Inventurus  Knowledge Solutions IPO Vs Yash High voltage IPO: Which IPO is best to apply today?

The IPO market is buzzing with opportunities, and two more public issues are up for grabs- Inventurus Knowledge Solutions and Yash Highvoltage . While both have garnered attention, they differ significantly in terms of size, sector, and market platform with one being a mainboard powerhouse, and the other being a rising star in the electrical sector.

Let’s break it down and see which one is the better bet on:

Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions is making its debut on the mainboard, aiming to raise up to Rs 2,498 crore. The company specialises in tech driven healthcare solutions and serves physician enterprises across the US, Canada, and Australia, primarily focusing on the US market.

The IPO offers an Offer for Sale (OFS), which includes 18.8 million equity shares, without any fresh issue component. The price band for the public offering is set at Rs 1,265 to 1,329 per share.

Furthermore, it is also noteworthy that this IPO is backed by Rekha Jhunjhunwala, and prior to the opening of the issue, the company raised Rs 1,120.18 crore from anchor investors.

At the upper end of the price band, this offering will give Inventurus a market cap of Rs 22,800 crore, which places it among the larger, established players.

Also read: Mobikwik IPO GMP rises over 17% in 6 days; issue subscribed over 11 times

The company is solidly backed by prominent investors and boasts a stable business model focused on healthcare, making it an attractive option for those seeking long-term growth in the tech-healthcare space.

As per recent trends, the grey market premium (GMP) for this IPO stands at Rs 422, pointing out an estimated listing price of Rs 1,751, which reflects a 31.75 per cent premium.

Yash Highvoltage IPO

On the other side, Yash Highvoltage Ltd, an SME IPO, is raising Rs 110.01 crore from the market.

The company operated in manufacturing electrical transformer bushings, including types such as Oil Impregnated Paper (OIP) and Resin Impregnated Paper (RIP).

Yash Highvoltage IPO opened for subscription today. Coming to the size, the issue targets smaller institutional investors and retail investors through the BSE SME platform.

Yash Highvoltage’s shares are priced between Rs 138 and Rs 146, with a lot size of 1,000 shares.

The grey market premium (GMP) for this IPO is currently at Rs 130, with an estimated listing price of Rs 276, reflecting a premium of 89.04 per cent, as the recent trends.

The company intends to use the funds raised for setting up a new factory and for general corporate purposes, which suggests that the growth potential is there. However, the smaller scale and niche market of the company, compared to the broader healthcare tech sector of Inventurus, makes this a more speculative investment.

Inventurus Knowledge Ventures Vs Yash High Voltage: Which IPO is best to buy?

Inventurus Knowledge Solutions IPO is a much larger offering with a track record in the healthcare industry. Meanwhile, Yash Highvoltage IPO is a smaller SME IPO aimed at retail investors and will be listed on the BSE SME platform.

The mainboard Inventurus Knowledge Solutions IPO provides an easier access for institutional investors and large-scale investors, which often means more liquidity and potentially less volatility. The SME IPO, Yash Highvoltage will operate in a space reserved for small and medium-sized enterprises, offering a higher risk, higher reward profile. SME IPOs tend to see more fluctuations due to their limited market size.

“We intend to utilize a portion of the Net proceeds for setting up the Proposed Manufacturing Facility at Plot 32-A, Suncity Industrial Park, Savli, Vadodara, Gujarat. We are yet to place orders for plant, machinery and equipment and
apply for requisite government approvals for the Proposed Manufacturing Facility. If we are unable to commission our Proposed Manufacturing Facility without time and cost overruns or unable to adhere to the schedule of implementation, it may adversely affect our business, results of operations and financial conditions,” added Yash Highvoltage in the risk disclosure.

Inventurus position in the growing healthcare tech sector and considering its backing by prominent investors looks a more stable option. However, Yash Highvoltage IPO may offer higher potential returns in the short term, given its smaller size and the fact that it is riding a wave of demand for its IPO in the grey market.

“At the upper price band of Rs.1329, IKSL is available at a P/E of 54.6x (on FY25 Annualised), which appears fairly priced. Considering its asset light and scalable model with high margin operations, diversified product offerings, significant expansion potential post acquiring Aquity Holdings, we recommend Sub-scribe rating to the issue on a medium to long term basis,” added Geojit Financial Service in IPO note.

“When annualizing the FY25 earnings to the post-IPO fully diluted equity capital, the asking price corresponds to a P/E ratio of 54.67. Based on FY24 earnings, the P/E ratio is 61.56, indicating the issue is fully priced,” said Bajaj Broking in IPO note.

Both IPOs present opportunities, but your choice should ultimately depend on your investment goals, risk tolerance, and timeline.