Sagility BV, a subsidiary of EQT Private Capital Asia, successfully raised ₹366 crore through the divestiture of a 2.61 per cent stakeholding in Sagility India Ltd, as reported by various news portals on November 3. This capital infusion comes at a pivotal moment as the company gears up for its initial public offering (IPO).
Nine institutional investors, showing confidence in the firm’s prospects, acquired a stake in Sagility India just ahead of its highly anticipated IPO scheduled to launch on November 5, according to recent media reports. This interest is underscored by the ongoing traction in health-tech investments.
“The promoter has, on October 30 and October 31, executed a transfer of 12.2 crore equity shares at a price of ₹30 per share, which aligns with the upper price band, cumulatively amounting to ₹366 crore,” stated a notice from the company based in Bengaluru, published in prominent business newspapers. This transaction marks a significant milestone for the equity structure of the organization.
Sagility’s official notice detailed that a share purchase agreement was consummated between Sagility BV and its investors on October 30, reflecting investor confidence in the company’s future growth trajectory, as per media reports.
As noted, EQT Private Capital Asia also serves as the parent company of Sagility India Ltd, signaling the backing of a robust investment group.
Buyers of the stake
Among the nine investors involved, 360 ONE, through its Special Opportunities Fund – Series 8, and Monopolistic Market Intermediaries Fund, emerged as the largest stakeholders, acquiring a notable 1.07 per cent stake for ₹150 crore. This strategic purchase highlights their commitment to the healthcare sector.
Following closely in the acquisition sphere, Avendus Future Leaders Fund II secured a 0.9 per cent stakeholding for ₹126 crore, positioning itself as a significant player in this investment round. The presence of these esteemed funds underscores the potential growth of Sagility India.
Adani Group-owned Adani Properties also joined the fray, obtaining 0.14 per cent of the shares for ₹20 crore, amplifying the diverse roster of institutional backers involved, according to the media reports.
Additionally, a consortium of other shareholders, including Elpro International, Jasub Property Holdings, and the Jaya Chandrakant Gogri family, along with several trusts such as PAM Family Trust and Shradha Family Trust, collectively acquired an additional 0.5 per cent shares valued at ₹70 crore, displaying a broad interest in the company’s equity.
Following these transactions, the shareholding of the promoters will diminish to 97.39 per cent, down from 100 per cent, as indicated in the company’s drafts submitted on October 29, which were reported by various news outlets.
After the IPO and preceding share sales, Sagility BV is projected to maintain an 82.39 per cent stake in Sagility India, demonstrating ongoing substantial ownership despite the distribution.
About Sagility India IPO
Sagility operates as a healthcare-centric service provider primarily targeting US health insurance entities engaged in financing and reimbursing health service costs. Moreover, it caters to essential providers, including hospitals, physicians, and medical device manufacturers, thereby embedding itself in the healthcare ecosystem.
The IPO will consist solely of an offer-for-sale (OFS) component, translating to the sale of 70.2 equity shares by the promoter Sagility BV. The firm aims to generate ₹2,106.60 crore through this public issue, with proceeds directed towards the shareholders rather than to the company itself, further emphasizing its strategic financial maneuvering.
The anchor round for this public issue is scheduled for November 4, while the IPO will be open for public subscriptions until November 7, marking a significant timeframe for prospective investors.
ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India are poised as the leading merchant bankers for this initial public offering, indicative of their credibility in managing significant capital market transactions.
**Interview with Financial Analyst, Neha Sharma, on Sagility India IPO and Recent Stake Sale**
**Interviewer:** Welcome, Neha. We’re here to discuss some exciting developments regarding Sagility India and its upcoming IPO. Just recently, Sagility BV raised ₹366 crore by selling a 2.61% stake in Sagility India, correct?
**Neha Sharma:** Yes, that’s correct! The timing of this equity divestiture is quite significant as it coincides with the company’s IPO, scheduled to open for subscription on November 5.
**Interviewer:** What does this capital infusion mean for Sagility India as it prepares for its IPO?
**Neha Sharma:** This investment is crucial for enhancing liquidity and signaling to the market that institutional investors have confidence in Sagility’s growth potential. The ₹366 crore raised just ahead of the IPO reflects strong institutional support, which could attract more retail investors to the offering.
**Interviewer:** It’s interesting to note that nine institutional investors participated, including well-known funds like 360 ONE and Avendus. How does this institutional backing impact the IPO’s prospects?
**Neha Sharma:** Institutional backing is a strong vote of confidence and often encourages retail investors to participate as well. Funds like 360 ONE and Avendus not only bring capital but also strategic insight and governance, which can be beneficial for Sagility’s future trajectory in the health-tech sector. Their involvement could act as a catalyst for others looking at the IPO.
**Interviewer:** We also saw participation from Adani Properties. What does their involvement signal in terms of market dynamics?
**Neha Sharma:** The involvement of a prominent group like Adani adds credibility and broadens the investor base. It indicates that major players see long-term value in Sagility’s business model. Investors often regard such commitments from established groups as a positive sign of stability and growth potential.
**Interviewer:** You mentioned the health-tech sector. What trends are you seeing in this space that could benefit Sagility?
**Neha Sharma:** The health-tech sector is experiencing a surge in investments driven by increasing digital transformation in healthcare. Telehealth, electronic health records, and health analytics are witnessing significant growth. Sagility’s focus on health solutions positions it well to capitalize on this broad market trend.
**Interviewer:** Do you have any final thoughts on what potential investors should consider ahead of the IPO?
**Neha Sharma:** Potential investors should look at Sagility’s fundamentals, the strategic vision laid out by its management, and how the raised funds will be utilized to drive growth. Additionally, having robust institutional backing can often mitigate risks. it’s an exciting time for Sagility India, and it will be interesting to see the market’s response once the IPO opens.
**Interviewer:** Thank you, Neha, for your insights on Sagility India and the forthcoming IPO!
**Neha Sharma:** Thank you for having me!