Sagility India Ltd

Leadership position in the large and resilient U.S. Payer and Provider solutions market.

Domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers.

Suite of scalable, technology-enabled services and solutions, supported by proprietary tools and platforms.

Deep, long-term, expanding client relationships across healthcare Payers and Providers.

Multi-shore, scalable and flexible delivery model with certified data protection and service standards.

Experienced management and board, motivated employee base, marquee sponsor support and a sustainability focused culture.

The healthcare services industry is highly competitive and if the company is unable to compete effectively, it may adversely affect its business, financial condition and results of operations.

The company`s business is solely focused on the U.S. healthcare industry and may be adversely affected by factors affecting the U.S. healthcare industry, including a decline in the growth of the U.S. healthcare industry, reduction in outsourcing and other trends.

The company has, in the 12 months preceding the date of this Red Herring Prospectus, issued Equity Shares at a price which may be significantly lower than the Offer Price.

Goodwill and other intangible assets are its largest assets. Any impairment to the company goodwill or other intangible assets may adversely affect its reputation and financial condition.

One of its Independent Directors has received summons in relation to an ongoing investigation by SEBI of Linde India Limited and the matter is currently pending.

Pursuant to an external financing facility availed by one of its Promoters, Sagility B.V., shares of Sagility B.V. held by the company other Promoter, Sagility Holdings B.V. are pledged. In case of an event of default and consequent invocation of security, there may be a change in control, which may adversely impact its business. Further, the terms of such facility also impose certain conditions on disposal of assets of Sagility B.V., including Equity Shares of the Company, which may impact the Offer.

Anti-outsourcing legislation could adversely affect its business, financial condition and results of operations and impair the company ability to service its customers.

A downgrade in its credit rating could adversely affect the company ability to raise capital in the future.

Any failures to protect its proprietary technologies or information or the company intellectual property rights may have an adverse effect on its business, financial condition, and results of operations.

Its ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws as well as laws of the relevant international jurisdictions, which could adversely affect its business prospects and international growth strategy.

The company`s business could be adversely affected if its cannot keep pace with technological changes, sufficiently invest and successfully yield the intended results from its investments in technology, in case of any errors or system disruptions in its technology tools and platforms, or if the company services are rendered obsolete by technological developments.

If the company is unable to manage its employee expenses and resource utilization or fails to manage attrition and attract and retain skilled professionals, it may adversely affect its business, financial condition and results of operations. Further, due to a widespread employee base, the company is subject to the risk of employee claims and complaints.

If the company fails to deliver services in accordance with contractual requirements, its could be subject to significant costs or liability and its business, reputation and results of operations could be adversely affected.

If the company agreements with clients are terminated, its business, reputation and results of operations could be adversely affected.

The Company does not have any comparable listed peers and, therefore, investors must relies on their own examination of the Company.

As a significant portion of its business is attributable to certain large client groups in the U.S., its business and profitability is dependent on the company continuing relationships with such key clients.

There are outstanding legal proceedings involving the Company, Subsidiaries and Directors. Any adverse decision in such proceedings may adversely affect its business, financial condition, and results of operations.

If the company is not able to generate new service engagements, or if its business volumes fluctuate, it may adversely affect the company ability to grow its business and revenues.

If the company fails to accurately price its statements of work or overrun the company cost estimates, its business, financial condition and results of operations may be adversely affected.

The auditor`s report on its financial statements for the Financial Year 2024 contains certain qualifications.

If the company is unable to realize the anticipated benefits of acquisitions or experience delays or other problems in implementing its strategy of expanding through acquisitions, the company growth, business, results of operations and prospects may be adversely affected.

The company is subject to regulatory requirements in the performance of services and if the company fails to comply with such requirements, its reputation, business, financial condition, results of operations and cash flows may be adversely affected.

If its information security measures are compromised, damaged or interrupted by cyber incidents, breaches, or other security problems, its business, reputation and financial condition could be adversely affected.

The company is subject to data protection and other laws that restrict the collection, use and disclosure of health information and other sensitive or private information. Any failures to comply with such laws could result in liabilities and damage to its reputation.

The Equity Shares held by the nominees of its Promoters were not dematerialized at the time of filing of the Draft Red Herring Prospectus.

The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business, financial condition, cash flows and results of operations.

Restructuring of its clients` business and operations could result in changes to the company scope of work or a reduction in the number engagements, which may adversely affect its business, financial condition and results of operations.

The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.

Its past growth rates may not be indicative of the company future growth. If the company is unable to manage its growth and execute its strategies effectively, the company`s business, results of operations, cash flows and prospects may be adversely affected.

The company reported a restated loss for the period from July 28, 2021 until March 31, 2022 and may incur additional losses in the future.

Its business is subject to seasonality.

The company sales and marketing efforts may not result in new business, and its revenues may not justify expenses incurred towards sales efforts.

Its relationships with existing or potential clients who are in competition with each other may adversely impact the degree to which other clients or potential clients avail of its services, which may adversely affect the company.

Its international operations expose it to complex management, legal, tax and economic risks, and exchange rate fluctuations, which could adversely affect its business, financial condition and results of operations.

Upon completion of the Offer the company Promoter will continue to retain control over it.

Its ability to operate the company`s business, maintain its competitive position and implement its business strategy is dependent to a significant extent on the company Key Managerial Personnel and Senior Management.

Its insurance coverage may be inadequate, which could have an adverse effect on its financial condition and results of operations.

The company has outstanding statutory dues. Any delays in payment of statutory dues may adversely affect its reputation and financial condition.

The company inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, financial condition, results of operations and cash flows.

If the company is unable to ensure that its tools and platforms interoperate with, or if the company is unable to leverage software applications that are developed by third parties, its may become less competitive and the company`s business and operations may be harmed.

The company has entered into, and will continue to enter into, related-party transactions which may potentially involve conflicts of interest.

If the company is unable to establish and maintain an effective system of internal controls and compliances, its businesses and reputation could be adversely affected.

The company`s ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.

Certain sections of this Red Herring Prospectus contain information from the Everest Report which has been commissioned by it and any reliance on such information for making an investment decision in this Offer is subject to inherent risks.

Certain Non-GAAP financial measures and other statistical information relating to its operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.