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Sagility India Ltd IPO
Status: Closed
Overview
IPO date
05 Nov 2024 to 07 Nov 2024
Face value
₹ 0 per share
Price
₹ 28 to ₹30 per share
Issue Size
702,199,262 shares
(aggregating up to ₹ 2106.6 Cr)
(aggregating up to ₹ 2106.6 Cr)
Allotment Date
08 Nov 2024
Listing at
NSE
Issue type
Book Building
Sector
Miscellaneous
Objectives of Sagility India Ltd IPO
Initial public offering of 702,199,262 equity shares of face value of
Rs. 10 each ("Equity Shares") of Sagility India Limited (The "Company" or the "Issuer") for cash at a price of Rs. 30^ per equity share including a share premium of Rs. 20 per equity share (the "Offer Price") aggregating to Rs. 2106.40* crores (the "Offer"). The offer comprises of an offer for sale of 702,199,262 equity shares of face value of Rs. 10 each (the "Offered Shares") aggregating to Rs. 2106.40* crores (the "Offer for Sale" or the "Offer"), by sagility B.V. the offer will constitute 15.00 % of the post-offer paid-up equity share capital of the company.
The offer includes a reservation of 1,900,000 equity shares of face value of Rs. 10 each, aggregating to Rs. 5.32 crores (constituting 0.27% of the post-offer paid-up equity share capital), for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as "Net Offer". The offer and net offer shall constitute 15.00% and 14.96%, of the post-offer paid-up equity share capital of the company, respectively.
^Subject to finalisation of basis of allotment
*A discount of Rs. 2 per equity share was offered to eligible employees bidding in the employees reservation portion.
Sagility India Ltd IPO Strategy
- Strengthen its relationships with existing clients, expand its offerings and increase its share of their wallets.
- Establish new client relationships across categories.
- Enhance its portfolio of technology tools and platforms.
- Pursue strategic acquisitions and collaborations.
About Sagility India Ltd
Sagility India Limited was originally incorporated as Berkmeer India Private Limited' as a Private Limited Company dated July 28, 2021, issued by the Registrar of Companies, Karnataka. The name of the Company subsequently was changed to Sagility India Private Limited' and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Karnataka at Bengaluru on September 13, 2022. Again, the status of Company was converted to a Public Limited Company and the name was changed to Sagility India Limited', issued by the RoC, through Fresh Certificate of Incorporation on June 20, 2024.
The Company is technology-enabled, pure-play healthcare focused solutions and services provider to Payers such as U.S. health insurance companies, which finance and reimburse the cost of health services, and Providers, primarily hospitals, physicians, and diagnostic and medical devices companies. The Company serve the core business operations of both Payer and Provider clients.
Their services to Payers encompass the entire spectrum of their operations, including core benefits administration functions and clinical services. To Providers, the Company provide revenue cycle management services which help them manage their billings and expenses and claim the cost of treatment from Payers. Additionally, it also provide some of the services to Payers to pharmacy benefit managers (PBMs) that manage prescription drugs for Members i.e., insured persons under health insurance plans.
The Company commenced providing services to Payer clients in 2000 and gradually increased the scope of services provided to Payers and Providers, and the number of its clients, through organic and inorganic growth.
The Company acquired the Indian undertaking of Hinduja Global Solutions Limited conducting the business of providing healthcare services in January, 2022. SIPL was a standalone entity and did not have any branches / subsidiaries until 25 March 2024 and so, the Company further acquired 100% shareholdings of Sagility (US) Holdings Inc and Sagility Philippines B.V., making them the subsidiaries of the Company in March, 2024.
The Company is proposing the Initial Public Offer of issuing 984,460,377 Equity Shares through Offer for Sale,.
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T&C*
Strengths vs Risks of Sagility India Ltd
Know the pros & cons
Strengths
Leadership position in the large and resilient U.S. Payer and Provider solutions market.- Domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers.
