Inventurus Knowledge Solutions IPO day 3: GMP, subscription status, review, other details. Apply or not?

Inventurus Knowledge Solutions IPO day 3: The initial public offering (IPO) of famed investor Rekha Jhunjhunwala-backed company, Inventurus Knowledge Solutions, opened for subscription on Thursday, December 12, and is concluding today, i.e. Monday, December 16.

The book-built issue of about ₹ ₹2,498 crore is entirely an offer for sale (OFS) and has a price band of ₹1,265 to ₹1,329 per share.

ICICI Securities, Jefferies India, JM Financial, JP Morgan India, and Nomura Financial Advisory And Securities (India) are the book-running lead managers of the public issue, while Link Intime India Private Limited has been appointed the official registrar.

Inventurus Knowledge Solutions IPO GMP

According to market sources, the last grey market premium (GMP) of Inventurus Knowledge Solutions IPO was ₹406, lower than Friday's GMP of ₹425. Considering the upper price band of the issue at ₹1,329 and the last GMP, the estimated listing price of the stock is ₹1,735, a premium of 30 per cent.

Inventurus Knowledge Solutions IPO subscription status

The book-built issue is witnessing a healthy response from investors. By 2:20 PM on Monday, the issue was subscribed 18.87 times, with bids for 19,56,69,507 shares against 1,03,66,780 offered. The retail portion was booked 10.73 times, while the segments reserved for non-institutional investors (NIIs) and qualified institutional buyers (QIBs) were booked 17.14 times and 22.73 times, respectively. The category reserved for employees had seen a subscription of 4 times.

By the end of the second day of subscription, the issue had seen an overall subscription of 2.65 times, receiving bids for 2,75,04,840 shares. The category reserved for employees had seen a subscription of 1.90 times. The retail portion was subscribed 4.25 times, the NIIs' segment was booked 3.13 times, and the segment reserved for QIBs was subscribed 1.89 times.

Inventurus Knowledge Solutions IPO review

Inventurus Knowledge Solutions is a tech-enabled healthcare solutions provider. It focuses on the US markets and offers a care enablement platform that assists physician enterprises.

Prominent investor Rekha Jhunjhunwala is one of the promoters of this company. According to the RHP, before the issue, Rekha Jhunjhunwala owned 390,478 company shares, which is 0.23 per cent of the company's equity share capital. Other promoters of the company include Sachin Gupta, the Aryaman Jhunjhunwala Discretionary Trust, the Aryavir Jhunjhunwala Discretionary Trust, and the Nishtha Jhunjhunwala Discretionary Trust.

For the financial year 2022 (FY22), the company's total comprehensive income stood at ₹229.44 crore, which rose to ₹303.13 crore in FY23 and ₹483 crore in FY24. For the six-month period ending September 30, the company's earnings stood at ₹209 crore.

The technology-enabled healthcare provider space is growing rapidly. Inventurus Knowledge Solutions is a key player in the segment, and experts appear positive about the company's long-term growth prospects.

Brokerage firm SMC Global Securities underscored that Inventurus Knowledge Solutions is poised for bright prospects ahead, given the rising demand for its services in the areas where it operates.

"With the scalable platform and layered infrastructure that captures several pain points of healthcare providers, the company is well-positioned to capitalise on this growing market opportunity and address the increasing demand for a healthcare provider-enablement platform," said SMC Global Securities. 

However, the brokerage firm added that its revenues are primarily dependent on revenue generated from healthcare organizations based in the United States, and as a result, it is subject to the risks of sector and geographic concentration.

Should you apply?

Experts largely appear positive about the issue for the long term.

Brokerage firm Geojit Financial Services has a "subscribe" rating to the issue on a medium to long term basis.

The brokerage firm highlighted that at the upper price band of ₹1,329, Inventurus Knowledge Solutions IPO is available at a P/E of 54.6 times (on FY25 annualised), which appears fairly priced.

"Considering its asset-light and scalable model with high margin operations, diversified product offerings, significant expansion potential post-acquiring Aquity Holdings," said Geojit.

Bajaj Broking also has a "subscribe for long term" recommendation on the issue.

"When annualising 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," said Bajaj Broking.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.