Sagility India Limited IPO

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Sagility india limited is a technology-enabled business solutions provider focused exclusively on the U.S. healthcare industry, offering a comprehensive suite of services to Payers and Providers. Their client base includes U.S. health insurance companies (Payers) and entities like hospitals, physicians, and medical devices companies (Providers).

Services to Payers

Their offerings to Payers encompass core benefits administration functions and clinical services:
i. Core Benefits Administration: This includes claims management, enrollment, benefits plan building, premium billing, credentialing, and provider data management.
ii. Clinical Functions: We provide services like utilization management, care management, and population health management.

Services to Providers

For Providers, their focus is on revenue cycle management, covering key areas such as:
i. Financial clearance                ii. Medical coding                 iii. Billing                iv. Accounts receivable follow-up

Additional Services
They extend some of their Payer services to Pharmacy Benefit Managers (PBMs), who handle prescription drug management for insured members.

Global Delivery Model

Their services are delivered through a skilled talent pool across five global locations: India, the Philippines, the U.S., Jamaica, and Colombia. This international presence allows them to efficiently cater to their clients’ needs with high-quality service.

Objects of the Sagility India Limited IPO:

The objectives of the Offer are to: i. Achieve the benefits of listing the Equity Shares on the Stock Exchanges, and ii. Carry out the Offer for Sale of up to 702,199,262 Equity Shares of the face value of Rs. 10 each by the Promoter Selling Shareholder. Total number of share issue :- i. Offer for sale is 702,199,262 shares.
DRHP of Sagility India Limited IPO
RHP of Sagility India Limited IPO

Sagility India Limited IPO Details:

Open Date: Nov 05 2024
Close Date: Nov 07 2024
Total Shares: 702,199,262
Face Value: ₹ 10 Per Equity Share
Issue Size: 2,106.60 Cr.
Lot Size: 500 Shares
Issue Price: ₹ 28 - 30 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 12 2024

Promoters And Management:

Ramesh Gopalan, the Managing Director and Group CEO, holds a bachelor’s in mining machinery from ISM, Dhanbad, and a post-graduate diploma from IIM Ahmedabad. He joined them in January 2022, bringing over 31 years of experience in consulting and outsourcing, with prior roles at Deloitte Consulting, Accenture, Ramco Systems, Infosys BPM, and Gridstone Research. Hari Gopalakrishnan, a Non-Executive Non-Independent Director, holds a medical degree from the University of Kerala and a management diploma from IIM Ahmedabad. He joined the board on July 28, 2021, bringing over 16 years of experience, primarily with Baring Private Equity Asia (BPEA), where he is a partner and global co-head of services within the BPEA EQT team. He is also on EQT's Investment, Exits and Liquidity, and Mid Market Committees, focusing on investments in technology and healthcare sectors. Martin I. Cole is the Chairman and a Non-Executive Non-Independent Director of the Company. With a Bachelor’s degree from Dartmouth College and a Master’s in Public Affairs from the University of Texas at Austin, he joined the board on June 24, 2024. Bringing over 43 years of experience, he also serves as a director for NASDAQ-listed Western Digital and NYSE-listed Western Union. Previously, he was Chairman and interim CEO of Cloudera and led Accenture’s technology group as its Chief Executive.

Financials of Sagility India Limited IPO:

 
Particulars (in cr) FY24 Fy23
Revenue from operations 4753 4218
Other income 27 17
Total income 4781 4236
Employee benefits expense 2937 2494
Other expenses 727 696
Total expenses 3665 3191
EBITDA 1116 1044
OPM 23.48% 24.75%
Finance costs 185 214
D&A 689 644
Restated Profit/ (Loss) before tax 241 185
Current tax 111 124
Restated Profit/ (Loss) for the year / period 228 143

Recommendation on Sagility India Limited IPO:

Review and Recommendation of Sagility India by team IZ is 5/10.

Lead Manager of Sagility India Limited IPO:

  1. ICICI Securities Limited
  2. IIFL Securities Ltd
  3. J.P. Morgan India Private Limited
  4. Jefferies India Private Limited

Registrar of Sagility India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Sagility India Limited No. 23 & 24, AMR Tech Park, Building 2A, First Floor, Hongasandara Village, Off Hosur Road, Bommanahalli, Bengaluru - 560 068 Phone: +91- 80-7125 150 Email: investorservice@sagilityhealth.com Website: http://www.sagilityhealth.com/

Discussion on Sagility India Limited IPO:

2 Comments

    The upcoming Segality IPO is structured as a pure offer for sale (OFS), with a valuation at a P/E ratio of 61x based on FY24 financials, and a market capitalization estimated at ₹14,000 crore.

    1. Financial Overview:

    Segality reported a top-line growth of 12% from FY23 to FY24, showcasing steady expansion. One of its key strengths lies in its robust cash flow generation, with cash from operations for both FY23 and FY24 amounting to approximately ₹1,700 crore, indicating a solid operational performance and financial health.

    2. Business Model:

    Segality specializes in providing technology-driven services primarily to insurance companies for efficient claim settlements. Additionally, it supports hospitals by assisting in the recovery of payments from insurance providers and offers various other tech-driven services tailored for the healthcare sector.

    3. Company Profile:

    As a pure tech company, Segality operates with a global focus, generating its entire revenue from the US market. The company maintains a significant presence with offices located across five strategic locations, underscoring its capacity to serve clients effectively and sustain growth in a competitive market.

    Reply

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