| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 1,265 to ₹ 1,329 | 11 | 12th Dec, 2024 – 16th Dec, 2024 | ₹ 2,497.92 Cr |
About Inventurus Knowledge Solutions Ltd IPO
Inventurus Knowledge Solutions Ltd. (IKSL) is a technology-enabled healthcare solutions provider offering a care enablement platform to assist physician enterprises in the US, Canada, and Australia, focusing on the US markets. The company aims to streamline and expedite patient access to necessary care while alleviating the administrative load on healthcare professionals. The company uses a combination of pragmatic technology and global human capital to enhance healthcare delivery. Its healthcare provider enablement platform helps healthcare providers focus more singularly on their core role of patient care while empowering healthcare organizations to thrive. The company takes on the chores of healthcare, with services spanning administrative, clinical, and operational activities. The company creates value in its client’s business by contributing to the following spaces: 1) Its physician-oriented platform provides clinical documentation solutions, patient scheduling assistance, automated prescription re-fill solutions, clinical document management & data abstraction solutions, clinical data migration solutions, pre-visit summary, and discharge summary. 2) By leveraging technology, the company is able to autonomously complete patient financial clearance, improve clean claim submission to prevent denials, automate payment posting and reconciliation, and reduce inefficiencies in accounts receivables follow-up. 3) Their value-based care solutions help healthcare organizations monitor patient health, identify care gaps, and provide preventive care. They accurately determine patient conditions with HCC coding, enabling appropriate clinical protocols. Their Care Management and Utilization Management solutions aid in executing the right interventions. Additionally, they handle routine administrative tasks, freeing up nurses and medical assistants to focus on patient care, using AssuRx and Stacks solutions. 4) To address the inefficient industry scenario, the company offers a digital health platform that helps its clients build, enhance, maintain, support, and manage their technology systems better. The company generates 97.8% of its revenue from its US-based clients (as of FY24), with 1.5% contributed by Canada and 0.6% by Australia. India and the UK make negligible contributions to their revenue currently. Its top customer contributes 6.7% of the revenue, while the top 5 and top 10 contribute 27.6% and 43.7%, respectively.
Objective of the Inventurus Knowledge Solutions Ltd IPO
The company will not receive any proceeds from the issue as the entire issue is comprised of OFS.
Rationale To Invest In Inventurus Knowledge Solutions Ltd IPO
Poised to drive growth and engagement through comprehensive healthcare solutions
The company provides a comprehensive enablement platform that caters to the needs of a wide spectrum of stakeholders across the value chain under a single platform. With its solutions customised for each client, the company ensures in-depth solutions which has enabled it to maintain healthy, long-standing relationships with its clients. The company has also seen stellar growth in its client base, advancing from 45 clients in FY22 to 853 clients in FY24 (the substantial increase was driven by the acquisition of Aquity Holdings), while as of H1FY25, the base is at 778. The company has also been successful in cross-selling its offering to existing clients, with 48% (as of FY24) of the clients availing more than 4 services. The stickiness in its clientele is also well reflected in revenues from repeat clients of over 90% in the last three fiscals. Going forward, the company aims to target a number of enterprise clients, typically large healthcare organizations with a substantial pool of employed physicians and other physicians. This approach leverages the economies of scale, as the cost of acquiring and servicing large and mid-sized clients, as a percentage of the revenue generated, is lower. IKSL’s strategic plan to acquire Aquity Holding also bore fruit, enabling the company to expand its offerings to the inpatient care business of these networks and large health systems, thereby enhancing the level of stickiness within their existing client base as well. As more hospitals and healthcare organizations seek to merge operations to enhance patient access and expertise while reducing costs, IKSL plans to strategically target health systems, academic medical centres, private equity-funded roll-ups, and other consolidators. IKSL has identified key markets with potential clients that their sales team will actively pursue and leverage cross-selling opportunities, resulting in better deal ramp-ups and healthy revenue visibility.
Automation led leverage to drive margin expansion
IKSL has established itself as a prominent player in leveraging next-generation technologies for digital evolution, transformation, and automation in the healthcare sector. Their comprehensive enablement platform integrates across the financial, operational, and clinical value chains, reducing administrative burdens and enhancing outcomes for healthcare organizations. By leveraging technology solutions that automate clients’ financial and clinical processes (led by the transition from the “human-led tech-enabled” model to a “tech-led human-enabled” model), the company can achieve increased productivity, increased profitability, better employee motivation, and less capital-intensive scalability with non-linear delivery. With further integration of Gen AI in its care enablement platform, the company can optimize and streamline processes, thereby reducing operating costs. The degree of automation that the company can achieve by leveraging Gen AI and digital evolution is likely to be significant, which will be reflected in the margins as increased revenue generation does not involve a correspondingly proportionate increase in manpower and employee costs.
