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (500 Shares) amounting to Rs.15000 and 13 Lots (6500 Shares) amounting to Rs.1,95,000 respectively, while for HNI investors, the minimum Lot is 14 (7000 Shares) amounting to Rs.2,10,000.

Sagility India IPO Reservation

Promoters and Management of Sagility India Ltd. 

• Sagility B.V.

• Sagility Holdings B.V.

 

 

Sagility India IPO Lead Managers

• ICICI Securities Ltd

• IIFL Securities Ltd.

• Jefferies India Private Limited.

• J.P. Morgan India Private Limited.

 

Dividend Policy

No dividends are paid by the company.

Conclusion

Sagility India’s public offering presents an opportunity to investors in a developed healthcare service provider primarily operating in the U.S. market. Sagility, owing to strong relations with the clients, and its payers and providers solutions, intends to gain from this IPO by seeking listing on major exchanges. Revenue and profit enhancement have been experienced by the business, however, potential investors should be wary of the risks associated with its US-centered operations.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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Company Financial