Inventurus Knowledge Solutions IPO opens on December 12: Check price band, business model, key dates and more

The initial public offering (IPO) of Inventurus Knowledge Solutions Ltd, a company backed by late ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala, opens for subscription this week on December 12.

The mainboard issue will close for bidding on December 16. The company on Monday announced the price band for its IPO at ₹1,265 to ₹1,329 per share. The minimum lot size for an application by retail investors is 11 shares.

The company aims to raise ₹2,497.92 crore via its initial public offering. The mainboard IPO is entirely an offer-for-sale (OFS) of 1.88 crore shares.

The retail investors need to apply for at least a single lot size of 11 shares, amounting to an investment of ₹14,619 per application.

The IPO share allotment status is scheduled to be finalised on December 17, while the refunds and transfer of shares to the Demat accounts will be done on December 18.

The stock is expected to be listed on both the BSE and the National Stock Exchange of India (NSE) on December 19.

If you are planning to invest in the Inventurus Knowledge Solutions IPO, here are some key details you should know about the company.

Business model

Inventurus Knowledge Solutions is a technology-enabled healthcare solutions provider. It was founded in 2006 with the goal of addressing the financial, clinical and operational needs of the United States-based healthcare organisations.

Currently, it offers a care enablement platform assisting physician enterprises in the US, Canada and Australia, with prime focus on the US markets.

The company is a partner for outpatient and inpatient care organisations, enabling healthcare organisations to deliver superior clinical care and to improve population health outcomes. The company also helps its clients in transition to the ‘fee for value’ model while optimising their revenue and reducing operating costs.

As of September 30, 2024, Inventurus Knowledge Solutions had 778 healthcare organisations as its clients, including health systems, academic medical centres, multi-specialty medical groups, single-specialty medical groups, ancillary healthcare organisations and other outpatient and inpatient healthcare delivery entities.

Some of its key clients include Mass General Brigham Inc., Texas Health Care PLLC and The GI Alliance Management.

Inventurus Knowledge Solutions: Strengths and Weaknesses

Strengths

• In terms of operations, the company is a comprehensive one-stop platform with diversified offerings across the outpatient and inpatient care value chain serving key stakeholders such as patients, physicians, nurses and healthcare organisations.
• The company has shown healthy financial performance since inception, and has posted strong revenue growth and improving margins in the last three financial years.
• The business is not capital intensive and the company’s profitability is driven by an asset-light and scalable model with cost-efficient strategies.

Weaknesses

• There have been certain FEMA (Foreign Exchange Management Act)-related deficiencies in compliances in the past by the company. It has filed compounding applications with the Reserve Bank of India (RBI) in respect of such contraventions, which are currently pending. Consequently, it may be subject to regulatory actions and penalties going ahead.
• The healthcare industry is regulated and if the company fails to comply with applicable healthcare laws and government regulations, it may incur financial penalties, or could be required to make significant operational changes or experience adverse publicity, which could harm its business.
• The company’s business is primarily dependent on revenue generated from healthcare organisations based in the US, and as a result, it is subject to the risks of sector and geographic concentration.

Key competitors

Inventurus Knowledge Solutions competes with specialised healthcare IT vendors, EHR (electronic health record) companies expanding their service offerings, and big tech firms entering the healthcare space.

Also, the company believes that its competitors may be more well-established than they are, enjoying certain tax incentives or by private not-for-profit entities supported by endowments and charitable contributions, which can finance capital expenditures on a tax-exempt basis, according to the Red Herring Prospectus.

Key Financials