Sagility India
Book Building issueMainboardBSE₹2,106 Cr issue
+3.53%
Listing gain over issue price
Issue size
₹2,106 Cr
1 lot at cut-off
₹15,000
Lot size
500shares
Open
05 Nov 2024
Close
07 Nov 2024
Allotment
08 Nov 2024
Listing
12 Nov 2024
Listing performance
Issue price
₹30
Listed at
₹31.06
Listing-day close
₹29.36
Latest price
₹44.18
Close on 23 Oct 2026
Listing gain
+3.53%
Return since issue
+47.27%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Nov 2024 – 07 Nov 2024
- Listing date
- 12 Nov 2024
- Face value
- ₹1 per share
- Issue price
- ₹30 per share
- Lot size
- 500 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹2,106 Cr
- Market cap at offer price
- ₹14,044 Cr
- Promoter holding
- 97.39% → 82.39% pre-issue → post-issue
- ISIN
- INE0W2G01015
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- No.23 & 24, AMR Tech Park, Building 2A, First Floor, Hongasandara Village, Off Hosur Road, Bommanahalli, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 31,51,34,668 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 500 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 500 | ₹15,000 |
| Retail (max) | 13 | 6,500 | ₹1,95,000 |
| S-HNI (min) | 14 | 7,000 | ₹2,10,000 |
| S-HNI (max) | 66 | 33,000 | ₹9,90,000 |
| B-HNI (min) | 67 | 33,500 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
31,51,34,668
Anchor portion
₹945 Cr
at ₹30 per share
Valuation and performance
Valuation at offer price
₹30 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.49 | 0.49 |
| P/E (×) | 61.22 | 61.22 |
| Price to book (×) | 2.00 | — |
| Market cap | — | ₹14,044 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 0.29%
- Debt / equity
- 0.15
- PAT margin
- 11.83%
- NAV per share
- ₹16.25
- Price to book
- 2.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sagility India
Sagility India Limited was incorporated on July 28, 2021 and acquired the healthcare services business of its Predecessor Company on January 6, 2022. The Company provides technology-enabled business solutions and services to clients in the U.S. healthcare industry, serving both Payers (U.S. health insurance companies that finance and reimburse healthcare costs) and Providers (primarily hospitals, physicians, and diagnostic/medical device companies). Services to Payers include core benefits administration (claims management, enrollment, benefits plan building, premium billing) and clinical functions (utilization management, care management, population health management). Services to Providers include revenue cycle management. The Company operates through a global workforce spanning India, the Philippines, Colombia, Jamaica, and the U.S., delivering healthcare operations outsourcing services. The Company grew revenues from ₹9,234.07 million (July 28, 2021 to March 31, 2022) to ₹47,535.57 million (year ended March 31, 2024), with restated profit after tax of ₹2,282.66 million for FY2024.
Company Analysis
from RHPSagility India Limited is a technology-enabled business process outsourcing services provider specializing in healthcare operations for U.S. healthcare payers and providers.
Sagility India Limited was incorporated on July 28, 2021 and acquired the healthcare services business of its Predecessor Company on January 6, 2022. The Company provides technology-enabled business solutions and services to clients in the U.S. healthcare industry, serving both Payers (U.S. health insurance companies that finance and reimburse healthcare costs) and Providers (primarily hospitals, physicians, and diagnostic/medical device companies). Services to Payers include core benefits administration (claims management, enrollment, benefits plan building, premium billing) and clinical functions (utilization management, care management, population health management). Services to Providers include revenue cycle management. The Company operates through a global workforce spanning India, the Philippines, Colombia, Jamaica, and the U.S., delivering healthcare operations outsourcing services. The Company grew revenues from ₹9,234.07 million (July 28, 2021 to March 31, 2022) to ₹47,535.57 million (year ended March 31, 2024), with restated profit after tax of ₹2,282.66 million for FY2024.
Healthcare Services and Business Process OutsourcingHealthcare Information TechnologyHealthcare Operations Outsourcing
Objects of the Issue
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.25
- Carry out the Offer for Sale by the Promoter Selling Shareholder p.25
- Our Company will not receive any proceeds from the Offer for Sale p.79
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges and carry out the Offer for Sale p.111
- Offer for Sale by Promoter Selling Shareholder ₹21,062.18 million p.434
Issue Structure
- Total Issue
- 702,199,262 Equity Shares of face value of ₹10 each aggregating to ₹21,062.18 million
- Fresh Issue
- Not Applicable
- Offer for Sale
- 702,199,262 Equity Shares of face value of ₹10 each aggregating to ₹21,062.18 million by Sagility B.V.
