Market cheers for Rekha Jhunjhunwala-backed IPO: Is it a winning bet?
Between FY22 and FY24, the company recorded a Compound Annual Growth Rate (CAGR) of around 54 per cent in revenue and 26 per cent in net profit.
About the issue
Inventurus Knowledge Solutions Ltd is preparing to launch its Initial Public Offering (IPO) for equity shares. Below are the issue details.
| IPO Details |
| IPO Opening Date |
December 12, 2024 |
| IPO Closing Date |
December 16, 2024 |
| Issue Type |
Book Built Issue IPO |
| Face Value |
Re 1 per equity share |
| IPO Price |
Rs 1,265 to Rs 1,329 per equity share |
| Min Order Quantity |
11 shares |
| Listing At |
BSE, NSE |
| Total Issue |
18,795,510 shares of FV Re 1* |
| (Aggregating up to Rs 2,497.92 Cr)* |
| Offer for Sale |
18,795,510 shares of FV Re 1* |
| (Aggregating up to Rs 2,497.92 Cr)* |
| QIB Shares Offered |
75% of the Offer |
| Retail Shares Offered |
10% of the Offer |
| NII (HNI) Shares Offered |
15% of the Offer |
| *At Upper Price Band |
|
Objects of the Issue
Considering that the issue is exclusively an offer for sale, it is crucial to note that the company will not receive any offer proceeds. Instead, all offer proceeds will flow to the selling shareholders, distributed in accordance with the number of offered shares they sell as part of the offer.
Promoter holding
Sachin Gupta, Rekha Jhunjhunwala, Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust and Nishtha Jhunjhunwala Discretionary Trust are the promoters of the company. The promoters and promoter group currently hold a pre-issue shareholding stake of 69.73 per cent in the company.
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Company profile
The company is a technology-driven healthcare solutions provider offering a care enablement platform that supports physician enterprises in the U.S., Canada, and Australia, with a primary focus on the U.S. market.
Amid the evolving and consolidating healthcare industry, the company provides solutions designed to handle administrative tasks, enabling healthcare organisations to concentrate on their core mission of delivering quality care. By managing essential business operations, the company helps its clients navigate the complexities of healthcare delivery.
The company partners with outpatient and inpatient care organizations, helping them deliver superior clinical outcomes, improve population health, transition to a "fee-for-value" model, optimize revenue, and reduce operating costs.
Outpatient services, also known as ambulatory care, include medical care provided without hospital admission, covering observation, consultation, diagnosis, rehabilitation, intervention, and treatment. Inpatient care, in contrast, involves medical treatment requiring hospital admission and an overnight or extended stay.
As of September 30, 2024, the company served 778 healthcare organizations, including prominent clients such as Mass General Brigham Inc., Texas Health Care PLLC, and The GI Alliance Management.
Financials
| Rs (in crore) |
FY22 |
FY23 |
FY24 |
H1FY25 |
| Revenue |
784 |
1,060 |
1,858 |
1,295 |
| Profit before tax |
269 |
359 |
442 |
266 |
| Net Profit |
233 |
305 |
370 |
209 |
The company has consistently delivered robust growth in both revenue and profits over the past few years. Between FY22 and FY24, the company recorded a Compound Annual Growth Rate (CAGR) of around 54 per cent in revenue and 26 per cent in net profit.
When annualized, the figures from the H1FY25 indicate a 39 per cent revenue growth and a 13 per cent surge in net profit compared to FY24. The company delivered a robust return on equity (RoE) of 32 per cent and a return on capital employed (RoCE) of 31 per cent for FY24.
Valuation & Outlook
The issue is priced with a P/BV ratio of 16.04 times, calculated using its Net Asset Value (NAV) of Rs 82.83 as of September 30, 2024. Considering the company's annualized FY25 earnings and fully diluted equity capital, the price-to-earnings (P/E) ratio stands at 54x.
The company stated that no listed companies in India have a business portfolio or operational scale comparable to its own. Hence, a relative comparison is not feasible.
Healthcare expenditure in the U.S. is expected to rise from USD 4,799 billion in 2023 to USD 6,216 billion by 2028, representing a CAGR of 5.3 per cent.
Key trends such as the rise in healthcare consumerism, the adoption of value-based care models, and the growing supply-demand gap among healthcare professionals are anticipated to drive increased demand for enablement platforms. Solutions like those offered by the company’s platform will play a crucial role in helping healthcare organizations address these evolving challenges and priorities effectively.
Given the company's significant market opportunity, strong market presence, and robust financial track record, we recommend investors subscribe to the issue with a long-term investment perspective.