Shares of Inventurus Knowledge Solutions (IKS) made a stellar debut in Thursday's trade (December 19) in an otherwise weak market. On the NSE, the shares listed at a premium of 42.96 per cent at Rs 1,900 in comparison to the issue price of Rs 1,329. while on the BSE it debuted at a price of Rs 1,856- a premium of 39.65 per cent.

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The blockbuster IPO  which saw stellar demand was booked 52.68 times during the three-day subscription period which ran between December 12 and closed on December 16.

Institutional investors emerged as the biggest bidders in the offer and booked 80.64 times the shares on offer. The other investor categories- NIIs or Non-Institutional Investors saw oversubscription of 23.25 times the shares on offer, while that for retail investors stood at 14.55 times.

The issue was a complete offer for sale or OFS of Rs 2,498 crore that post the issue will dilute the promoter holding from the erstwhile 69.7 per cent to 65.8 per cent. Also, as the issue is an OFS, the proceeds of the offer will not be received by the company.

In its IPO papers, the company mentioned that the objective of the initial share sale is to gain benefits associated with listing of the equity shares on the stock exchanges.

Analysts and brokerage view on IKS IPO

Zee Business Managing Editor, Anil Singhvi advised subscribing to the IPO given the company's robust inorganic track record, and strong management backed by the Jhunjhunwala family. Further, the market wizard suggested investors to book profit in the scrip after listing gains.

Some of the negatives of the company as specified by the expert are frequent changes in top management designation or team, limited new client acquisition, weakening financials, and expensive valuations.

Earlier Bajaj Broking also recommended to 'Subscribe' to the issue for long term. The brokerage said, Over the past  three fiscal years, the company has recorded an average basic EPS of Rs. 19.69 and an average RoNW of 34.28%. The issue is priced at a P/BV of 16.04 based on a NAV of Rs. 82.83 as of September 30, 2024, including the post-IPO NAV.

When annualizing the FY25 earnings to the post-IPO fully diluted equity capital, the asking price corresponds to a P/E ratio of 54.67. Based on FY24 earnings, the P/E ratio is 61.56, indicating the issue is fully priced, it added. 

About IKS

Rakesh Jhunjhunwala family-promoted Inventurus Knowledge Solutions (IKS Health) is a tech-enabled healthcare provider enablement platform that serves the United States healthcare market.