Grey market trends indicate muted investor sentiment so far, with the IPO commanding a grey market premium (GMP) of around 0%, suggesting a flat listing expectation. At the upper end of the price band, Innovision is expected to command a pre-IPO market cap of about Rs 1,291 crore.
The IPO will close on March 12. The basis of allotment is expected to be finalised on March 13, with shares likely to be credited to investors’ demat accounts on March 16 and the tentative listing scheduled for March 17.
Business profile
Innovision provides manpower services, toll plaza management and skill development training to clients across India. The company initially started with manned private security services before expanding into broader manpower solutions, skill development from FY14 and toll management services from FY19.
The company currently operates across 23 states and five union territories, offering outsourced workforce solutions and operational services to enterprises and infrastructure operators.
Revenue is generated primarily through service contracts and long-term operational engagements.
Financial performance
Innovision has posted strong growth in recent years. Revenue increased to Rs 896 crore in FY25 from Rs 512 crore in FY24 and Rs 258 crore in FY23. Profit after tax rose to Rs 29 crore in FY25 from Rs 10 crore in FY24 and Rs 9 crore in FY23. However, margins remain relatively thin, with EBITDA margin at 5.78% in FY25.
The company reported a return on net worth (RoNW) of 35.45%, which is among the highest in its peer group, indicating efficient capital utilisation.
Proceeds from the fresh issue will be used to repay or prepay certain borrowings, fund working capital requirements and meet 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.