EQT Private Capital-backed Sagility India, the healthcare focussed services provider, will launch its Rs 2,107-crore initial share sale on November 5, with a price band at Rs 28-30 per share. This will be the second public issue hitting Dalal Street next week, after Swiggy.
Read More: Stock Market Updates: Sensex Falls 300 Pts, Nifty Below 24,400
The IPO comprises of entirely an offer-for-sale of 70.22 crore equity shares by promoter Sagility B V, with no fresh issue component. Hence, the entire IPO proceeds (excluding offer expenses) will be received by the selling shareholder and the company will not get any money from the issue.
The company has reduced its IPO size from 98.44 crore equity shares mentioned at the time of filing preliminary papers.
Sagility BV, an affiliate of EQT Private Capital Asia (the global investment organisation), is the only promoter and shareholder in the Bengaluru-based company. Its shareholding in the company will be reduced by 15 percent to 85 percent post issue.
Read More: Godavari Biorefineries Makes Disappointing Market Debut, Share Declines 12.5%
The anchor book portion of the public issue will be launched on November 4, while the offer will close at 5 pm on November 7.
Sagility India, which is valued at Rs 14,044 crore at the upper price band, provides technology-enabled core business solutions and services to payers and providers in the healthcare industry of United States.
Payers are the US health insurance companies which finance and reimburse the cost of health services, while providers are primarily hospitals, physicians, and diagnostic and medical devices companies.
The offer includes a reservation of 19 lakh equity shares for employees of the company. Employees will get these shares at a discount of Rs 2 per share to the final issue price.
Furthermore, the company has announced allocation of 75 percent of the net offer (total issue size less employee portion) to qualified institutional buyers, 15 percent shares for non-institutional investors and the last 10 percent share for retail investors.
Read More: Diwali stock market holiday: Are NSE, BSE shut on October 31? Here’s what exchange notification says
Investors can bid for a minimum of 500 equity shares and in multiples of 500 shares thereafter. The minimum investment by retail investors would be Rs 15,000 (for 500 shares) and the maximum at Rs 1.95 lakh (6,500 shares) as their investment can not exceed the limit of Rs 2 lakh.
Sagility India recorded a 47.5 percent on-year decline in its profit at Rs 22.3 crore for the three months period ended June 2024, with significant drop in operating margin and jump in tax cost. Revenue during the same period increased by 9.6 percent to Rs 1,223.3 crore, however, EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 26.4 percent year-on-year to Rs 193.9 crore and margin dropped 777 bps to 15.85 percent in Q1FY25.
Its consolidated profit in the year ended March 2024 surged 59 percent to Rs 228.3 crore compared to previous year despite weakness in operating margin, aided by lower finance cost, tax expenses and higher other income.
Revenue from operations increased by 12.7 percent to Rs 4,753.6 crore in the same period. On the operating front, it recorded 5.9 percent year-on-year growth in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,088 crore but margin declined 150 bps to 22.9 percent compared to previous year.
The Bengaluru-based company will finalise the basis of allotment of IPO shares by November 8, while the IPO shares will be received by successful investors in their demat accounts by November 11.
The trading in Sagility India shares will commence on the BSE and NSE, effective November 12.
ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are acting as the merchant bankers for the issue.
