1 week Ago
IPO Review: A number of initial public offerings have entered the primary market this week, including the Vishal Mega Mart IPO, Sai Life Sciences IPO, and One Mobikwik Systems IPO, all of which are closing today. Each of these offerings has been fully subscribed, with the Mobikwik IPO outperforming the others. Investors who are still considering their options might want to look into the Inventurus Knowledge Solutions IPO (IKS Health IPO), which opened yesterday (Thursday, December 12), as well as the International Gemmological Institute IPO (IGI IPO), which started today (Friday, December 13).
The IPO of Inventurus Knowledge Solutions consists entirely of an Offer For Sale (OFS) of 1.88 crore equity shares by its promoters and individual shareholders, with no portion allocated for a fresh issue. In contrast, the IGI IPO includes both a fresh equity share issue amounting to ₹ 1,475 crore and an Offer For Sale (OFS) worth ₹ 2,750 crore from the promoter BCP Asia II TopCo Pte Ltd, which is associated with Blackstone.
po According to market analysts, the objective when applying for an IPO should extend beyond merely aiming for listing gains. It is essential to prioritize obtaining share allotments, as one can only realize listing gains if they possess the shares of the IPO in their demat accounts. When multiple IPOs are available, it becomes crucial to select them judiciously.
For example, there are currently five IPOs on the market, with Mobikwik and Vishal Mega Mart attracting significant attention, leading many investors to focus their resources on these two while overlooking the other three. Furthermore, experts recommend that investors consider both the size of the IPO and the company's financial performance. The International Gemmological Institute IPO, which launched today, showcases robust financials.
For the nine-month period ending September 2024, IGI India reported revenues of ₹ 788.16 crore and a net profit of ₹ 316.83 crore.
While there is excitement surrounding the Mobikwik IPO, the company disclosed a consolidated net loss of ₹ 6.62 crore and operational income of ₹ 342.27 crore for the quarter ending on 30 June 2024, according to analysts.
Consequently, 40% should reflect the likelihood of acquiring the shares, and 60% should focus on profitability. Here's what experts say - IKS Health IPO versus IGI IPO One can pick and choose where one wants to invest Arun Kejriwal, the founder of Kejriwal Research and Investment Services, emphasized that these two companies cannot be compared in detail; one operates in the healthcare sector while the other is involved in the testing of precious stones, making it inappropriate to draw comparisons between them. Arun Kejriwal mentioned that IKS Health focuses on offering administrative services to healthcare providers, primarily in the United States.
After consulting with patients regarding their prescriptions or health conditions, doctors have a significant amount of documentation to complete; without this paperwork, the US healthcare system does not support either the doctor or the patient. Therefore, the company facilitates this entire process by handling the necessary documentation. Additionally, they have a group of medical professionals who support doctors in completing all mandatory paperwork.
Kejriwal further elaborated that the International Gemmological Institute assesses diamonds, whether they are natural or lab-created, along with other precious stones and jewelry, providing certification for anything tested by them. An important aspect of this organization is that they were pioneers in the lab-grown diamond sector. Prior to them, there weren't any reputable entities certifying lab-grown diamonds.
The lab-grown diamond market has expanded significantly over the past three to four years, which is reflected in the company's revenue. For them, testing a stone is just like testing any other stone. They see no distinction; nonetheless, they offer lower prices for lab-grown diamonds because their worth is considerably less than that of natural diamonds.
India has emerged as a major hub for lab-grown diamonds. Previously, India was primarily a center for cutting and polishing natural stones. In a typical stone's process, 15% of the value is added through cutting and polishing.
However, for lab-grown diamonds, 100% of the process occurs in India since they are produced, cut, and polished here. Some of these are exported globally, while others are crafted into jewellery before export. Additionally, lab-grown diamond jewellery is also being sold domestically.
This is a rapidly expanding market that is significantly increasing profit margins. In the second option, there is no rivalry, and it provides potential for value increase, while the first option, despite being oversubscribed, appears somewhat pricey and is not considered affordable. Additionally, you have a selection of five companies, allowing you to select where you prefer to invest, added Arun Kejriwal .
Long term view According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities , both IPO offers are unique in their business model and in high growth space, Inventurus Knowledge Solutions (IKS) is a prominent technology-driven healthcare solutions provider across the US, Canada, and Australia which has expertise in integrating solutions across revenue optimization, clinical support, digital health, and EHR migrations positions it as a preferred partner in the healthcare ecosystem. While the second one International Gemmological (IGI), is a leading reputed certifier in the global market with holding lion market share in India in terms of number of certifications of diamonds, studded jewellery and coloured stones. In terms of financials and valuations, both the offers seem to be fully priced looking at the company’s financial growth trajectory.
Confederating all the factors. “We believe Inventurus Knowledge Solutions Ltd (IKS) is well-positioned to capitalize on the growing demand for integrated healthcare solutions and recommend investors to “SUBSCRIBE” the Inventurus Knowledge Solutions Ltd IPO for long term perspective and IGI is into a niche segment of certifying gem and jewellery segment which holds bright a prospects as it is enjoying the lion share in global diamond polishing and related matters and hence we recommend investors to “SUBSCRIBE” even this IPO for long term only. We are positive on both the offers with a Long term view,” added Tapse.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions..