- Suite of scalable, technology-enabled services and solutions, supported by proprietary tools and platforms.
- Deep, long-term, expanding client relationships across healthcare Payers and Providers.
- Multi-shore, scalable and flexible delivery model with certified data protection and service standards.
- Experienced management and board, motivated employee base, marquee sponsor support and a sustainability focused culture.
Risks
- The healthcare services industry is highly competitive and if the company is unable to compete effectively, it may adversely affect its business, financial condition and results of operations.
- The company's business is solely focused on the U.S. healthcare industry and may be adversely affected by factors affecting the U.S. healthcare industry, including a decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.
- The company has, in the 12 months preceding the date of this Red Herring Prospectus, issued Equity Shares at a price which may be significantly lower than the Offer Price.
- Goodwill and other intangible assets are its largest assets. Any impairment to the company goodwill or other intangible assets may adversely affect its reputation and financial condition.
- One of its Independent Directors has received summons in relation to an ongoing investigation by SEBI of Linde India Limited and the matter is currently pending.
- Pursuant to an external financing facility availed by one of its Promoters, Sagility B.V., shares of Sagility B.V. held by the company other Promoter, Sagility Holdings B.V. are pledged. In case of an event of default and consequent invocation of security, there may be a change in control, which may adversely impact its business. Further, the terms of such facility also impose certain conditions on disposal of assets of Sagility B.V., including Equity Shares of the Company, which may impact the Offer.
- Anti-outsourcing legislation could adversely affect its business, financial condition and results of operations and impair the company ability to service its customers.
- A downgrade in its credit rating could adversely affect the company ability to raise capital in the future.
- Any failures to protect its proprietary technologies or information or the company intellectual property rights may have an adverse effect on its business, financial condition, and results of operations.
- Its ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws as well as laws of the relevant international jurisdictions, which could adversely affect its business prospects and international growth strategy.
- The company's business could be adversely affected if its cannot keep pace with technological changes, sufficiently invest and successfully yield the intended results from its investments in technology, in case of any errors or system disruptions in its technology tools and platforms, or if the company services are rendered obsolete by technological developments.
- If the company is unable to manage its employee expenses and resource utilization or fails to manage attrition and attract and retain skilled professionals, it may adversely affect its business, financial condition and results of operations. Further, due to a widespread employee base, the company is subject to the risk of employee claims and complaints.
- If the company fails to deliver services in accordance with contractual requirements, its could be subject to significant costs or liability and its business, reputation and results of operations could be adversely affected.
- If the company agreements with clients are terminated, its business, reputation and results of operations could be adversely affected.
- The Company does not have any comparable listed peers and, therefore, investors must relies on their own examination of the Company.
- As a significant portion of its business is attributable to certain large client groups in the U.S., its business and profitability is dependent on the company continuing relationships with such key clients.
- There are outstanding legal proceedings involving the Company, Subsidiaries and Directors. Any adverse decision in such proceedings may adversely affect its business, financial condition, and results of operations.
- If the company is not able to generate new service engagements, or if its business volumes fluctuate, it may adversely affect the company ability to grow its business and revenues.
- If the company fails to accurately price its statements of work or overrun the company cost estimates, its business, financial condition and results of operations may be adversely affected.
- The auditor's report on its financial statements for the Financial Year 2024 contains certain qualifications.
- If the company is unable to realize the anticipated benefits of acquisitions or experience delays or other problems in implementing its strategy of expanding through acquisitions, the company growth, business, results of operations and prospects may be adversely affected.
- The company is subject to regulatory requirements in the performance of services and if the company fails to comply with such requirements, its reputation, business, financial condition, results of operations and cash flows may be adversely affected.
- If its information security measures are compromised, damaged or interrupted by cyber incidents, breaches, or other security problems, its business, reputation and financial condition could be adversely affected.
- The company is subject to data protection and other laws that restrict the collection, use and disclosure of health information and other sensitive or private information. Any failures to comply with such laws could result in liabilities and damage to its reputation.
