About the Company:
Sagility India Ltd provides technology-enabled business solutions and services to clients in the U.S. healthcare industry.
Company is a pure-play healthcare focused services provider, and our clients include Payers (U.S. health insurance companies, which finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
Company’s services to Payers cater to various aspects of their operations including (i) core benefits administration functions such as claims management, enrolment, benefits plan building, premium billing, credentialing, and provider data management and (ii) clinical functions such as utilization management, care management, and population health management.
Company’s services to Providers include revenue cycle management functions such as financial clearance, medical coding, billing, and accounts receivable follow-up services.
Additionally, Company also provide some of the services that we provide to Payers to pharmacy benefit managers (“PBMs”) that manage prescription drugs for Members (i.e., insured persons) under health insurance plans.
All of the Company’s clients are located in the U.S. As of June 30, 2024, our five largest client groups (i.e., client entities together with their affiliates) had an average tenure of 17 years with the Business.
In the Financial Year 2024, Company helped our Payer clients process 105 million claims and handle over 75 million Member and Provider interactions.
Company delivers these services leveraging our tools and platforms, as needed, through our capable talent pool from our five global service delivery locations in India, the Philippines, the U.S., Jamaica and Colombia.
Company’s History:
Our Predecessor Company commenced providing services to Payer clients in 2000 and gradually increased the scope of services provided to Payers and Providers, and the number of its clients, through organic and inorganic growth. Our Company was incorporated on July 28, 2021 and we acquired the healthcare services business (the “Business”) of our Predecessor Company on January 6, 2022.
Description of Services Provided by the Company:
- Payer Services.
- Provider Services.
Claims Management: Company manages the claims adjudication processes for Payers. This process involves reviewing and validating claims from Providers against the relevant Member’s benefits plan and Provider contracts to ensure that claims are paid accurately and in a timely manner.
Company deploys a combination of intelligent automation tools and experienced employees with the aim of driving efficient and accurate processing of claims. We handle in-patient hospital, outpatient physician, laboratory, surgery, prescription drug/pharmacy, vision and dental claims.
Company utilize a smart cognitive extraction solution that extracts content from various documents, thereby reducing manual effort.
Clinical Management: Company’s clinical management services are aimed at delivering timely and quality clinical care for Members. Our large team of clinically trained and licensed staff provide these services which help Payers manage the cost of care while ensuring Members receive medically necessary and appropriate care from Providers.
Revenue Cycle Management (“RCM”): Company is an end-to-end RCM service provider. We provide scheduling and financial clearance services to Providers that include insurance verification, benefits validation, referral management and prior authorizations.
Company assist Providers with order entry, charge entry and medical coding. On the ‘back-end’ of the revenue cycle, we provide billing and follow-up services focused on collection and resolution of insurance and patient balances.
Company Acquired BirchAI, a healthcare technology company:
In March 2024, Company acquired BirchAI, a healthcare technology company offering cloud-based, generative AI technology.
Company expects that this acquisition will help enhance our Member and Provider engagement capabilities and further reduce our clients’ operational costs by providing various AI-powered real-time customer support solutions to manage complex healthcare transactions using proprietary speech-to-text and large language models (“LLMs”) that efficiently integrate with our end-to-end engagement solutions.
Breakdown of Revenue from operations:
Management Team:
- Mr. Ramesh Gopalan (Designation: Managing Director and Group CEO)
- Mr. Hari Gopalakrishnan (Designation: Non-Executive Non-Independent Director)
Objectives of the Issue:
Offer For Sale: (Rs.2106 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Peer Group Comparison:
Sagility’s healthcare-only focus across the payer and provider markets, there are no listed service providers in India or abroad that cater to US healthcare enterprises.
Positives for the Company:
Leader in the large and resilient U.S. Payer and Provider solutions market.
- With per capita healthcare expenditure amounting to US$12,555.3 (₹1,048,345.0) in 2022, the U.S. economy was the highest spender on healthcare among leading economies.
- Growth in the U.S. healthcare market is expected to be driven by a number of factors, including a rise in aging population and increasing prevalence of chronic diseases. While the healthcare market is expected to benefit from these tailwinds, challenges faced by the healthcare market are expected to drive outsourcing growth.
Domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers.
- Company provides technology-enabled services to Payer and Provider clients. This pure-play nature of our business, together with over 24 years of the Business’ experience and the effective use of technology, has helped us build domain expertise in our operations.
- Company provide end-to-end, comprehensive service offerings to Payer clients. Our tech-enabled healthcare services focussed across end-to-end front and back-office healthcare services sets us apart among business services firms, technology transformation firms, and back-office service providers.
Multi-shore, scalable and flexible delivery model with certified data protection and service standards.
- Company has a multi-shore service delivery model, whereby we provide our services from 31 locations in five countries (U.S., Colombia, Jamaica, India and the Philippines).
- As of June 30, 2024, company had 35,858 employees servicing Members across the U.S. In Financial Year 2024, we helped Payers process 105 million claims and handle over 75 million Member and Provider interactions.
Financials of the Company:
| (in Crores) | FY 23 | FY 24 | Upto 30th June 24 |
|---|---|---|---|
| Revenue | 4236.0 | 4781.5 | 1247.7 |
| Net Profit | 143.5 | 228.2 | 22.2 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 5th November 2024 |
| Issue Closes on | 7th November 2024 |
| Issue Price | Rs.28-30 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10 % |
| Minimum Lot | 500 Shares |
| Minimum Investment | Rs.15,000 |
| Issue Constitutes | 13.04 % |
| Issue Size | Rs. 2106 cr ($ 250 million ) |
| Market Cap | Rs.16,150 cr ($ 1.9 billion ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 70,21,99,262 (Rs.2106 cr) |
| Equity Shares Prior to the Issue | 468,13,28,413 |
| Equity Shares after the Issue | 538,35,27,675 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.53 | 56.60 | 3.54% | 15.03 |
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Important Dates:
| Finalization of Basis of Allotment | on or Before 8th November 2024 |
| Initiation of Refunds | on or Before 8th November 2024 |
| Credit of Equity Shares: | on or Before 11th November 2024 |
| Listing Date: | on or Before 12th November 2024 |
| Company Contact Info: |
|---|
| Sagility India Ltd No. 23 & 24, AMR Tech Park, Building 2A, First Floor, Hongasandara Village, Off Hosur Road, Bommanahalli, Bengaluru 560 068, Karnataka, India. Tel: +91- 80-7125 1500 Email: investorservice@sagilityhealth.com Website: www.sagilityhealth.com |
| Registrar to the Issue: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park L.B.S. Marg Vikhroli West Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: sagility.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
