Rekha Jhunjhunwala-backed IKS Health sets IPO price band at Rs 1,265-1,329

Rekha Jhunjhunwala-backed Inventurus Knowledge Solutions Ltd (IKS Health), a leading provider of administrative services to healthcare organisations, has announced that its price band has been set at Rs 1,265 to Rs 1,329 per equity share of face value Re 1. The Rs 2,500 crore initial public offering (IPO) will open for subscription on Thursday, December 12, and close on Monday, December 16.

 

The company has also scheduled its allocation to anchor investors on Wednesday, December 11. With the IPO, the company aims to provide an opportunity for investors to participate in one of the fastest-growing niches in the US healthcare sector.

 

Founded in 2006, IKS Health specialises in managing administrative tasks for healthcare organisations, such as clinical support, virtual medical scribing, and documentation management. It primarily operates in the U.S., where the physician market is valued at $1.5 trillion. Within this market, IKS targets administrative tasks—a segment worth $225 billion, with $30-35 billion outsourced annually. This segment is growing at 12 per cent, outpacing the 7–8 per cent growth rate of the broader market.

 

IKS Health has ambitious plans to expand its footprint within the U.S. market, which still offers significant untapped potential. With 155,000 physicians already using its services, representing nearly 1 per cent of America’s doctors, the company sees a $28-29 billion opportunity through cross-selling its 16 platform features.

 

In the near term, the company is focused on integrating AQuity Solutions, a business it acquired recently, while activating cross-sell opportunities and improving margins. Over the long term, IKS aims to grow its share of the outsourced administrative task market to $100-150 billion in the next 10–15 years and maintain its position as one of the top three players in the sector.

 

The company plans to focus on small-scale tech acquisitions in areas such as low-code/no-code platforms and cognitive automation to enhance its proprietary technology offerings.

 

Sachin, the CEO of IKS Health, stated, "The current IPO is entirely a secondary offer with no primary component, reflecting our strong cash generation capabilities. With an EBITDA to operating cash flow conversion rate consistently around 95 per cent, we’re confident in our ability to fund future growth internally while continuing to pare down debt and invest in technology-driven acquisitions."