The IPO will consist entirely of an offer-for-sale of 70.22 crore shares by the promoter, Sagility B.V., with no fresh issue component. All proceeds, excluding expenses, will go to the selling shareholder, and Sagility India will not receive funds from the issue.
The original IPO size was reduced from 98.44 crore shares as initially proposed in the preliminary filings. Sagility B.V., an affiliate of EQT Private Capital Asia, is the sole promoter of the Bengaluru-based company and will reduce its shareholding by 15%, retaining 85% after the IPO.
The anchor book opens on November 4, and the public offer closes on November 7.
Valued at Rs 14,044 crore at the upper price band, Sagility India provides technology-driven solutions to U.S. healthcare payers and providers, including health insurance companies, hospitals, and medical device companies.
A total of 19 lakh shares have been reserved for Sagility employees at a Rs 2 discount on the final price. Additionally, 75% of the remaining shares are earmarked for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.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 reported a 47.5% decline in profit to Rs 22.3 crore for the quarter ending June 2024, primarily due to decreased operating margins and higher taxes. Revenue rose 9.6% to Rs 1,223.3 crore, but EBITDA fell by 26.4% to Rs 193.9 crore, with margins shrinking 777 basis points to 15.85%.
In FY24, Sagility’s net profit surged 59% to Rs 228.3 crore despite a dip in operating margin, bolstered by reduced finance costs and increased other income. Revenue grew 12.7% to Rs 4,753.6 crore, while EBITDA rose by 5.9% to Rs 1,088 crore, though margins declined by 150 basis points to 22.9%.
Allotment of IPO shares will be finalized by November 8, credited to investor accounts by November 11, and trading on BSE and NSE will commence on November 12.
ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the lead managers for the IPO.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)