IKS Health IPO Details and GMP

IKS Health IPO Summary

Mark your calendars! IKS Health aka Inventurus Knowledge Solutions IPO is opening for bids this Thursday, 12^th Dec 24 and closing on Monday, 16^th Dec 2024. Looking to Invest Early. Anchor Investor can apply on Tuesday, 10^th Dec 2024. The price band per share is set between ₹1265 and ₹1329 per equity share of the face value of ₹1. IKS Health IPO is a book-built issue of Rs 2497.92.00 crores. The issue is entirely an Offer for sale of 1.88 crore shares. Just a heads up, you’ll need to invest with a minimum of 11 shares for ₹14,690 and in multiples of 11 equity shares thereafter. The floor price is 1265 times of the face value of the equity shares and the cap price is 1329 times the face value of the equity share. The allotment for the IKS Health IPO is finalized on Tuesday, December 17, 2024. IKS Health IPO will list on BSE, NSE with tentative listing date fixed as Thursday, December 19, 2024.

IKS Health IPO price band is set at ₹1265 to ₹1329 per share. The minimum lot size for an application is 11 Shares. The minimum amount of investment required by retail investors is ₹14,690. The minimum lot size investment for sNII is 14 lots (154 shares), amounting to ₹204,666 and for bNII, it is 69 lots (759 shares), amounting to ₹1,008,711.

IKS Health IPO Quota Allocation

IKS Health ‘s IPO offering will be distributed as follows:

• Up to 75% of the shares will be allocated to Qualified Institutional Buyers (QIBs). These are institutional investors such as banks, mutual funds, and insurance companies.
• A minimum of 15% of the shares will be reserved for Non-Institutional Investors (NII). These typically include high-net-worth individuals (HNIs) or corporate bodies investing more than ₹2 lakh.
• At least 10% of the offering will be available for retail investors. These are individual investors applying for shares with a total value of less than ₹2 lakh.

The allotment of shares for the IKS Health IPO is expected to be finalized on Tuesday, 17^th Dec 24. Following this, the company will initiate refunds for unsuccessful applicants on Wednesday, 18^th Dec 2024. If your application is successful, the shares are expected to be credited to your demat account on the same day, 18^th Dec 2024, after the refunds are processed. IKS Health IPO listing on the BSE and NSE is tentatively scheduled for Thursday, 19^th Dec 2024.

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,790.52	3,027.52	988.31	787.52
Revenue	1,294.61	1,857.94	1,060.16	784.47
Profit After Tax	208.58	370.49	305.23	232.97
Net Worth	1,377.11	1,157.86	828.64	647.07
Reserves and Surplus	1,360.17	1,140.94	811.80	630.26
Total Borrowing	828.63	1,193.42

 Amount in Rs. Crore.

IKS Health IPO GMP, Grey Market Premium 2024

IKS Health IPO GMP as of 15^th Dec 2024 is 405. Stay tuned for the latest IPO GMP numbers of IKS Health IPO.

IKS Health IPO GMP Date	GMP	IPO Price	Expected Listing Gain
GMP is as on 08 Dec 2024.	225	1329.00	1554 (16.93%)
GMP is as on 09 Dec 2024.	350	1329.00	1679 (26.33%)
GMP is as on 10 Dec 2024.	350	1329.00	1679 (26.33)
GMP is as on 11 Dec 2024.	422	1329.00	1751 (31.75%)
GMP is as on 12 Dec 2024.	375	1329.00	1704 (28.22%)
GMP is as on 13 Dec 2024.	375	1329.00	1704 (28.22%)
GMP is as on 15 Dec 2024.	405	1329.00	1734 (30.47%)
GMP is as on 16 Dec 2024.

IKS Health IPO subscription status

As 13 Dec 2024, 6:00 PM, the book build issue had been booked 2.58 times, the Employee portion of the public offer had been booked 1.86 times, the retail portion of the public offer had been booked 4.10 times, and the NII segment had been subscribed 2.96 times and the Qualified Institutional Buyer segment has been subscribed 1.89 times.

About IKS Health: A Leading Healthcare Enterprises.

IKS Health presents a uniquely positioned and comprehensive suite of healthcare solutions that span the entire value chain, distinguishing itself from other players in the sector. Unlike organizations that focus on standalone services such as revenue cycle management, transcription, or coding, IKS offers a diversified portfolio of integrated solutions. The company’s offerings appear to cover a wide range of services including population health management, virtual scribing, revenue cycle management, and technology-enabled solutions. What sets IKS apart is its holistic approach to healthcare services, combining clinical, operational, and financial aspects into a cohesive ecosystem. This integrated model allows IKS to address multiple pain points for healthcare providers simultaneously, potentially improving overall efficiency and patient care quality.