- Price Band
- ₹28 to ₹30 per Equity Share (Floor Price ₹28, Cap Price ₹30)
- Lot Size
- 500 Equity Shares and in multiples of 500 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The Company earns revenue by providing technology-enabled business process outsourcing services to U.S. healthcare payers and providers. Revenue sources include: (1) core benefits administration services to payers such as claims management, enrollment, benefits plan building, and premium billing; (2) clinical services to payers such as utilization management, care management, and population health management; (3) revenue cycle management services to providers. The Company operates on a service delivery model with a distributed workforce and leverages proprietary technology tools and platforms to deliver these services.
Business Segments
Provides core benefits administration functions such as claims management, enrollment, benefits plan building, and premium billing, as well as clinical functions such as utilization management, care management, and population health management to U.S. health insurance companies.
Provides revenue cycle management functions to healthcare providers including hospitals, physicians, and diagnostic and medical device companies.
Services provided to health insurance payers including claims processing, payment processing, and healthcare administration
Services provided to healthcare providers for claims and payment processing
Claims management, payment integrity, clinical management including chronic and complex case management and utilization management, provider network operations and credentialing, member engagement services, enrollment, benefits plan configuration and premium billing
End-to-end revenue cycle management including patient access, financial clearance, insurance verification, medical coding, billing, accounts receivable follow-up, denials management, cash posting, credit balance resolution, and patient engagement services
Process of receiving, processing, adjudicating, and paying or denying claims submitted by Providers or Members. Services include intake/indexing/imaging, adjudication, post-adjudication, grievances and appeals handling.
Services help Payers contain costs by reducing overpayment for claims. Uses proprietary Contract Central technology to re-price claims and identify overpayments on pre-pay or post-pay basis.
Services aimed at delivering timely and quality clinical care for Members. Covers chronic and complex case management, utilization management, and population health management with multi-disciplinary teams of clinicians.
Range of revenue cycle management services for Provider clients including hospitals, labs, and other providers. Services include patient engagement, claims and coding, revenue management, denials resolution, and DME/lab specialty services.
Provides healthcare BPM services to insurance companies and government healthcare programs
Provides healthcare BPM services to healthcare providers
Services to U.S. health insurance companies including claims management (adjudication, grievance and appeals), payment integrity (pre-pay and post-pay analysis), clinical management (chronic care, utilization management, population health), and administrative services (provider credentialing, enrollment, benefits plan building, premium billing). Services support core benefits administration, clinical functions, and member/provider engagement.
End-to-end Revenue Cycle Management (RCM) services to healthcare Providers including scheduling, financial clearance, insurance verification, medical coding, billing, and accounts receivable follow-up. Services also include patient engagement and care quality services.
Health insurance payers receiving claims processing, member support and other BPO services
Healthcare providers receiving provider support and coordination of benefits services
SWOT Analysis
Strengths
- • Pure-play healthcare services provider with dual market focus (Payers and Providers)(p.25)
- • Significant goodwill and intangible assets reflecting domain expertise and client relationships(p.48)
- • Strong SLA compliance rate across clients(p.54)
- • High revenue concentration from top clients provides stable, large-scale business base(p.56)
- • Strong retention of largest clients with no termination in recent periods(p.56)
- • Positive operating cash flows and revenue growth trajectory(p.64)
- • Leadership position in large, resilient U.S. healthcare market with significant growth tailwinds(p.120)
- • 24 years of domain expertise in healthcare operations with end-to-end service offerings(p.120)
- • Proprietary technology platforms and tools enabling service delivery across value chain(p.120)
- • Deep, long-term client relationships with high retention; five largest clients average 17-year tenure(p.120)
- • Multi-shore, scalable delivery model with certified data protection across 31 locations in five countries(p.120)
- • Experienced management team with 80+ years combined industry experience and average 23-year tenure with business(p.113)
- • Recognized as Leader in Everest Healthcare Payer Operations PEAK Matrix Assessment 2023(p.165)
- • Serves 5 of top 10 US Payers and leading hospital networks with established relationships(p.173)
- • Strong revenue growth and high EBITDA margins demonstrating operational efficiency(p.176)
