Sagility India Limited IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Sagility India Limited (SIL) specializes in providing non-voice business process management and back-office transaction processing services, primarily catering to healthcare and insurance clients. Originally incorporated as Berkmeer India Private Limited in 2021, headquartered in Bengaluru, Karnataka. The company serves its subsidiaries exclusively, handling tasks such as claims processing, data management, and medical coding and billing. SIL transitioned to a public limited company in June 2024, expanding its reach across various healthcare markets globally. SIL's parent company is Sagility B.V., and the ultimate ownership lies with EQT AB, a Swedish private equity group.

IPO Details:

Objects of the Issue:

Since it is completely OFS issue, there won’t be any funds available for the company.

Strengths:

• Leadership position in a large and resilient market: It is a leading provider of technology-enabled business solutions to clients in the U.S. healthcare industry. This is a large and growing market with a strong demand for outsourcing services.
• Experienced management team: It has an experienced management team with a proven track record of success in the healthcare industry.
• Focus on innovation: The company is committed to innovation, investing in new technologies and solutions to meet the evolving needs of its clients
• Strong customer relationships: It has strong customer relationships with some of the leading healthcare organizations in the U.S. These relationships provide a stable source of revenue and growth.

Risks:

• Customer Concentration: Revenue from top 10 customers contributes 91.15% of the revenues.
• Dependence on the U.S. healthcare industry: IT is heavily dependent on the U.S. healthcare industry. Any changes in the regulatory environment or the overall economy could have a significant impact on the company's business.
• Competition: The healthcare outsourcing industry is highly competitive, with a number of large and well-established players. It faces competition from both domestic and international companies.
• Goodwill impairment: Sagility India Limited’s largest assets are goodwill and intangible assets, which are subject to impairment charges. Any impairment to these assets would have a negative impact on the company’s financial condition.

Financial Highlights:

 *Our Company was incorporated on July 28, 2021; however, we acquired the healthcare services business of our Predecessor Company on January 6, 2022, which is when our Company started commercial operations. Accordingly, all financial information for the Financial Year 2022 relates to the period from January 6, 2022 until March 31, 2022.

^#For the period beginning from July 28, 2021 to March 31, 2022

Conclusion:

Being a technology platform, this company derives the benefits of the network effect due to onboarding a large number of insurers as well as hospital chains establishing a moat for the organization.

The company is bringing its IPO at an earnings valuation of 61 times, considering the business growth in the previous periods this valuation seems to be higher. Further, based on the industry growth, business operations, and valuations the investors should Avoid this IPO.