Inventurus Knowledge Solutions IPO: Check out 10 key things to know from RHP before investing | Stock Market News

The subscription period for the Inventurus Knowledge Solutions IPO, backed by Rekha Jhunjhunwala, is set to start on Thursday, December 12, and will conclude on Monday, December 16. The allocation for anchor investors in the Inventurus Knowledge Solutions IPO is planned for Wednesday, December 11. The price band for the Inventurus Knowledge Solutions Limited IPO has been established between ₹1,265 and ₹1,329 for each equity share with a face value of Re 1. The lot size for the IKS Health IPO is 11 equity shares, and subsequent purchases must be made in multiples of 11 shares.

The firm has decreased its offering size, which now consists of an Offer For Sale (OFS) of 1.88 crore equity shares from promoters and individual investors, with no new issue portion included. Previously, the OFS was set at 2.82 crore, according to the draft documentation. As the offering is entirely an OFS, the company will not obtain any funds from the IPO, and all proceeds will go to the shareholders.

Currently, promoters and entities within the promoter group possess nearly 70 percent of the company’s shares, with support from Rekha Jhunjhunwala and RARE Enterprises.

ICICI Securities Ltd, Jefferies India Private Ltd, JM Financial Ltd, JP Morgan India Private Ltd, and Nomura Financial Advisory and Securities (India) Private Ltd are the lead managers overseeing the issue.

Inventurus Knowledge Solutions IPO

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Inventurus Knowledge Solutions IPO Promoters

The Company is promoted by Sachin Gupta, Rekha Jhunjhunwala, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, and Nishtha Jhunjhunwala Discretionary Trust. As of the date of this Red Herring Prospectus, their Promoters collectively own 107,352,790 Equity Shares with a face value of Re 1 each, which accounts for 62.57% of the total issued, subscribed, and paid-up Equity Share capital of the Company.

Inventurus Knowledge Solutions Business

Established in 2006, Inventurus Knowledge Solutions offers services tailored for healthcare organisations, concentrating on administrative functions. The company supports doctors and other healthcare practitioners by handling their documentation and administrative duties. IKS Health offers services such as clinical assistance, management of medical records, virtual medical scribing, among others.

This healthcare technology company seeks to optimize and accelerate patient access to essential care while reducing the administrative burden on healthcare providers.

Inventurus Knowledge Solutions Industry

The healthcare sector is experiencing a major transformation fueled by digital advancements. This movement towards innovation holds the potential to revolutionize healthcare, enhancing connectivity and reliance on data. Technologies such as blockchain, cloud computing/analytics, the Internet of Things (“IoT”)/wearables, Robotic Process Automation (“RPA”), and Artificial Intelligence (“AI”)/Machine Learning (“ML”) are essential in defining this new chapter in healthcare. These innovations seek to improve medical services, increasing their efficiency and elevating the overall healthcare experience for patients and providers alike.

Market Opportunity

Health expenditure in the United States is projected to increase from $4,799 billion in 2023 to $6,216 billion by 2028, reflecting a compound annual growth rate (CAGR) of 5.3%. This growth will be driven by an aging population and a rise in chronic diseases. Additionally, the total addressable market for provider enablement technology solutions in the US is expected to reach $323 billion by 2028.

Inventurus Knowledge Solutions Peers

According to the red herring prospectus (RHP), there are no listed companies in India or abroad that have a similar business portfolio or comparable scale. Consequently, it is not possible to provide a comparison with industry peers for their company.

Inventurus Knowledge Solutions Key Clients

Some of their key clients include Mass General Brigham Inc., Texas Health Care PLLC, and The GI Alliance Management.

Inventurus Knowledge Solutions Financials

For the half-year period ending September 2024, the company announced a revenue of ₹1,282.88 crore, considerably up from ₹630.87 crore during the corresponding period last year. The net profit for this period was ₹208.58 crore, a marginal increase compared to ₹205.38 crore from the previous year.

Inventurus Knowledge Solutions IPO key risks

Some of the key risks are as follows;

• The company is currently facing significant litigation, and a negative outcome could impact its business, reputation, and operational results.
• If the company does not successfully develop and launch new solutions using artificial intelligence and machine learning, or integrate these features into existing products like AI-powered speech-to-text solutions, it may experience a decline in revenue, operational performance, and overall reputation.

Lock-in of equity shares allotted to anchor investors

50% of the equity shares allotted to anchor investors in the anchor investor portion will be subject to a lock-in period of 90 days from the date of allotment. Meanwhile, the other 50% will have a shorter lock-in period of 30 days.

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.