Inventurus Knowledge Solutions IPO opens today: GMP up 32%; Should you bid?

Rekha Jhunjhunwala-backed Inventurus Knowledge Solutions (IKS) IPO, comprising an entirely offer for sale (OFS) of 18,795,510 equity shares, is available at a price band of Rs 1,265-Rs 1,329 per share

Inventurus Knowledge Solutions IPO: Rekha Jhunjhunwala-backed initial public offering (IPO) of Inventurus Knowledge Solutions opens for public subscription today, December 12, 2024. At the upper end of the price band, the company seeks to raise Rs 2,497.92 crore through the offering, which comprises an entirely offer for sale (OFS) of 18,795,510 equity shares. The company announced that it raised Rs 1,120.18 crore from anchor investors in the bidding concluded on December 11, 2024.

 

In the OFS, Ashra Family Trust, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, and Nishtha Jhunjhunwala Discretionary Trust are the promoters participating. Individual shareholders participating in the OFS include Joseph Benardello, Gautam Char, Parminder Bolina, Jeffrey Philip Freimark, Shane Hsuing Peng, and Berjis Minoo Desai.

 

 

The public offering is available at a price band of Rs 1,265 to Rs 1,329 per share, with a lot size of 11 shares. Accordingly, investors can bid for a minimum of 11 shares and in multiples thereafter. A retail investor needs a minimum of Rs 14,619 to bid for one lot comprising 11 shares, while the maximum allowed bid for a retail investor is 13 lots (143 shares), requiring Rs 1,90,047.  Also read: Emerald Tyre Manufacturers listing gain

 

Meanwhile, Inventurus Knowledge Solutions commanded a strong premium in the grey market on Thursday. The company’s shares were quoted at Rs 1,751 apiece in the grey market, reflecting a premium of Rs 422 or 31.75 per cent over the upper price band of Rs 1,329, according to sources tracking unofficial market activities.

 

The public subscription window for the Inventurus Knowledge Solutions IPO will close on Monday, December 16, 2024. Following the closure of the subscription window, the basis of allotment of shares is expected to be finalised on Tuesday, December 17, 2024, with shares credited to investors' demat accounts by Wednesday, December 18, 2024.

 

Inventurus Knowledge Solutions shares are slated to list on the BSE and NSE tentatively on Thursday, December 19, 2024.

 

Link Intime India serves as the registrar for the IPO, while the book-running lead managers for the issue include ICICI Securities, Jefferies India, JM Financial, JP Morgan India, and Nomura Financial Advisory and Securities (India).

 

As per its Red Herring Prospectus (RHP), Inventurus Knowledge Solutions will not receive any proceeds from the offer. All proceeds, net of offer-related expenses, will go to the selling shareholders. 

 

Should you subscribe to the Inventurus Knowledge Solutions IPO?

 

Deven Choksey Research - Subscribe

Karan Kamdar, Research Analyst at Deven Choksey Research, has assigned a "Subscribe" rating to the IPO. Kamdar highlighted the company's leadership in healthcare operations and analytics, primarily in the US, with a focus on revenue cycle management (RCM), telehealth, and clinical data optimisation. IKS leverages proprietary technology to deliver scalable, cost-efficient, and high-impact solutions.

 

“The company demonstrates strong client retention, with over 98 per cent of revenue derived from repeat customers, underpinned by its ‘land and expand’ strategy. The US healthcare market's growth trajectory, combined with increasing reliance on outsourced services, offers significant expansion potential for IKS,” Kamdar wrote in a research note.

 

At the upper end of the IPO price band of Rs 1,329, Kamdar noted the valuation at 61.6x P/E looks attractive given the company’s growth history, high-margin operations, technological differentiation, and asset-light business model. “The company’s strong fundamentals, scalable solutions, and alignment with evolving healthcare needs position it as a sustainable investment. Hence, we assign a ‘Subscribe’ rating,” Kamdar added.

 

Swastika Investmart - Subscribe for long-term

Brokerage firm Swastika Investmart recommended investors subscribe to the IPO for the long term. The company has demonstrated healthy financial performance with growth and improving margins. Swastika highlighted that IKS is a leading partner for outpatient and inpatient care with no listed peers.

 

Mehta Equities - Subscribe for long-term

Rajan Shinde, Research Analyst at Mehta Equities, also recommended subscribing to the IPO for the long term. Shinde emphasised the company’s expertise in integrating solutions across revenue optimisation, clinical support, digital health, and EHR migrations, making it a preferred partner in the healthcare ecosystem. Following its acquisition of Aquity Holdings, IKS significantly expanded its client base from 45 in FY2022 to 778 as of September 2024, reflecting strong growth and synergies.

 

On valuation, Shinde said that at the upper price band of Rs 1,329, the issue is asking for a market capitalisation of Rs 22,802 crore. Based on annualised FY2024 earnings and fully diluted post-IPO paid-up capital, the P/E stands at 54.66x. While the valuation seems fully priced, the lack of listed peers justifies a premium. Shinde cautioned that the 100 per cent OFS, amounting to Rs 2,498 crore, could be a concern for new investors.

 

About Inventurus Knowledge Solutions

Inventurus Knowledge Solutions (IKS Health) operates in the healthcare operations and analytics domain, delivering solutions to optimise revenue cycle management (RCM) and enhance operational efficiencies for clients, primarily in the US healthcare sector. The company utilises a robust technology platform, proprietary tools, and offshore delivery centers to achieve significant cost advantages and deliver measurable outcomes for healthcare providers.

 

The promoters of the company include Sachin Gupta, Rekha Jhunjhunwala, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, and Nishtha Jhunjhunwala Discretionary Trust, as mentioned in the RHP.