Valuation of Inventurus Knowledge Solutions Ltd IPO
IKSL is a technology-enabled healthcare solutions provider. It offers a comprehensive platform that enables healthcare enterprises in outpatient (ambulatory care) and inpatient (hospital) care. The company is well-positioned to drive growth through its strategic client targeting and cross-selling. Moreover, buoyancy in margins is highly anticipated, fuelled by its automation-led approach, which ensures reduced operational costs and enhanced profitability by optimizing financial and clinical processes. On the economic front, US health expenditure is projected to grow from USD 4,799 billion in 2023 to USD 6,216 billion by 2028, reflecting a CAGR of 5.3%. This growth will be driven by an ageing population and a rise in chronic diseases. The total addressable market for provider enablement technology solutions in the US is expected to reach USD 323 billion by 2028. The growth potential is further driven by the widening supply-demand gap of healthcare professionals, shrinking margins, and an increase in healthcare consumerism. With the company’s scalable platform and layered infrastructure that captures several pain points of healthcare providers, we expect the company to actively capitalize on this growing market opportunity and address the increasing demand for a healthcare provider-enablement platform. The company reported strong financial growth between FY22 and FY24, with a CAGR of 54.3% in revenue, 32.3% in EBITDA, and 26.1% in PAT. For FY24, the EBITDA and PAT margins were 28.6% and 20.4%, respectively, while H1FY25 saw margins of 28.0% and 16.3%, respectively. The attrition rate for H1FY25 stood at 14.45% vs 24.68% in H1FY24. The company is valued at a P/E ratio of 60.0x on the upper price band based on FY24 earnings. With its robust market position and ability to explore untapped opportunities, the company is well-positioned to take advantage of emerging market trends. Therefore, we recommend a “SUBSCRIBE” rating for the issue from a medium to long-term perspective.
What is the Inventurus Knowledge Solutions Ltd IPO?
Inventurus Knowledge Solutions IPO is a book built issue of Rs 2,497.92 crores. The issue is entirely an offer for sale of 1.88 crore shares. Login to your account now.
How to apply for the Inventurus Knowledge Solutions Ltd IPO through StoxBox?
To apply for the Inventurus Knowledge Solutions Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Inventurus Knowledge Solutions Ltd IPO open?
Inventurus Knowledge Solutions Ltd IPO is opening on 12th December 2024. Apply Now
What is the lot size of the Inventurus Knowledge Solutions Ltd IPO?
The Lot Size of Inventurus Knowledge Solutions Ltd IPO is 11 equity shares. Login to your account now
When is the Inventurus Knowledge Solutions Ltd IPO allotment date?
The allotment Date for Inventurus Knowledge Solutions Ltd IPO is 17th December 2024. Login to your account now.
When is the Inventurus Knowledge Solutions Ltd IPO listing date?
The listing Date for Inventurus Knowledge Solutions Ltd IPO is 19th December 2024. Login to your account now
What is the minimum investment required for the Inventurus Knowledge Solutions Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,619. Login to your account now
What is the maximum investment allowed for the Inventurus Knowledge Solutions Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 190,047. Login to your account now
What are the risks associated with investing in the Inventurus Knowledge Solutions Ltd IPO?
- The company is highly susceptible to risks pertaining to geography and sector i.e. it is highly concentrated in the US region focusing only on healthcare.
- The healthcare industry is regulated, and if the company fails to comply with applicable healthcare laws and government regulations, it could incur financial penalties, be required to make significant operational changes or experience adverse publicity.
When will the Inventurus Knowledge Solutions Ltd IPO shares be credited to my Demat account?
The Inventurus Knowledge Solutions Ltd IPO be credited to the account on allotment date which is 18th December 2024. Login to your account now
Where can I find the Inventurus Knowledge Solutions Ltd IPO prospectus?
The prospectus of Inventurus Knowledge Solutions Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Inventurus Knowledge Solutions Ltd IPO?
| IPO Open Date | Thursday, December 12, 2024 |
| IPO Close Date | Monday, December 16, 2024 |
| Basis of Allotment | Tuesday, December 17, 2024 |
| Initiation of Refunds | Wednesday, December 18, 2024 |
| Credit of Shares to Demat | Wednesday, December 18, 2024 |
| Listing Date | Thursday, December 19, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 16, 2024 |
