Inventurus Knowledge Solutions IPO opens for subscription; should you apply?

The initial public offering (IPO) of Inventurus Knowledge Solutions (IKS) opened for subscription today (December 12, 2024) and will conclude on December 16, 2024. IKS, a healthcare solutions provider that offers a care enablement platform for assisting physician enterprises across the United States, Canada and Australia, has fixed a price band for the Issue between Rs 1,265 and Rs 1,329 and aims to raise Rs 2,497.92 crore through the offer for sale (OFS) of 18,795,510 shares. So, here is a low-down on the issue details together with analysts view:

IKS IPO Details: Lot size, allotment & listing date BRMLs, others

The lot size of the IPO is 11 shares. The allotment date is fixed on Monday, December 17, 2024, which means applicants can check their status on December 18. The IKS company's shares will debut on the exchanges - NSE and BSE - on Thursday, December 19, 2024.

IKS IPO | BRLMs & registrar

Book Running Lead Managers (BRLMs): ICICI Securities, Jefferies India, JM Financial, JPMorgan India, and Nomura Financial Advisory and Securities India.

Official Registrar: Link Intime India Private

Rekha Jhunjhunwala among promoters

Rekha Jhunjhunwala, the wife of late legendary investor Rakesh Jhunjhunwala, is one of the promoters of IKS. After his death, Rekha Jhunjhunwala inherited 1,95,239 equity shares of face value of Rs 1 each in the company, according to the RHP.

Should you apply for Inventurus Knowledge Solutions IPO?

Analysts at SBI Securities have recommended applying for Inventurus Knowledge Solutions IPO at a cut-off price, citing that the upper price band (Rs 1,329 is valued at an FY24 P/E multiple of 61.5x on post-issue capital.

"The company has showcased remarkable financial performance over the years with Revenue, EBITDA, and PAT growing at a CAGR of 54.3 per cent, 32.3 per cent, and 26.1 per cent, respectively over the FY22-FY24 period," SBI Securities' analysts said.

Further, they noted that 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."  

Meanwhile, another brokerage, Geojit Financial has also advised to 'subscribe' to the issue from the medium to long-term perspective. According to the brokerage, the upper price band of the IPO is fairly priced.

"Considering its asset-light and scalable model with high margin operations, diversified product offerings, and significant expansion potential post acquiring Equity Holdings, we recommend subscribe rating to the issue on a medium to long term basis," the brokerage said.