Inventurus Knowledge Solutions IPO Day 1 Live Updates: Issue subscribed 1.36x on first day; check latest GMP

According to bid details available on NSE, Inventurus Knowledge Solutions IPO was subscribed 1.36 times at the end of the first day. Retail portion was susbcribed the most at 1.67 times, followed by QIB portion that garnered 1.54 times bids. NII quota was booked 0.79 times. 

• Maximise revenue from existing clients through a “land and expand” approach
• Focus on large healthcare organizations
• Move from a “human-led tech-enabled” model to a “tech-led human-enabled” model
• Bundling solutions for greater value-add
• Leverage automation and Generative Artificial Intelligence (AI) to aid the operations
• Partner with innovative clients for product development and innovation
• Develop solutions to address the needs of entities moving to “Value-Based Care”

Inventurus Knowledge Solutions IPO sailed through on Day 1 of the bissing process. The issue was subscribed 1.10 times on strong retail and QIB buying. Both these quotas also got fully subscribed. Meanwhile, NII quota garnered 42% bids.

• Comprehensive one-stop platform with diversified offerings across the outpatient and inpatient care value chain, serving key stakeholders such as patients, physicians, nurses, and healthcare organizations.
• Leveraging digital evolution, transformation, and automation technologies to create sustained value based on outcomes delivered.
• Strong brand driven by clinical thought leadership through IKS Advisory Board, a healthcare industry leadership forum, and partnerships with industry players, as evidenced by multiple awards and recognitions.
• Marquee large enterprise clientele that include academic medical centers and healthcare systems, multispecialty and single-specialty medical groups, ancillary healthcare organizations, value enablers, and other outpatient healthcare delivery organizations, with client stickiness reflected in revenues from repeat clients of over 98% in the last three fiscals.
• Sustainable and scalable business model offering clients flexibility, cost savings, and high-touch engagement through access to project executive sponsors and leadership teams, creating cross-selling opportunities.
• Healthy financial performance with growth and improving margins.
• Experienced and entrepreneurial-driven leadership team.

The retail portion of Inventurus Knowledge Solutions IPO was fully subscribed within a few hours of opening. As of 2.45 pm, the retail portion's subscription stood at 1.01 times. Investors applied for 18,89,492 shares against 18,73,050 shares on offer, resulting in oversubscription. 

Overall, Inventurus Knowledge Solutions IPO was subscribed 36%.

Bidding began in the QIB category of Inventurus Knowledge Solutions IPO, with the quota being subscribed 16% so far. Overall, the issue was booked 36%.

In October 2023, IKSL acquired Aquity Holdings, a provider of technology-driven clinical documentation, medical coding, and revenue integrity solutions. The acquisition enables IKSL to cross-sell to Aquity’s 804+ customers (as ofMarch 31, 2024) and expand its market reach. IKSL’s client base has grown from 45 clients, in FY22 to 49 clients in FY23. After the acquisition of Aquity Holdings, in FY24, they had 853 clients.

• Reliance on the US market, as 95.8% of total revenue in H1 FY25 was generated from US customers.
• Revenues are dependent on the ability to maintain and expand existing client relationships.
• Inability to successfully integrate recently acquired Aquity Holdings

As per the Zinnov Report, the outsourced services market in the technology-enabled healthcare provider space is growing rapidly as providers seek to boost efficiency and streamline operations. By leveraging technology-enabled service providers to handle workflows like billing, revenue cycle management, patient engagement, and data analytics, healthcare organizations can focus on core patient care activities and achieve higher quality care while maintaining operational excellence.

Inventurus Knowledge Solutions IPO was subscribed 15% so far on Day 1 of the bidding process. The retail investor portion was booked 54%, while the NII quota was subscribed 19%. 

Inventurus Knowledge Solutions, founded in 2006, is a tech-driven healthcare solutions provider focused on the US market. IKSL’s care enablement platform supports healthcare enterprises in the US, Canada, and Australia by streamlining administrative, clinical, and operational tasks, enhancing clinical outcomes, optimizing revenue, reducing burnout, and enabling value-based care through digital health solutions. As of September 30, 2024, IKSL served 778 healthcare organizations.

IKSL’s revenue model is based on:

i. a percentage of payments collected by clients,

ii. transaction volume, and

iii. monthly fees (e.g., per physician).

IKSL benefits as clients grow by acquiring medical groups, opening clinics, hiring physicians, and increasing patient volumes.

The company’s scalable business model enables it to expand operations without proportionately increasing costs, enhancing profitability.

• Berjis Minoo Desai is the Chairman and Non-Executive Director of the company, with over 14 years of experience in mergers and acquisitions, derivatives, corporate and financial laws, and international commercial arbitration. He was previously a senior partner at J. Sagar Associates.
• Sachin Gupta is a Promoter and Whole-time Director on the Board of the company, as well as the Chief Executive Officer of IKS Inc. He brings over 16 years of experience in business management.
• Joseph Benardello is a Non-Executive Director on the Board of the company.
• Dr. Mary Earley Klotman serves as a Non-Executive Director on the Board of the company.
• Utpal Hemendra Sheth is a Non-Executive Nominee Director on the Board. He has been with the company since 2014 and has worked with Rare Enterprises, a proprietary asset management firm, for the past 19 years.
• Amit Goela is a Non-Executive Nominee Director on the Board, associated with the company since 2021. He has been part of Rare Enterprises' management team for the past 15 years.
• Clarence Carleton King II is an Independent Director on the Board and is the CEO of Shoal Creek Advisors, LLC.
• Dr. Keith Anthony Jones is an Independent Director on the Board.
• Theresa Stone is an Independent Director with over 26 years of management experience. She is currently the Managing Partner at Oliver Wyman.
• Nithya Balasubramanian is the Chief Financial Officer, with over 16 years of experience in marketing.
• Sameer Chavan serves as the Company Secretary and Compliance Officer, bringing 16 years of experience in secretarial compliance.

