Swedish private equity firm EQT has sold part of its stake in Sagility India Ltd to a bunch of investors ahead of the healthcare business process management company’s initial public offering.
EQT sold about 122 million shares at a price of Rs 30 apiece, totalling Rs 366 crore ($43.5 million), to investors including Adani Properties Pvt. Ltd, Avendus Future Leaders Fund II and funds managed by 360 One (formerly IIFL Wealth).
Other investors included Elpro International Ltd, Jasub Property Holdings LLP, Jaya Chandrakant Gogri and Rashesh Chandrakant Gogri, PAM Family Trust, Shradha Family Trust, and Unmaj Ventures LLP, EQT said in a disclosure.
The share sale comes ahead of Sagility’s IPO. The anchor book for the IPO opened Monday while retail and other institutional investors can bid for the shares from Tuesday through Thursday.
Sagility had filed its IPO papers with the Securities and Exchange Board of India on June 28. SEBI approved the IPO on Oct. 9. The IPO is entirely an offer for sale of up to 702.2 million shares, down from 984.46 million shares that EQT intended to sell earlier. Sagility is not issuing any fresh shares.
EQT will garner about 2,106.6 crore ($250 million) at the upper end of the IPO price band of Rs 28-30 apiece and will likely eke out modest returns on its investment in the company.
ICICI Securities Ltd, IIFL Securities Ltd, Jefferies India Pvt Ltd, and JP Morgan India Pvt Ltd are the book-running lead managers for the IPO.
Sagility was earlier known as HGS Healthcare and was part of Mumbai-listed Hinduja Global Solutions Ltd. Baring PE Asia acquired HGS Healthcare in August 2021 for $1.2 billion and renamed it Sagility the following year.
Established in 2021, Bengaluru-based Sagility provides technology-driven services to both healthcare payers and providers, covering core benefits administration and clinical services. These include claims management, payment integrity, clinical management, and more. Sagility's consolidated net profit for FY24 jumped 59% year-on-year to Rs 228.3 crore. Revenue from operations climbed to Rs 4,753.6 crore from Rs 4,218.4 crore in FY23.