As of September 30, 2024, IKS have 778 healthcare organizations as our clients, including health systems, academic medical centres, multi-specialty medical groups, single-specialty medical groups, ancillary healthcare organizations and other outpatient and inpatient healthcare delivery organizations. Some of IKS key clients include Mass General Brigham Inc., Texas Health Care PLLC, and The GI Alliance Management. IKS serve our clients through our consolidated globalized workforce of over 13,528 employees, including 2,612 clinically-trained employees and a consultative sales force with presence in key geographies in the US, Canada and Australia, as of 202 September 30, 2024.

IKS Health ’s Product Applications

Healthcare technology providers are developing a suite of products and services that span the entire healthcare value stream, focusing on provider enablement. These solutions address key areas crucial for modern healthcare delivery: Revenue Cycle Management, Clinical Documentation, Patient Engagement and Care Coordination, Data Management, Analytics, and Technology Workflow Optimizations.

• Revenue Cycle Management solutions include Patient Access Solutions, Denials Management, Billing and Collections, and Contract Administration. These services aim to optimize the financial aspects of healthcare operations, ensuring efficient revenue capture and management throughout the patient care journey.
• Coding includes Medical Coding to help healthcare providers accurately document patient diagnoses and treatments, ensuring proper billing and efficient healthcare management.
• Scribe and Medical Transcription solutions encompass Virtual Scribing, and Medical Transcription, designed to streamline clinical workflows, improve documentation accuracy, and reduce administrative burdens on healthcare providers.
• Clinical Services include Referral Management, Clinical Chart Review, Utilization Management, Medico legal document preparation and Medication Renewal. These services help healthcare organizations optimize patient care, manage chronic conditions, and meet quality metrics essential for value-based care models.
• Value based Care solutions encompass a wide range of offerings designed to enhance healthcare operations and patient care. These include HCC Coding, Population Health Management, and Provider Workflow Optimizations such as Clinical Chart Reviews.

By offering integrated solutions across these domains, tech providers aim to empower healthcare organizations to enhance operational efficiency, improve patient outcomes, and navigate the complex landscape of healthcare delivery and reimbursement.

When assessing the competitive landscape, it becomes clear that many other players have limited range of services when compared to IKS Health in the technology-enabled healthcare provider space. For instance, R1 RCM’s service portfolio is predominantly focused on Revenue Cycle Management. Augmedix, on the other hand, concentrates primarily on Clinical Documentation with services such as Virtual Scribing and Medical Transcription but does not extend into Revenue Cycle Management or Value based care. Similarly, Health Catalyst leverages its Data Management and Analytics platform to provide services across revenue cycle management and value-based care but does not offer services in Scribe and has low coverage in areas like Clinical document preparation. CareCloud, despite offering a variety of services in Revenue Cycle Management and Value based care, still falls short of the extensive range of offerings provided by IKS Health, particularly in Clinical Documentation. Likewise, Sagility’s RCM offerings do intersect with IKS Health’s services. However, the healthcare SagilitySprovider segment contributes to less than 10% of Sagility’s total revenue, as their main focus remains on the payer segment.

IKS Health Profit Growth

Based on its restated consolidated financial statements, IKS Health has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 763.63 crore in FY22 to Rs 1,031.3 crore in FY23 to Rs 1,817.93 crore in FY24. PAT increased from Rs 232.97 crore in FY22, to Rs 305.23 crore in FY23 to Rs 370.49 crore in FY24.

