Jhunjhunwala family-backed IKS Health IPO — Should you subscribe or avoid? – CNBC TV18
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The issue is priced betwen ₹1,265 – ₹1,329 per share.
The entire ₹2,500 crore issue is an Offer For Sale (OFS), which means the company will not receive any proceeds from the transaction.
Ashra Family Trust (Promoter) , Aryaman Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust, Nishtha Jhunjhunwala Discretionary Trust are some of the selling shareholders in the IPO.
The late Rakesh Jhunjhunwala had bought a stake in Inventurus Knowledge Solutions back in 2007 for $5.5 million, when the company was a start-up BPO (Business Processing Organisation).
So what should investors do with the ₹2,500 crore issue? Should one subscribe or is the IPO an avoid? Here is what analysts had to say:
Ajcon Global has recommended a “subscribe” rating for the IPO.
It said that the acquisition of Aquity Holdings will expand the company’s service portfolio and geographical footprint.
SBI Caps also has a “subscribe” recommendation at the cut-off price.
It believes that its growth potential will be driven by the widening supply-demand gap of healthcare professionals, shrinking margins, adoption of value-based care and increase in healthcare consumerism.
However, any developments from the ongoing litigations against the company could turn out to be a possible painpoint in the future, the brokerage said.
KRChoksey Research also has a “subscribe” rating to the IPO.
At the upper end of the price band of ₹1,329, the company is valued at a price-to-earnings multiple of 61.6 times, which KRChoksey finds “attractive.”
The company’s strong fundamentals, scalable solutions and alignment with evolving healthcare needs, position it as a growth-focused and sustainable investment, the brokerage said.
The issue will close for subscription on Monday, December 16.
