Inventurus Knowledge Solutions IPO Day 3: A Comprehensive Overview
The initial public offering (IPO) of Inventurus Knowledge Solutions, a company backed by renowned investor Rekha Jhunjhunwala, has generated significant buzz as it approaches its conclusion today, December 16. The IPO, which opened for subscription on December 12, has attracted considerable interest from investors, reflecting the growing appetite for tech-enabled healthcare solutions.
IPO Details
The book-built issue is valued at approximately ₹2,498 crore and is entirely an offer for sale (OFS). The price band for the shares is set between ₹1,265 and ₹1,329. The IPO is being managed by a consortium of leading financial institutions, including ICICI Securities, Jefferies India, JM Financial, JP Morgan India, and Nomura Financial Advisory and Securities (India). Link Intime India Private Limited has been appointed as the official registrar for the public issue.
Subscription Status
As of 2:20 PM on the final day of subscription, the IPO has been met with a robust response, being subscribed 18.87 times. This translates to bids for 19,56,69,507 shares against the 1,03,66,780 shares offered. The retail portion alone has been booked 10.73 times, while the segments reserved for non-institutional investors (NIIs) and qualified institutional buyers (QIBs) have been subscribed 17.14 times and 22.73 times, respectively. The employee category has also seen a healthy subscription rate of 4 times.
On the second day of subscription, the issue had already garnered an overall subscription of 2.65 times, indicating strong investor confidence in the company’s prospects.
Grey Market Premium (GMP)
The grey market premium (GMP) for Inventurus Knowledge Solutions has been a topic of interest among investors. The latest GMP stands at ₹406, a decrease from Friday’s ₹425. Based on the upper price band of ₹1,329, this suggests an estimated listing price of ₹1,735, reflecting a premium of approximately 30%.
Company Overview
Inventurus Knowledge Solutions is a tech-enabled healthcare solutions provider primarily focused on the U.S. market. The company offers a care enablement platform that assists physician enterprises, positioning itself as a key player in the rapidly growing healthcare technology sector.
Prominent investor Rekha Jhunjhunwala is one of the company’s promoters, holding 0.23% of the equity share capital prior to the IPO. Other notable promoters include Sachin Gupta and various discretionary trusts associated with the Jhunjhunwala family.
Financial Performance
The financial trajectory of Inventurus Knowledge Solutions has been impressive. For the fiscal year 2022 (FY22), the company reported a total comprehensive income of ₹229.44 crore, which increased to ₹303.13 crore in FY23 and is projected to reach ₹483 crore in FY24. For the six-month period ending September 30, the company recorded earnings of ₹209 crore, showcasing its growth potential.
Market Outlook and Expert Opinions
The healthcare technology sector is experiencing rapid growth, and Inventurus Knowledge Solutions is well-positioned to capitalize on this trend. Brokerage firm SMC Global Securities has expressed optimism about the company’s prospects, highlighting its scalable platform and layered infrastructure designed to address various pain points faced by healthcare providers.
However, SMC Global also cautioned that the company’s revenue is heavily reliant on healthcare organizations in the United States, exposing it to sector and geographic concentration risks.
Experts from Geojit Financial Services have assigned a "subscribe" rating to the IPO for medium to long-term investors, noting that at the upper price band of ₹1,329, the IPO is priced at a P/E ratio of 54.6 times based on FY25 annualized earnings, which they consider fair. Similarly, Bajaj Broking has recommended a "subscribe for long term" stance, indicating that the issue is fully priced based on current earnings projections.
Conclusion: Should You Apply?
The Inventurus Knowledge Solutions IPO has garnered significant interest, with strong subscription numbers and a positive outlook from analysts. Investors looking for exposure to the growing healthcare technology sector may find this IPO appealing. However, as with any investment, it is crucial to conduct thorough research and consult with financial advisors before making any decisions.
As the IPO concludes today, all eyes will be on the final subscription numbers and the anticipated listing price, which could set the tone for future offerings in the healthcare technology space.