IKS Health ’s Pros & Cons

1.    Pros

• As of September 30, 2024, IKS served 778 healthcare organisations, including health systems, academic medical centres, multi-speciality and single-speciality medical groups, ancillary healthcare providers, and various outpatient and inpatient care organisations.
• IKS’ client base includes notable organisations such as Atlanta Women’s Health Group, Boston Children’s Health Physicians, Hanger Inc., US Digestive Health (GI MSO Inc.), Lehigh Valley Health Network, Lightbeam Health Solutions, Mass General Brigham, MRPG, Professional Occupational and Physical Therapy, Sema4, Spear Physical Therapy, Texas Health Care PLLC, The GI Alliance Management, Duke Health, McLaren, Maxim Health Services, Providence, and Thundermist Health Centre.
• IKS offers a digital health platform designed to help clients optimise their technology systems. Its Unifying Data Platform (UDP) enables the integration of data from multiple sources, including billing systems, electronic health records (EHRs), and clearinghouses, into a centralised database. This eliminates the need for EHR or billing system migrations and reduces capital expenditure, providing clients with streamlined access to actionable insights for effective decision-making.
• With the acquisition of Aquity Holdings on October 27, 2023, IKS expanded its capabilities in clinical documentation, medical coding, and revenue integrity solutions. This acquisition allows IKS to cross-sell its solutions to Aquity’s existing customer base of over 804 healthcare organisations (as of March 31, 2024), significantly broadening its market opportunities.
• IKS delivers innovative proprietary platforms that enhance healthcare operations: like IKS EVE (a multi-channel patient access and engagement solution.), Optimix (a workflow management platform focused on revenue optimisation), IKS Stacks (a platform that uses OCR, NLP, and proprietary algorithms to extract data from clinical documents), IKS AssuRx (a prescription renewal processing engine that aggregates and handles requests seamlessly), and IKS Scribble (a solution combining automation, Al, and human expertise to create medical notes for physicians).
• IKS states that the company leverages RPA to automate repetitive and structured tasks within virtual environments. This includes routine payer interactions, claims rebilling, eligibility inquiries, and claim status tracking through payer websites. These automated processes increase efficiency and reduce operational burdens for healthcare organisations.
• The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 763.63 crore in FY22 to Rs 1,031.3 crore in FY23 to Rs 1,817.93 crore in FY24. PAT increased from Rs 232.97 crore in FY22, to Rs 305.23 crore in FY23 to Rs 370.49 crore in FY24.

2.    Cons

• IKS is currently involved in certain legal proceedings. Any adverse judgments in any of the cases could be detrimental to the company’s business prospects.
• IKS’ success depends on its ability to develop and launch new solutions based on artificial intelligence (AI) and machine learning (ML). If the company fails to enhance existing offerings such as Al-powered speech-to-text solutions, there could be a negative impact on its revenues, operational results, and market reputation.
• IKS operates in the highly competitive US healthcare market where balancing quality care and cost efficiency poses challenges. Additionally, the consolidation of healthcare organisations in the US may affect its business performance and financial stability.
• IKS’ revenue depends on its ability to retain existing clients and attract new ones. As of September 30, 2024, the company had 778 clients contributing Rs 1,282.88 crore in revenue. In prior years, IKS had 853 clients in FY24 contributing Rs 1,817.93 crore, 49 clients in FY23 contributing Rs 1,031.3 crore, and 45 clients in FY22 contributing Rs 763.63 crore. The loss of one or more major clients could significantly affect IKS’ financial condition and operations
• A large portion of IKS’ revenue is generated from healthcare organisations in the United States. US clients contributed Rs 649.30 crore (99.94%) in the six months ended September 30, 2024, and Rs 1,265.94 crore (99.94%), Rs 1,054.97 crore (99.93%), and Rs 744.58 crore (99.91%) to the company’s revenue from operations in FY24, FY23, and FY22, respectively. Any adverse developments in the US healthcare sector or any political, social, or economic disruptions could harm the company’s operations and finances.
• IKS generates a significant portion of its revenue from a small number of clients. The top 10 customers contributed Rs 441.20 crore (34.39%) in the six months ending September 30, 2024, and Rs 793.65 crore (43.66%), Rs 691.87 crore (67.09%), and Rs 520.50 crore (68.16%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any loss of these major clients or a reduction in business from them could hurt the company’s revenue generation capabilities.
• A large portion of IKS’ revenue is generated through its subsidiaries, particularly IKS Inc. and Aquity Solutions, LLC, which together accounted for over 27% of revenue in fiscal 2024. Any financial instability or legal restrictions affecting these subsidiaries could adversely impact IKS’ revenue and financial condition.
• As of September 30, 2024, IKS had total outstanding borrowings of Rs 835.85 crore. Any inability to repay or service these loans could harm the company’s financial position.

Overall, IKS Health ‘s IPO presents an opportunity for investors to participate in the growth of the Indian Healthcare market. However, it is important to weigh the risks and consider the company’s financial performance and competitive landscape before making an investment decision.

Frequently Asked Questions

Disclaimer

The information provided in this article about the IKS Health IPO is for informational purposes only and does not constitute financial advice. Finance Gurukul does not recommend investing in any specific securities or investment strategies. It is important to conduct your own research and due diligence, and to consult with a qualified financial advisor before making any investment decisions.

Investing in the stock market involves inherent risks, and investors may lose some or all of their invested capital. Past performance is not necessarily indicative of future results.