Innovision IPO: The initial public offering (IPO) of manpower services provider Innovision Ltd enters its third day of the bidding process on Thursday, March 12. Innovision IPO subscription status so far shows a muted demand for the issue amid weak market sentiment.
Innovision IPO opened for public subscription on March 10, and will close on March 12. Innovision IPO allotment date is March 13, and the IPO listing date is March 17. Innovision shares will be listed on BSE and NSE.
Innovision IPO price band is set at ₹521 to ₹548 per share, and the IPO lot size is 27 shares. The company aims to raise ₹322.84 crore from the book-building issue, which is a combination of fresh issue of 46.53 lakh equity shares aggregating to ₹255 crore, and an offer-for-sale (OFS) component of 12.38 lakh shares worth ₹67.84 crore.
The company plans to utilise the net issue proceeds for the repayment of all or certain borrowings, funding working capital requirements and general corporate purposes.
Emkay Global Financial Services Ltd. is the book running lead manager and Kfin Technologies Ltd. is the Innovision IPO registrar.
Innovision IPO Subscription Status
Innovision IPO has been subscribed 12% so far on March 11, the second day of the bidding process. The Retail Individual Investors (RIIs) category has been booked 6%, and the Non Institutional Investors (NII) segment has been subscribed 19%. The Qualified Institutional Buyers (QIBs) category received 96% subscription.
Innovision IPO GMP Today
The trends for Innovision shares in the unlisted market remains bullish with a strong grey market premium. According to experts, Innovision IPO GMP today is ₹71 per share. This indicates that in the grey market, the Innovision shares are trading higher by ₹71 apiece than their issue price.
Innovision IPO GMP today signals that the estimated listing price of the stock would be ₹619 apiece, which is at a premium of nearly 13% to the IPO price of ₹548 per share.
Innovision IPO: Should you apply?
Innovision Ltd is a Gurgaon-based integrated facility management (IFM) company which provides services like Toll Plaza Management, Manpower Services and Skill development training to its clients.
The company demonstrated resilient performance with Revenue, EBITDA and PAT growing at a CAGR of 86.9%, 85.0% and 80.8% between FY23-FY25 to ₹893 crore, ₹49 crore, and ₹29 crore respectively.
“At the upper price band of ₹548, Innovision IPO is valued at a P/E ratio of 32.5x based on its 1HFY26 annualized earnings on post-issue capital. When compared to its peers, the IPO valuations appear to be premium. Furthermore, the company exhibits a significant concentration of business in terms of both clients and geographical regions. It is also facing a considerable number of legal and regulatory challenges, along with debarment notices from some clients,” said SBI Securities.
While growth is strong, the margins are very low and are subject to high employee attrition, the brokerage firm added. Hence, it recommends investors to avoid the issue and monitor the company’s performance after it is listed.
Swastika Investmart noted that Innovision’s RoNW of 35.45% is the highest in the peer group by far (next best is 19%), signaling efficient capital use, partially justifying the premium.
“At 35.69x P/E, Innovision stock is pricing in significant future growth already. Given thin margins (~5.78% EBITDA) and a commoditized manpower/ toll services business, this valuation leaves limited margin of safety. Long-term upside at this price needs consistent margin expansion to play out. Not a strong conviction long-term hold at this valuation unless margins show a clear upward trajectory in coming quarters,” said Swastika Investmart.
The brokerage firm has issued ‘Avoid’ rating to Innovision IPO.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
