Ahead of Sagility India IPO, Promoter Sagility BV Raises ₹366 Crore from Major Investors Including Adani Properties, Avendus, and 360 ONE
As Sagility India’s IPO nears, the promoter, Sagility BV, has raised ₹366 crore by divesting a 2.61% stake in Sagility India to nine institutional investors. This strategic stake sale, just days before the IPO launch, has attracted significant attention and features investments from prominent players like Adani Properties, Avendus Future Leaders Fund, and 360 ONE.
Sagility India, formerly known as Betaine BV and an affiliate of EQT Private Capital Asia, will open its ₹2,107 crore IPO for public subscription on November 5. The offer has a price range of ₹28-30 per share, and comprises an offer-for-sale of 70.2 crore shares by its sole promoter, Netherlands-based Sagility BV. The IPO will not include a fresh issue of shares, meaning all proceeds will go to Sagility BV, the selling shareholder, rather than the company itself.
Pre-IPO Stake Sale Details
Sagility BV’s recent stake sale involved the transfer of 12.2 crore shares at the upper price limit of ₹30 per share, amounting to a total transaction value of ₹366 crore. This pre-IPO divestment was executed on October 30 and 31 under share purchase agreements with several institutional investors, marking a secondary sale that drew substantial interest from the market.
Among the nine investors, 360 ONE, through its Special Opportunities Fund – Series 8 and Monopolistic Market Intermediaries Fund, emerged as the largest buyer, acquiring a 1.07% stake for ₹150 crore. Avendus Future Leaders Fund II also made a significant investment, purchasing a 0.9% stake for ₹126 crore. Adani Properties, owned by the Gautam Adani family, invested ₹20 crore, obtaining a 0.14% stake in Sagility India.
Other investors include Elpro International, Jasub Property Holdings, Jaya Chandrakant Gogri, Rashesh Chandrakant Gogri, PAM Family Trust, Shradha Family Trust, Unmaj Ventures, Uma Priyadarshini Kollareddy, and Kollareddy Ranganayakamma. Collectively, these new shareholders acquired a 0.5% stake valued at ₹70 crore.
Promoter Stake Post-Transactions and Post-IPO
Following this pre-IPO stake sale, Sagility BV’s ownership in Sagility India has decreased to 97.39% from the original 100%, as documented in the red herring prospectus filed on October 29. After the IPO, Sagility BV’s stake will further reduce to 82.39%. This positioning aligns with the strategic move to partially unlock the promoter’s holdings while still retaining a dominant share.
Sagility India’s Role and Market Valuation
Sagility India is a specialized service provider catering primarily to the U.S. healthcare sector. The company supports both payers, such as U.S. health insurance companies that finance and reimburse healthcare services, and providers, including hospitals, physicians, and medical device companies. With a focus on delivering healthcare-related business solutions, Sagility India plays a vital role in managing back-office and operational support for these healthcare clients.
With the IPO price band set between ₹28 and ₹30, the company is valued at around ₹14,044 crore at the upper end of this range. However, since this IPO is exclusively an offer-for-sale, all proceeds, excluding issue expenses, will go directly to Sagility BV, with Sagility India itself not benefiting from the funds raised.
IPO Timeline and Anchor Book Details
The anchor book for Sagility India’s IPO is scheduled to open on November 4, a day before the public subscription period begins. This will provide an initial opportunity for anchor investors to subscribe and show their support for the offering, setting the stage for retail and institutional investors when the IPO opens on November 5. The IPO subscription period will close on November 7.
ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India have been appointed as the merchant bankers for the IPO, facilitating the offer and ensuring compliance with regulatory standards. Their roles include advising on pricing, managing the subscription process, and liaising with institutional investors to ensure a smooth public listing.
Market Dynamics and Investor Interest
The timing and structure of this IPO reflect a calculated move by Sagility BV to capitalize on market interest and diversify its investor base ahead of Sagility India’s public debut. The healthcare outsourcing sector has been gaining traction, particularly in the U.S. market, where demand for cost-effective and efficient healthcare support services continues to grow. Sagility India’s strategic focus on the healthcare industry positions it favorably within this high-demand sector.
The pre-IPO involvement of key investors, such as Adani Properties and Avendus, underscores the market’s confidence in Sagility India’s growth potential. Notably, 360 ONE’s substantial investment demonstrates strong institutional belief in the company’s future performance and value proposition, especially given the relatively high valuation of ₹14,044 crore.
Strategic Positioning for Sagility India’s IPO
Sagility India’s IPO and the preceding stake sale represent a significant step for both Sagility BV and its flagship Indian subsidiary. By securing ₹366 crore through selective pre-IPO sales, Sagility BV has not only unlocked part of its holdings but also demonstrated a strong market appetite for Sagility India shares. This move allows Sagility India to diversify its investor base and build momentum as it prepares to go public, establishing its position in the healthcare services sector.
For investors, Sagility India’s IPO offers a unique opportunity to participate in a company positioned within the resilient healthcare outsourcing market. While Sagility India will not directly receive any proceeds from the IPO, the company’s valuation and operational focus are likely to attract investors looking to benefit from growth in the U.S. healthcare industry.
The involvement of prominent institutions and strategic investors further cements Sagility India’s credibility as it approaches its IPO date. As the public subscription period opens, all eyes will be on how retail and institutional investors respond to this offering and how Sagility India’s debut will influence the broader IPO market in India.