ET Intelligence Group: Rakesh Jhunjhunwala family-promoted Inventurus Knowledge Solutions (IKS Health) is a tech-enabled healthcare provider enablement platform serving the United States healthcare market that has an annual spending of $4.8 trillion. It is rolling out an offer for sale of ₹2,498 crore that dilutes the promoter holding from 69.7% to 65.8%. Since it is an offer for sale, the proceeds of the issue are not coming into the company.Business: Incorporated in 2006, Navi Mumbai-based IKS Health provides a 24x7 comprehensive suite of solutions spanning the entire healthcare value chain assisting physician enterprises predominantly in the US. At the end of September 2024, it had over 775 healthcare organisations as clients. Around 94% of revenues are earned from repeat customers.Last October, the company acquired Aquity Holdings, an American firm engaged in tech-enabled clinical documentation, medical coding and revenue integrity solutions for healthcare. The acquisition enabled IKS Health to add over 800 clients and the opportunity to cross-sell to the newly acquired ones. IKS now has a globalised workforce of over 13,528 employees including 2,612 clinically trained employees and a market presence in the US, Canada and Australia.116231465Financials & Growth Prospects: The company's revenues grew at a CAGR of 54.3% from ₹764 crore in FY22 to ₹1,818 crore in FY24. The net profit rose at a CAGR of 26% to ₹370 crore in FY24. The Ebitda margin for FY24 stood at 28.6% with ROCE at 31.5%.The US healthcare market has an annual spending of $4.8 trillion with the outsourced market size topping $34 billion and estimated to grow at a CAGR of 12% over 2023-2028. Complex regulatory requirements, increased administrative burden on the physicians, high attrition of healthcare workers, shift to AI-driven automation and focus on reducing operating costs are the broad trends driving outsourcing of administrative operations in healthcare.Valuations & Risk Factors: At an implied market cap of around ₹22,802 crore, the IPO values the company at 53.8 times its annualised earnings for FY25. While IKS has no listed peer in India, a comparison with mid-sized IT companies shows that the issue has been aggressively priced for the scale of the business. Investors interested in partaking in the growth opportunity of outsourcing related to the world's largest healthcare market may consider investing in the issue with a long-term horizon.