- • Proprietary technology platforms including BirchAI acquisition with GenAI capabilities(p.173)
- • Experienced management team with deep healthcare domain expertise(p.176)
- • Global multi-shore delivery network with 31 locations across 5 countries(p.184)
- • Large skilled workforce with high ratio of clinical professionals(p.176)
- • Support from marquee sponsor EQT with significant capital and global expertise(p.177)
- • Diversified business operations across payer and provider segments with established global presence(p.279)
- • Significant goodwill and intangible assets reflecting acquisition synergies and customer relationships(p.283)
- • Strong revenue growth trajectory with consistent quarter-on-quarter performance(p.298)
- • Concentrated customer base with revenue generation from established payer and provider customers(p.306)
- • Revenue growth driven by largest clients and client additions(p.387)
- • Strong annual revenue growth with new client additions(p.387)
- • Substantial increase in annual profit with 58.99% growth(p.390)
- • Strong operating cash generation capacity(p.391)
Weaknesses
- • High employee attrition and recruitment dependency(p.53)
- • Significant goodwill impairment risk(p.48)
- • Promoter pledging of shares and external financing constraints(p.50)
- • Employee complaints and management issues requiring investigation(p.54)
- • High employee benefits expenses relative to revenue(p.52)
- • Limited net worth relative to total assets(p.27)
- • Extreme customer concentration with top 3 clients representing 67% of revenues(p.56)
- • Top 10 clients account for 91% of revenues, creating major dependency risk(p.56)
- • Major customer announced exit from key business segment(p.56)
- • Significant litigation exposure against subsidiaries with material damages claimed(p.57)
- • Auditor qualifications on data backup and audit trails compliance(p.59)
- • Historical loss-making period and negative cash flows(p.64)
- • High employee voluntary attrition rate of 25-28% during recent periods(p.119)
- • Concentrated client base with top 5 clients representing 78-80% of revenue(p.119)
- • Low profitability margins with profit after tax margin of only 1.82-4.80%(p.118)
- • EBITDA margin declined from 24.77% in FY2023 to 23.48% in FY2024 and 17.85% in Q1 FY2025(p.118)
- • High customer concentration with top 3 clients representing 66.92% of quarterly revenue(p.186)
- • Significant dependence on top 10 clients representing 91.15% of quarterly revenue(p.186)
- • High voluntary employee attrition rate of 27.34% on annualized basis(p.176)
- • Negative net worth in subsidiary Sagility Technologies LLC as of June 30, 2024(p.215)
- • Payer revenue concentration at 89.11% of quarterly revenue(p.186)
- • Significant debt burden with substantial borrowings from related parties(p.326)
- • Heavy dependence on three major customers representing majority of revenue(p.298)
- • Significant lease obligations and right-of-use assets indicating operational commitments(p.281)
- • High amortization expense from intangible assets acquired in business combinations(p.299)
- • Exposure to deferred tax liabilities on intangible assets and right-of-use assets(p.302)
- • High employee cost expansion outpacing revenue growth(p.387)
- • Significant reliance on five largest clients for revenue(p.387)
- • Substantial debt obligations to related parties(p.393)
- • Material litigation exposure in US operations(p.404)
Opportunities
- • Growing U.S. healthcare operations outsourcing market with rising spending(p.25)
- • Rising healthcare operations spend expected to expand addressable market(p.25)
- • Regulatory-driven outsourcing requirements and compliance needs(p.45)
- • Strategic expansion through acquisitions completed with two major subsidiary acquisitions(p.59)
- • International geographic footprint across multiple jurisdictions enables market diversification(p.66)
- • Multiple service delivery models (time-based, transaction-based, outcome-based) provide revenue diversification(p.58)
- • US healthcare operations outsourcing market growing at 8.7% CAGR with payer segment at 7.0% and provider at 12.5%(p.154)
- • Healthcare operations spend projected to grow from US$201.1B in 2023 to US$258.9B by 2028(p.169)
- • Rising aging population and chronic disease prevalence driving healthcare service demand(p.169)
- • Regulatory changes accelerating emphasis on member engagement and outsourcing demand(p.152)
- • Increasing adoption of generative AI in healthcare creating new service opportunities(p.157)
- • Continued staffing shortages driving demand for third-party support in healthcare(p.152)
- • Significant wallet share expansion with existing top 10 Payer clients(p.177)
- • New client acquisition across large national Payers, Blue plans, and mid-sized operators(p.178)
- • Expansion of Provider revenue cycle management to hospitals, health systems, and adjacent markets(p.178)
- • Growth in pharmacy benefit management services for new and existing clients(p.178)
- • AI and generative AI-driven automation to enhance service delivery and reduce client costs(p.178)
- • Strategic M&A to expand service portfolio and acquire technology capabilities(p.179)
- • Expansion through strategic acquisitions in healthcare BPM sector with demonstrated integration capability(p.329)