- The Equity Shares held by the nominees of its Promoters were not dematerialized at the time of filing of the Draft Red Herring Prospectus.
- The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business, financial condition, cash flows and results of operations.
- Restructuring of its clients' business and operations could result in changes to the company scope of work or a reduction in the number engagements, which may adversely affect its business, financial condition and results of operations.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.
- Its past growth rates may not be indicative of the company future growth. If the company is unable to manage its growth and execute its strategies effectively, the company's business, results of operations, cash flows and prospects may be adversely affected.
- The company reported a restated loss for the period from July 28, 2021 until March 31, 2022 and may incur additional losses in the future.
- Its business is subject to seasonality.
- The company sales and marketing efforts may not result in new business, and its revenues may not justify expenses incurred towards sales efforts.
- Its relationships with existing or potential clients who are in competition with each other may adversely impact the degree to which other clients or potential clients avail of its services, which may adversely affect the company.
- Its international operations expose it to complex management, legal, tax and economic risks, and exchange rate fluctuations, which could adversely affect its business, financial condition and results of operations.
- Upon completion of the Offer the company Promoter will continue to retain control over it.
- Its ability to operate the company's business, maintain its competitive position and implement its business strategy is dependent to a significant extent on the company Key Managerial Personnel and Senior Management.
- Its insurance coverage may be inadequate, which could have an adverse effect on its financial condition and results of operations.
- The company has outstanding statutory dues. Any delays in payment of statutory dues may adversely affect its reputation and financial condition.
- The company inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, financial condition, results of operations and cash flows.
- If the company is unable to ensure that its tools and platforms interoperate with, or if the company is unable to leverage software applications that are developed by third parties, its may become less competitive and the company's business and operations may be harmed.
- The company has entered into, and will continue to enter into, related-party transactions which may potentially involve conflicts of interest.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its businesses and reputation could be adversely affected.
- The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.
- Certain sections of this Red Herring Prospectus contain information from the Everest Report which has been commissioned by it and any reliance on such information for making an investment decision in this Offer is subject to inherent risks.
- Certain Non-GAAP financial measures and other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.
How to check the allotment status of Sagility India Ltd IPO?
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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
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The IPO opens on 05 Nov 2024 & closes on 07 Nov 2024.
Sagility India Limited was originally incorporated as Berkmeer India Private Limited' as a Private Limited Company dated July 28, 2021, issued by the Registrar of Companies, Karnataka. The name of the Company subsequently was changed to Sagility India Private Limited' and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Karnataka at Bengaluru on September 13, 2022. Again, the status of Company was converted to a Public Limited Company and the name was changed to Sagility India Limited', issued by the RoC, through Fresh Certificate of Incorporation on June 20, 2024.
The Company is technology-enabled, pure-play healthcare focused solutions and services provider to Payers such as U.S. health insurance companies, which finance and reimburse the cost of health services, and Providers, primarily hospitals, physicians, and diagnostic and medical devices companies. The Company serve the core business operations of both Payer and Provider clients.
Their services to Payers encompass the entire spectrum of their operations, including core benefits administration functions and clinical services. To Providers, the Company provide revenue cycle management services which help them manage their billings and expenses and claim the cost of treatment from Payers. Additionally, it also provide some of the services to Payers to pharmacy benefit managers (PBMs) that manage prescription drugs for Members i.e., insured persons under health insurance plans.
The Company commenced providing services to Payer clients in 2000 and gradually increased the scope of services provided to Payers and Providers, and the number of its clients, through organic and inorganic growth.
The Company acquired the Indian undertaking of Hinduja Global Solutions Limited conducting the business of providing healthcare services in January, 2022. SIPL was a standalone entity and did not have any branches / subsidiaries until 25 March 2024 and so, the Company further acquired 100% shareholdings of Sagility (US) Holdings Inc and Sagility Philippines B.V., making them the subsidiaries of the Company in March, 2024.
