Is Inventurus Knowledge Solutions IPO Good or Bad - Detailed Review

Inventurus Knowledge Solutions IPO is kicking off its initial public offering which will be open from December 12, 2024, to December 16, 2024. While considering applying for this IPO, certain questions may arise in your mind, some of which include whether the Inventurus Knowledge Solutions IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Inventurus Knowledge Solutions IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Company Overview of Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions, also known as IKS Health, was established in 2006 and is headquartered in Mumbai, India. It functions as a pivotal partner for healthcare providers in the United States, aiming to enhance their financial, clinical, and operational efficiencies. IKS Health primarily serves hospital-owned and independent medical groups, along with outpatient groups, improving care quality while optimizing revenues and minimizing operating costs.

Inventurus Knowledge Solutions has a robust workforce of over 13,528 professionals spread across the United States, India, Canada, and Australia, IKS Health maintains a significant global presence. This expansive network enables the company to provide comprehensive support to some renowned healthcare institutions such as Caremount Medical, Select Medical, and Brigham and Women’s Hospital. The company’s broad operational base ensures it can deliver high-quality services consistently, catering to the complex needs of its diverse clientele.

In October 2023, IKS Health significantly expanded its capabilities by acquiring Aquity Holdings. This strategic move increased the company's annual revenue to approximately Rs.1,865 crores. Post-acquisition, IKS Health now supports around 150,000 clinicians across major U.S. healthcare institutions, reinforcing its status as a powerhouse in healthcare technology and service provision.

Inventurus Knowledge Solutions underlining its commitment to innovation, IKS Health invested in Sift Healthcare in March 2023. This investment brought advanced decision-support tools into its portfolio, particularly enhancing capabilities in medical billing and patient payments. This strategic enhancement showcases IKS Health's ongoing dedication to adopting advanced technologies to streamline operations and improve outcomes in the healthcare sector.

Industry Overview of Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions operates in the rapidly growing healthcare business process outsourcing (BPO) industry, which plays a crucial role in helping healthcare organizations in the U.S. manage their clinical, financial, and administrative functions more effectively. The global healthcare BPO market is expanding quickly due to increased demands from healthcare providers to cut costs and manage patient care more efficiently. This growth is driven by the rising costs of healthcare, the increasing complexities of healthcare regulations, and the growing use of technology in healthcare management.

The United States, where Inventurus primarily serves, has one of the world's most substantial healthcare markets. In recent years, U.S. healthcare spending has surged, largely due to an aging population, the high incidence of chronic diseases, and the rising cost of medical technologies and pharmaceuticals. These factors have compelled healthcare providers to seek out BPO services like those offered by Inventurus to streamline operations and reduce expenses without compromising on patient care quality.

The move towards value-based care in the U.S. is reshaping the healthcare industry. In this system, doctors and hospitals are paid based on how well their patients recover and maintain their health, rather than just paying for each service provided. This approach places a premium on the quality of care and encourages healthcare providers to work efficiently. As this trend gains traction, there's a growing demand for specialized services like those provided by Inventurus, which help manage detailed aspects of healthcare such as billing, patient care coordination, and following healthcare laws.

Inventurus is well-positioned to capitalize on these industry trends with its expertise in integrating technology with healthcare processes. Inventurus Knowledge Solutions helps healthcare organizations operate more smoothly, improve how they care for patients, and stay up-to-date with the latest rules and regulations. As the healthcare industry continues to embrace technology and looks for ways to be more efficient, the services provided by Inventurus are becoming increasingly important, making it a significant player in the healthcare BPO market.

Financial Overview of Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions experienced strong growth in its operational revenue, reporting Rs.1,817.92 crores in FY24, a significant rise from Rs.1,031.30 crores the previous year. This jump in revenue shows that the company is expanding effectively, handling more business, and enhancing its market presence.

Inventurus reported an EBITDA of Rs.520.30 crores in FY24 compared to Rs.360.39 crores in FY23. However, the overall EBITDA margins have decreased to 28.62% in FY24 from 34.95% in 2023 suggesting a rate of operational cost for the company.

The Profit After Tax (PAT) was reported at Rs.370.49 crores in FY24 compared to 305.22 crores in FY23. The overall increase in the cost is also being reflected in the PAT margin which has decreased from 29.60% in FY23 to 20.38% in FY24.

For the financial year 2024, the company has reported an ROE and ROCE of 32% and 31.56%, respectively. This indicates that, despite the decrease in the overall margins, the company has generated exceptional returns on the capital invested by the shareholders and has efficiently made use of its overall resources.

Inventurus Knowledge Solutions Vs Peers

According to the red herring prospectus (RHP), there are no other companies either in India or internationally that operate a similar business at a comparable scale. As a result, it is not possible to draw comparisons with industry peers for this company.

Objective Of Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions IPO, the company itself won't get any money from the sale of shares. All the money raised from selling these shares will go to the promoter who is selling them, after paying for any costs related to the sale and taxes.

Inventurus Knowledge Solutions IPO Details

IPO Date

Inventurus Knowledge Solutions IPO is open to subscription from December 12, 2024, to December 16, 2024. The shares will be allocated to investors on December 17, 2024, and the company will be listed in the NSE and BSE on December 19, 2024.

IPO Issue Price

Inventurus Knowledge Solutions IPO is offering its shares in the price band of Rs.1265 to Rs.1329 per share. This means you would require an investment of Rs.14,619 per lot (11 shares) if you are bidding for the IPO at the upper price band.

IPO Size

The Inventurus Knowledge Solutions IPO is offering a total of 18,795,510 shares, amounting to Rs. 2,497.92 Crores which will be completely offered through an offer for sale.

IPO GMP

Many investors look at the Grey Market Premium (GMP) before applying for Inventurus Knowledge Solutions. The GMP gives an idea of market sentiment and can hint at the possible listing price. However, it should be noted that it does not reflect how financially strong Inventurus Knowledge Solutions is. Thus, it is important to financially analyze the stock before investing in it.

IPO Allotment Status

The shares from Inventurus Knowledge Solutions IPO will be allotted to its investors on December 17,2024. One can check the allotment status for the IPO from its registrar Link Intime India Private Limited, the BSE website, or your broking platform where you have applied for the IPO.

IPO Application Link

Open a demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free. Click on the apply link below to get started.

Apply for Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions IPO Is Good or Bad? Final Thoughts

Inventurus Knowledge Solutions demonstrates strong potential in the healthcare BPO market, with impressive revenue growth from Rs.1,031.30 crores to Rs.1,817.92 crores and strategic global positioning supporting 150,000 clinicians. While the company shows robust returns with 32% ROE, investors should be cautious of declining EBITDA and PAT margins, which have decreased from 34.95% to 28.62% and 29.60% to 20.38% respectively. Therefore, investors should carefully assess the company’s strengths and the risks it entails before considering to invest the IPO