Inventurus Knowledge Solutions IPO was subscribed 8% so far on the first day of the bidding process on Thursday. The portion for Non Institutional Investors (NIIs) was subscribed 10% while the retail investor portion garnered 32% bids. Qualified Institutional Buyers (QIBs) have not received any bids yet.

1. Ashra Family Trust (Promoter Group) is selling up to 3,376,311 equity shares

2. Aryaman Jhunjhunwala Discretionary Trust (Promoter) is selling up to 1,119,300 equity shares

3. Joseph Benardello (Individual) is selling up to 3,041,812 equity shares

4. Aryavir Jhunjhunwala Discretionary Trust (Promoter) is selling up to 1,119,300 equity shares

5. Gautam Char (Individual) is selling up to 1,251,378 equity shares

6. Nishtha Jhunjhunwala Discretionary Trust (Promoter) is selling up to 1,119,300 equity shares

7. Parminder Bolina (Individual) is selling up to 1,251,378 equity shares

8. Shane Hsuing Peng (Individual) is selling up to 994,233 equity shares

9. Jeffrey Philip Freimark (Individual) is selling up to 1,141,001 equity shares

10. Berjis Minoo Desai (Individual) is selling up to 676,549 equity shares

IKSL’s revenue grew from ₹764 crore in FY22 to ₹1,818 crore, at a CAGR of 54%, while PAT rose at a CAGR of 26% to ₹371 crore. In FY24, the EBITDA margin stood at 28%, while the PAT margin was 20.4%.

"At the upper price band of ₹1,329, IKSL is available at a P/E ratio of 54.6x (based on FY25 annualized earnings), which seems reasonably priced. Given its asset-light and scalable business model, high-margin operations, diversified product offerings, and significant expansion potential following the acquisition of Aquity Holdings, we recommend a "Subscribe" rating for the issue on a medium to long-term basis," said Geojit Financial Services.

The company was incorporated as “Inventurus Knowledge Solutions Private Limited” on September 5, 2006. The promoters of the company are Sachin Gupta, Rekha Jhunjhunwala, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, and Nishtha Jhunjhunwala Discretionary Trust. Currently, the promoters hold 107,352,790 equity shares of face value ₹1 each, representing 62.57% of the issued, subscribed, and paid-up equity share capital of the company.

Inventurus Knowledge Solutions IPO was subscribed 1% within 15 minutes of opening. The retail investors led, with their quota garnering 3% bids followed by NIIs who applied for 1% of their allotted quota. QIB investors did not place any bids yet.

• Leading partner for outpatient and inpatient care organizations.
• Healthy financial performance with growth and improving margins
• No listed peers.
• Complete OFS: The Company receives no proceeds from the IPO.
• Investment recommendation: Suitable for long term investors.

The initial public offer for Inventurus Knowledge Solutions kicked off for subscription. Investors can start placing their bids on this Rekha Jhunjhunwala-owned company. They can place bids till Monday, December 16.

• IPO Open Date: Thursday, December 12, 2024
• IPO Close Date: Monday, December 16, 2024
• Basis of Allotment: Tuesday, December 17, 2024
• Refund Initiation: Wednesday, December 18, 2024
• Credit of Shares to Demat: Wednesday, December 18, 2024
• Listing Date: Thursday, December 19, 2024

The company will not receive any proceeds from the offer and will go to the selling shareholders as the IPO is entirely an offer for sale (OFS).

Inventurus Knowledge Solutions Limited secured ₹1,120.18 crores from 61 anchor investors at a price of ₹1,329 per equity share. 

The group of anchor investors participating in Inventurus Knowledge Solutions' public offering includes prominent names such as Fidelity Funds, Government Pension Fund Global, HDFC Mutual Fund, Abu Dhabi Investment Authority, Prudential Hong Kong Ltd, Axis Mutual Fund, WF Asian Reconnaissance Fund, Mirae Asset, and HSBC Global, among others.

 As reported in the company's exchange filing on Wednesday, Fidelity Fund and Government Pension Fund Global both accounted for 5.1%, while Abu Dhabi Investment Authority, Prudential Hong Kong Ltd, WF Asian Reconnaissance Fund, and Axis Mutual Fund each held 4.4%, making them the leading anchor investors.

IKS Health IPO GMP today is +422. This indicates Inventurus Knowledge Solutions share price was trading at a premium of ₹422 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Inventurus Knowledge Solutions share price is indicated at ₹1,751 apiece, which is 31.75% higher than the IPO price of ₹1,329.

According to the activities in the grey market over the last seven sessions, today's IPO GMP is showing an upward trend, indicating a promising listing. The minimum GMP recorded is ₹0, while the maximum GMP observed is ₹422, based on insights from experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.