- • Growth in AI-powered customer support solutions and healthcare technology services(p.329)
- • Geographic expansion and service line diversification across multiple jurisdictions(p.279)
- • Revenue growth potential from increased healthcare BPM service demand(p.298)
- • Expansion of service offering and geographic footprint(p.387)
- • Growth through acquisition and integration(p.387)
- • Seasonality-driven revenue peaks during enrollment periods(p.395)
Threats
- • Intense competition from larger, better-resourced competitors(p.45)
- • Complete U.S. healthcare industry concentration risk(p.45)
- • Risk of decline in U.S. healthcare outsourcing trends and industry growth(p.45)
- • Anti-outsourcing legislation and political sentiment against offshore outsourcing(p.49)
- • Client termination rights without cause(p.54)
- • Risk of loss of large client relationships and revenue concentration(p.54)
- • Credit rating downgrade risk affecting capital-raising ability(p.50)
- • Intellectual property infringement and trademark registration challenges(p.50)
- • Economic recession impacting healthcare spending and client demand(p.45)
- • Customers may internalize operations or move to captive centers, reducing outsourcing volumes(p.57)
- • Automation may reduce service demand as clients achieve desired outcomes(p.57)
- • Complex U.S. regulatory environment with multiple licensing and compliance requirements(p.60)
- • Cyber security and data breach risks with potential for significant liability and reputational damage(p.61)
- • Business subject to seasonal fluctuations with demand concentrated in specific periods(p.65)
- • Exchange rate fluctuations threaten margins as revenues in USD but costs in local currencies(p.66)
- • Economic downturns could cause client payment delays, defaults, or reduced spending(p.63)
- • Potential decline in US healthcare industry growth due to recession or government spending cuts(p.163)
- • Healthcare talent shortage with projected shortage of 68,020 primary care physicians and 337,970 nurses by 2036(p.150)
- • Escalating healthcare data breaches and cybersecurity risks with 256% increase in large breaches over past five years(p.151)
- • Potential enterprise hesitancy to outsource due to data privacy concerns and compliance challenges(p.163)
- • Increasing friction between payers and providers impacting member experience and care access(p.151)
- • Technology disruption risk from advances in healthcare processes reducing need for outsourced services(p.163)
- • Potential new market entrants with disruptive business models and differentiated solutions(p.163)
- • Regulatory risks including HIPAA, HITECH, state-level healthcare regulations, and telecom compliance(p.175)
- • Intense competition from broad-based IT services firms and healthcare specialists(p.190)
- • Cybersecurity and data breach risks given handling of sensitive health information(p.188)
- • Foreign exchange and currency risk from multi-shore operations across five countries(p.184)
- • Dependence on continued client relationships and contract renewal with concentrated customer base(p.186)
- • High concentration risk from three customers representing substantial portion of revenue(p.321)
- • Foreign exchange volatility impacting financial performance and operational costs(p.323)
- • Regulatory and compliance risks across multiple geographic jurisdictions(p.327)
- • Interest rate and refinancing risk on substantial debt obligations(p.291)
- • Lease termination and modification risks affecting operational flexibility(p.281)
- • Exposure to regulatory requirements in multiple jurisdictions(p.410)
- • Outstanding material litigation in US courts affecting subsidiary(p.404)
- • Tax compliance risks across multiple jurisdictions(p.407)
- • Business subject to seasonal revenue fluctuations(p.395)
- • Industry-wide competitive intensity(p.394)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sagility B.V. | Promoter / Promoter Selling Shareholder | 97.39% | 82.39% |
| Sagility Holdings B.V. | Promoter | — | — |
| Sagility B.V. | Promoter | 97.39% | 82.39% |
| Sagility B.V. | Promoter Selling Shareholder | — | — |
| Sagility B.V. | Promoter | — | — |
| EQT | Sponsor/Investor | — | — |
| Sagility B.V. | Promoter | 97.39% | — |
| Sagility Holdings B.V. | Promoter | 97.39% | — |
| Sagility B.V. | Promoter | 99.99% | — |
| EQT AB | Ultimate holding company with effect from 18 October 2022 | — | — |
| Baring Private Equity Asia GP VIII Limited | Ultimate Beneficial Owner until 17 October 2022 | — | — |
| Sagility B.V. | Immediate holding company / Promoter | — | — |
| Sagility B.V. | Promoter Selling Shareholder | — | — |
| Sagility B.V. | Promoter Selling Shareholder | — | — |
Leadership
Ramesh Gopalan · Group Chief Executive Officer / Managing Director and Group Chief Executive Officer
Sarvabhouman Doraiswamy Srinivasan · Group Chief Financial Officer
SatishKumar Sakharayapattana Seetharamaiah · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Sagility India IPO FAQs
What is the lot size of Sagility India IPO?
The minimum lot size of Sagility India IPO is 500 shares. One lot costs ₹15,000 at the cut-off price.
When does Sagility India IPO open and close?
Sagility India IPO opened for subscription on 05 Nov 2024 and closed on 07 Nov 2024.
What is the listing date of Sagility India IPO?
Sagility India IPO listed on 12 Nov 2024.