The Rs 323-crore Innovision IPO has entered its second day of bidding. Grey market signals remain weak, with the IPO currently showing a grey market premium (GMP) of around 0%, indicating expectations of a flat listing. At the upper end of the price band, Innovision’s pre-IPO market capitalisation is estimated at about Rs 1,291 crore.
The IPO opened for subscription on March 10, with the manpower and toll management services provider looking to raise about Rs 323 crore through the public issue. The offering includes a fresh issue of Rs 255 crore and an offer for sale (OFS) worth Rs 68 crore. Shares are priced in the Rs 521 to Rs 548 per share band, with a lot size of 27 shares. The company plans to list its shares on both the BSE and NSE.
The issue will remain open until March 12. The basis of allotment is likely to be finalised on March 13, with shares expected to be credited to investors’ demat accounts by March 16. The tentative listing date is March 17.
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Innovision IPO subscription status
On Day 1, the Innovision IPO was subscribed 2% overall, according to data from the BSE.
Retail Individual Investors (RIIs) subscribed 2% of their allotted 39.86 lakh shares.Non-Institutional Investors (NIIs) had not placed any bids yet for their 20.85 lakh shares on offer.
Qualified Institutional Buyers (QIBs) showed comparatively stronger participation, subscribing 96% of their allocated 61,323 shares.
Innovision business profile
Innovision offers manpower services, toll plaza management and skill development training to clients across India. The company began its operations by providing manned private security services and later expanded into broader manpower solutions. It entered the skill development segment in FY14 and started toll management services in FY19.
Currently, Innovision operates in 23 states and five Union Territories, delivering outsourced workforce solutions and operational support to enterprises as well as infrastructure operators. Its revenue is largely generated through service contracts and long term operational agreements.
Financial performance
Innovision has recorded strong growth in recent years. Its revenue rose to Rs 896 crore in FY25, compared with Rs 512 crore in FY24 and Rs 258 crore in FY23. Profit after tax increased to Rs 29 crore in FY25, up from Rs 10 crore in FY24 and Rs 9 crore in FY23. However, profitability margins remain relatively modest, with an EBITDA margin of 5.78% in FY25.
The company reported a Return on Net Worth (RoNW) of 35.45%, one of the highest among its peers, reflecting efficient use of capital.
Proceeds from the fresh issue will primarily be used to repay or prepay certain borrowings, meet working capital requirements and support general corporate purposes.
Should you subscribe?
Brokerage Swastika Investmart has recommended avoiding the issue, citing concerns around valuation and business margins.
“RoNW of 35.45% is the highest in the peer group by far, which signals efficient capital use and partly justifies the premium. However, at 35.69x P/E the stock is already pricing in significant future growth,” the brokerage said in its note.
It added that the company operates in a manpower intensive and relatively commoditised services business, where margins remain thin.
“Given the modest EBITDA margin of around 5.78%, the valuation leaves limited margin of safety. Long term upside at this price would require consistent margin expansion in coming quarters,” the brokerage said.
The brokerage concluded that the IPO may not be a strong long term hold at current valuations unless the company demonstrates a clear improvement in margins.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)