Inventurus Knowledge Solutions IPO Opens: Should You Invest in This Rs 2,498 Crore Offer?

The Rs 2,498 crore public issue of Inventurus Knowledge Solutions has opened for public subscription today. The initial public offering (IPO) is an offer for sale of up to Rs 18,795,510 shares, with an employee reservation for up to 65,000 shares. The price band for the issue is fixed at Rs 1,265-1,329 per share.

At the upper price band, the company would command a market capitalization of Rs 22,802 crore. The subscription window for the issue will close on Monday, December 16, 2024. The basis of allotment is expected to be finalized on Tuesday, December 17 and the shares will be credited to investors’ demat account by Wednesday, December 18. The tentative listing date for the Rekha Jhunjhunwala-backed company is Thursday, December 19, 2024.

Ahead of its IPO, the technology-enabled healthcare solutions provider raised Rs 1,120.18 crore from 61 anchor investors at Rs 1,329 per share. They included Fidelity Funds, Government Pension Fund Global, Abu Dhabi Investment Authority, Prudential Hong Kong, WF Asian Reconnaissance Fund, Destinations International Equity Fund, TIMF Holdings and HSBC Global, among others.

ICICI Securities Limited, Jefferies India Private Limited, JM Financial Limited, JP Morgan India Private Limited and Nomura Financial Advisory and Securities (India) Pvt Ltd are booking running lead managers for the issue. Link Intime Pvt Ltd is registrar to the offer.

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Inventurus Knowledge Solutions IPO GMP

Shares of Inventurus Knowledge Solutions were commanding a grey market premium of Rs 400 as of 10:56 AM on December 12, according to Investorgain.com. This indicates that the company is expected to list at a price of Rs 1,729 per share, up 30.10 per cent from the issue price.

Inventurus Knowledge Solutions IPO Subscription Rate

Inventurus Knowledge Solutions IPO was subscribed 19 per cent so far on the first day of the bidding process on Thursday at 01:12 PM. The portion for Non-Institutional Investors (NIIs) was subscribed 22% while the retail investor portion garnered 63% bids. Qualified Institutional Buyers (QIBs) portion was subscribed only 0.3 per cent so far.

Is Inventurus Knowledge Solutions worth subscribing to?

Anand Rathi Research - Subscribe

Anand Rathi Research, in its research note, has given “Subscribe for Long Term” rating to the IPO. The growth of the US healthcare market, coupled with the rising demand for outsourced services, presents substantial growth opportunities for Inventurus Knowledge Solutions to expand its operations, the brokerage firm said.

Analysts at Anand Rathi raised concerns that the issue being fully OFS the company won’t be benefitted directly by the proceeds. However, operating in the niche segment of healthcare solutions with rising demand with an asset-light model and looking at the company’s stable financials and absence of direct competitors will add advantage.

“We believe that this issue may be considered for its long term growth,” it added.

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Mehta Equities – Subscribe for Long term

Mehta Equities recommended investors “Subscribe” to the Inventurus Knowledge Solutions Ltd IPO for long term perspective.

Rajan Shinde, research analyst at Mehta Equities Ltd says the Inventurus Knowledge Solutions IPO brings investors an opportunity to invest in a prominent technology-driven healthcare solutions provider.

“The company’s expertise in integrating solutions across revenue optimization, clinical support, digital health, and EHR migrations positions it as a preferred partner in the healthcare ecosystem. After the acquisition of Aquity Holdings, IKS has significantly expanded its client base from 45 in FY2022 to 778 as of September 2024, reflecting strong growth and enhanced synergies,” Shinde said.

On valuation, Shinde said that with the upper price band of Rs 1329, the issue is asking for a market cap of Rs 22,802 crore. Based on annualised FY 2024 earnings and fully diluted post - IPO paid-up capital, the PE stands at 54.66x which seems fully priced looking at the company’s financial growth trajectory. As there is no listed peer to compare in similar business the company may command a premium valuation.

Shinde warned that the 100 per cent OFS, amounting to Rs 2498 crore, could be an area of concern for new investors.

Geojit Financials – Subscribe

Analysts at Geojit Financial Services have recommended subscribing to the IPO on a medium to long term basis. At the upper price band of Rs 1,329, Inventurus Knowledge Solutions is available at a P/E of 54.6x on FY25 annualised, which appears fairly priced.

“Considering its asset light and scalable model with high margin operations, diversified product offerings, significant expansion potential post acquiring Aquity Holdings, we recommend Subscribe rating to the issue on a medium to long term basis,” the brokerage firm said.

About the company

Founded in 2006, Inventurus Knowledge Solutions is a technology-enabled healthcare solutions provider and offers a care enablement platform assisting physician enterprises in the US, Canada and Australia, with a focus on the US markets.

IKS provides solutions that help outpatient and inpatient care organizations enhance clinical care, improve population health outcomes, and transition to the “Fee for Value” model. These services support healthcare organizations in managing essential administrative tasks, allowing them to focus on patient care while optimizing revenue and reducing operating costs.

In October 2023, IKS acquired Aquity Holdings, a company specializing in clinical documentation, medical coding, and revenue integrity solutions. This acquisition allows IKS to offer its services to Aquity’s customer base, which includes over 804 clients as of March 31, 2024.

As of September 30, 2024, IKS serves more than 778 healthcare organizations, including health systems, academic medical centers, and medical groups. Key clients include Mass General Brigham, Texas Health Care, and The GI Alliance Management.