Sagility India Secures Rs 945 Crore from Anchor Investors Before IPO Launch

Sagility India Ltd, a provider of technology-driven services in healthcare, announced it has raised over Rs 945 crore from anchor investors. This comes just before its initial public offering (IPO) opens for subscription. Notable anchor investors include Nomura Funds Ireland, Government Pension Fund Global, and Goldman Sachs Singapore Pte, as per a BSE circular.

The company has allocated 31.51 crore equity shares to 52 funds at Rs 30 each, totalling Rs 945.40 crore. Among these, eight domestic mutual funds received 11.84 crore shares through 26 schemes. The IPO, priced between Rs 28-30 per share, will be open from November 5 to November 7.

IPO Details and Objectives

Sagility's IPO is entirely an offer for sale (OFS) of 70.22 crore shares by its promoter Sagility BV, valued at Rs 2,106.60 crore at the top price band. As it is an OFS, the company will not receive any proceeds; all funds will go to the selling shareholders. The company aims to gain listing benefits on stock exchanges.

Listing the equity shares is expected to enhance Sagility's visibility and brand image while providing liquidity to shareholders and establishing a public market for its shares. The Bengaluru-based firm offers technology-enabled services to US health insurance companies and healthcare providers like hospitals and diagnostic firms.

Recent Acquisition and Financial Performance

In March 2024, Sagility acquired BirchAI, a healthcare tech firm specialising in cloud-based generative AI technology. This acquisition aims to improve member engagement and reduce operational costs through AI-powered solutions using speech-to-text and large language models integrated with Sagility's offerings.

As of March 31, 2024, Sagility employed 35,044 people, with women making up 60.52% of the workforce, an increase from 30,830 employees the previous year. The company's revenue from operations rose by 12.7% to Rs 4,753.56 crore in FY24 compared to Rs 4,218.41 crore in the prior year.

Profit after tax surged by 50% to Rs 228.27 crore for FY24 from Rs 143.57 crore in the previous year. For the June quarter, revenue was Rs 1,223.33 crore with a profit after tax of Rs 22.29 crore.

ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are managing the issue as book-running lead managers. Sagility's equity shares are set to be listed on both the BSE and NSE exchanges.