The Company is proposing the Initial Public Offer of issuing 984,460,377 Equity Shares through Offer for Sale,.
Sagility India Ltd IPO will close on 07 Nov 2024.
- Leadership position in the large and resilient U.S. Payer and Provider solutions market.
- Domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers.
- Suite of scalable, technology-enabled services and solutions, supported by proprietary tools and platforms.
- Deep, long-term, expanding client relationships across healthcare Payers and Providers.
- Multi-shore, scalable and flexible delivery model with certified data protection and service standards.
- Experienced management and board, motivated employee base, marquee sponsor support and a sustainability focused culture.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Sagility B.V. | 4681328413 | 100 | 3979129151 | 84.99 |
| 2 | Sagility Holdings B.V. | --- | --- | --- | --- |
- The healthcare services industry is highly competitive and if the company is unable to compete effectively, it may adversely affect its business, financial condition and results of operations.
- The company's business is solely focused on the U.S. healthcare industry and may be adversely affected by factors affecting the U.S. healthcare industry, including a decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.
- The company has, in the 12 months preceding the date of this Red Herring Prospectus, issued Equity Shares at a price which may be significantly lower than the Offer Price.
- Goodwill and other intangible assets are its largest assets. Any impairment to the company goodwill or other intangible assets may adversely affect its reputation and financial condition.
- One of its Independent Directors has received summons in relation to an ongoing investigation by SEBI of Linde India Limited and the matter is currently pending.
- Pursuant to an external financing facility availed by one of its Promoters, Sagility B.V., shares of Sagility B.V. held by the company other Promoter, Sagility Holdings B.V. are pledged. In case of an event of default and consequent invocation of security, there may be a change in control, which may adversely impact its business. Further, the terms of such facility also impose certain conditions on disposal of assets of Sagility B.V., including Equity Shares of the Company, which may impact the Offer.
- Anti-outsourcing legislation could adversely affect its business, financial condition and results of operations and impair the company ability to service its customers.
- A downgrade in its credit rating could adversely affect the company ability to raise capital in the future.
- Any failures to protect its proprietary technologies or information or the company intellectual property rights may have an adverse effect on its business, financial condition, and results of operations.
- Its ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws as well as laws of the relevant international jurisdictions, which could adversely affect its business prospects and international growth strategy.
- The company's business could be adversely affected if its cannot keep pace with technological changes, sufficiently invest and successfully yield the intended results from its investments in technology, in case of any errors or system disruptions in its technology tools and platforms, or if the company services are rendered obsolete by technological developments.
- If the company is unable to manage its employee expenses and resource utilization or fails to manage attrition and attract and retain skilled professionals, it may adversely affect its business, financial condition and results of operations. Further, due to a widespread employee base, the company is subject to the risk of employee claims and complaints.
- If the company fails to deliver services in accordance with contractual requirements, its could be subject to significant costs or liability and its business, reputation and results of operations could be adversely affected.
- If the company agreements with clients are terminated, its business, reputation and results of operations could be adversely affected.
- The Company does not have any comparable listed peers and, therefore, investors must relies on their own examination of the Company.
- As a significant portion of its business is attributable to certain large client groups in the U.S., its business and profitability is dependent on the company continuing relationships with such key clients.
- There are outstanding legal proceedings involving the Company, Subsidiaries and Directors. Any adverse decision in such proceedings may adversely affect its business, financial condition, and results of operations.
- If the company is not able to generate new service engagements, or if its business volumes fluctuate, it may adversely affect the company ability to grow its business and revenues.
- If the company fails to accurately price its statements of work or overrun the company cost estimates, its business, financial condition and results of operations may be adversely affected.
- The auditor's report on its financial statements for the Financial Year 2024 contains certain qualifications.
- If the company is unable to realize the anticipated benefits of acquisitions or experience delays or other problems in implementing its strategy of expanding through acquisitions, the company growth, business, results of operations and prospects may be adversely affected.
