The initial public offering (IPO) of Jhunjhunwala-backed Inventurus Knowledge Solutions (IKS Health) saw a strong response from the investors during the third and final day of the bidding process. The issue was overall booked 1.36 times and ended day two with 2.66 times subscription.
Inventurus Knowledge Solutions is selling its shares in the price band of Rs 1,265-1,329 apiece. Investors can apply for a minimum of 11 shares and its multiples thereafter. It is looking to raise Rs 2,497.92 crore via IPO, which is entirely an offer-for-sale of up to 1,87,95,510 equity shares.
According to the data, the investors made bids for 22,27,21,598 equity shares, or 21.48 times, compared to the 1,03,66,780 equity shares offered for the subscription by 2.45 pm on Monday, December 16. The three-day bidding, which opened on Thursday, December 12, concludes today.
The allocation for qualified institutional bidders (QIBs) was subscribed 26.84 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 18.05 times. The portion kept for employees was booked 4.11 times. However, the quota set aside for retail investors was booked 11.17 imes as of the time.
Incorporated in 2006, Inventurus Knowledge Solutions (IKS Health) provides services to healthcare enterprises such as handling administrative chores/work. It helps doctors and other healthcare providers by handling their paperwork and administrative tasks. IKS Health offers services such as clinical support, medical documentation management, virtual medical scribing and more.
The grey market premium of Inventurus Knowledge Solutions has remained stable amid the rising volatility and strong bidding. Last heard, the company was commanding a premium of Rs 400-410 in the unofficial market, suggesting a listing gain of 31 per cent for the investors. However, the premium in the grey market stood around Rs 375 on the first day of the bidding.
Brokerage firms have mostly had a positive view on the issue but suggest it for a long-term subscription. They are positive on the company's leading market position, healthy financials, improving markets and unique business model. However, ongoing litigations and complete OFS nature of the issue may dent its prospects.
IKS Health's valuation looks attractive given the growth history, and prospects, supported by high-margin operations, robust technological differentiation, and an asset-light business model. Its strong fundamentals, scalable solutions, and alignment with evolving healthcare needs position it as a growth focused and sustainable investment, said KR Choksey with a 'subscribe' rating.
For the six months ended September 30, 2024, Inventurus Knowledge Solutions reported a net profit of Rs 208.58 crore with a revenue of Rs 1,294.61 crore. The company's bottomline stood at Rs 370.49 crore with a revenue of Rs 1,857.94 crore for the financial year 2023-24.
Inventurus Knowledge Solutions has reserved 65,000 equity shares for the eligible employees of the company. It has reserved 75 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will have only 10 per cent of reservation in the IPO.
Inventurus Knowledge Solutions is valued at FY24 P/E multiple of 61.5 times on post issue capital. The company has showcased remarkable financial performance over the years with Revenue/EBITDA/PAT growing at a CAGR of 54.3%/32.3%/26.1% respectively over the FY22-FY24 period, said SBI Securities.
"However, any adverse developments from the ongoing litigations against the company can act as a possible pain point in future. The company operates a unique business model and does not have any like-to-like comparable listed peers. We recommend investors to subscribe to the issue at a cut-off price," it said.
ICICI Securities, Jefferies India, JM Financial, JP Morgan India and Nomura Financial Advisory and Securities (India) are the book running lead managers of the Inventurus Knowledge Solutions IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on Thursday, December 19 on both BSE and NSE.