Ahead of IPO, Sagility India collects Rs 945 cr from anchor investors

Sagility India Ltd, a technology-enabled services provider in the healthcare services space, on Monday said it has mobilised over Rs 945 crore from anchor investors, a day before its initial share-sale opening for public subscription.

Nomura Funds Ireland, Government Pension Fund Global, Florida Retirement System - Allspring Global Investments, LLC (EMSC), Amundi Funds New Silk Road, and Goldman Sachs (Singapore) Pte are among the top anchor investors, according to a circular uploaded on the BSE website.

Additionally, ICICI Prudential Mutual Fund (MF), HDFC MF, Motilal Oswal MF, Max Life Insurance Co Ltd, and ICICI Prudential Life Insurance Company have participated in the anchor round.

 

As per the circular, Sagility India has allotted 31.51 crore equity shares to 52 funds at Rs 30 apiece. This aggregates the transaction size to Rs 945.40 crore.

Of the total allocation of shares to the anchor investors, 11.84 crore were allocated to eight domestic mutual funds through 26 schemes.

The issue, with a price band of Rs 28-30 per share, will open for public subscription on November 5 and conclude on November 7.

The Bengaluru-based company's proposed IPO is entirely an offer for sale (OFS) of 70.22 crore shares, by promoter Sagility BV, worth Rs 2,106.60 crore at the upper end of the price band.

Since it is an OFS, the company will not receive any proceeds from the public issue, and the entire fund will go to the selling shareholders.

The objective of the initial share-sale is to gain the advantages of listing the equity shares on the stock exchanges, the company stated.

Additionally, the company anticipates that listing the equity shares will boost its visibility and brand image, provide liquidity to its shareholders, and establish a public market for the equity shares.

The company provides technology-driven services to both payers (US health insurance companies, which finance and reimburse the cost of health services), and providers (primarily hospitals, physicians, and diagnostic and medical devices companies).

In March 2024, Sagility acquired BirchAI, a healthcare technology firm specialising in cloud-based generative AI technology. This acquisition is expected to enhance member and provider engagement and reduce clients' operational costs through AI-powered customer support solutions using speech-to-text and large language models (LLMs) integrated with Sagility's engagement solutions.

As of March 31, 2024, Sagility had 35,044 employees --? 60.52 per cent of them women -- up from 30,830 a year ago.

Sagility India's revenue from operations during FY24 increased 12.7 per cent to Rs 4,753.56 crore against Rs 4,218.41 crore a year earlier.

Its profit after tax soared 50 per cent to Rs 228.27 crore for FY24 from Rs 143.57 crore in the preceding year.

For the June quarter, revenue from operations stood at Rs 1,223.33 crore and profit after tax at Rs 22.29 crore.

ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are the book-running lead managers to the issue. The company's equity shares are proposed to be listed on the BSE as well as the NSE.