- The company is subject to regulatory requirements in the performance of services and if the company fails to comply with such requirements, its reputation, business, financial condition, results of operations and cash flows may be adversely affected.
- If its information security measures are compromised, damaged or interrupted by cyber incidents, breaches, or other security problems, its business, reputation and financial condition could be adversely affected.
- The company is subject to data protection and other laws that restrict the collection, use and disclosure of health information and other sensitive or private information. Any failures to comply with such laws could result in liabilities and damage to its reputation.
- The Equity Shares held by the nominees of its Promoters were not dematerialized at the time of filing of the Draft Red Herring Prospectus.
- The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business, financial condition, cash flows and results of operations.
- Restructuring of its clients' business and operations could result in changes to the company scope of work or a reduction in the number engagements, which may adversely affect its business, financial condition and results of operations.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.
- Its past growth rates may not be indicative of the company future growth. If the company is unable to manage its growth and execute its strategies effectively, the company's business, results of operations, cash flows and prospects may be adversely affected.
- The company reported a restated loss for the period from July 28, 2021 until March 31, 2022 and may incur additional losses in the future.
- Its business is subject to seasonality.
- The company sales and marketing efforts may not result in new business, and its revenues may not justify expenses incurred towards sales efforts.
- Its relationships with existing or potential clients who are in competition with each other may adversely impact the degree to which other clients or potential clients avail of its services, which may adversely affect the company.
- Its international operations expose it to complex management, legal, tax and economic risks, and exchange rate fluctuations, which could adversely affect its business, financial condition and results of operations.
- Upon completion of the Offer the company Promoter will continue to retain control over it.
- Its ability to operate the company's business, maintain its competitive position and implement its business strategy is dependent to a significant extent on the company Key Managerial Personnel and Senior Management.
- Its insurance coverage may be inadequate, which could have an adverse effect on its financial condition and results of operations.
- The company has outstanding statutory dues. Any delays in payment of statutory dues may adversely affect its reputation and financial condition.
- The company inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, financial condition, results of operations and cash flows.
- If the company is unable to ensure that its tools and platforms interoperate with, or if the company is unable to leverage software applications that are developed by third parties, its may become less competitive and the company's business and operations may be harmed.
- The company has entered into, and will continue to enter into, related-party transactions which may potentially involve conflicts of interest.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its businesses and reputation could be adversely affected.
- The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.
- Certain sections of this Red Herring Prospectus contain information from the Everest Report which has been commissioned by it and any reliance on such information for making an investment decision in this Offer is subject to inherent risks.
- Certain Non-GAAP financial measures and other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.
The Issue type of Sagility India Ltd is Book Building.
The minimum application for shares of Sagility India Ltd is 500.
The total shares issue of Sagility India Ltd is 702199262.
Initial public offering of 702,199,262 equity shares of face value of
Rs. 10 each ("Equity Shares") of Sagility India Limited (The "Company" or the "Issuer") for cash at a price of Rs. 30^ per equity share including a share premium of Rs. 20 per equity share (the "Offer Price") aggregating to Rs. 2106.40* crores (the "Offer"). The offer comprises of an offer for sale of 702,199,262 equity shares of face value of Rs. 10 each (the "Offered Shares") aggregating to Rs. 2106.40* crores (the "Offer for Sale" or the "Offer"), by sagility B.V. the offer will constitute 15.00 % of the post-offer paid-up equity share capital of the company.
The offer includes a reservation of 1,900,000 equity shares of face value of Rs. 10 each, aggregating to Rs. 5.32 crores (constituting 0.27% of the post-offer paid-up equity share capital), for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as "Net Offer". The offer and net offer shall constitute 15.00% and 14.96%, of the post-offer paid-up equity share capital of the company, respectively.
^Subject to finalisation of basis of allotment
*A discount of Rs. 2 per equity share was offered to eligible employees bidding in the employees reservation portion.