Sagility India IPO: Exposure to Business Process Management Services in US Healthcare

Monday, 4 November 2024, 06:34

Sagility India IPO offers a compelling opportunity in the booming US healthcare market. Scheduled for November 5-7, 2024, the IPO aims to raise Rs 2,107 crore, allowing the company to focus on business process management services for health insurers. As Sagility India transitions from 100% to 85% promoter ownership, potential investors should assess the IPO valuation risk and high client concentration.
Indiatimes
Sagility India IPO: Exposure to Business Process Management Services in US Healthcare

Sagility India IPO Overview

Sagility India IPO is set for November 5-7, 2024, with an anticipated price range of Rs 28-30 and a total size of up to Rs 2,107 crore. The company's market capitalization is estimated at Rs 14,044 crore, offering exposure to essential business process management services in the US healthcare sector.

Business Model and Operations

  • Sagility India, previously known as Berkmeer India, specializes in services for healthcare providers, including claims management and billing.
  • With major revenue sourced from US health insurers, the firm faces risks related to dependence on a single market.
  • Promoter ownership will decrease to 85% following the IPO, necessitating compliance with regulatory stake reduction requirements.

Financial Performance

Over the past two fiscal years, Sagility India's revenue surged fivefold to Rs 4,753.6 crore. They reported a net profit of Rs 228.3 crore in FY24, showcasing robust financial recovery from a loss in FY22. With EBITDA margins ranging from 23% to 25%, this performance indicates a strong operational foundation.

Market Valuation and Investor Considerations

Demanding a trailing price-earnings (P/E) multiple of 61.5, Sagility India presents a unique investment challenge due to a lack of comparable pure-play companies in India. Investors should weigh the IPO valuation risk against potential returns in a competitive sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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