Innovision IPO Day 6: Issue booked 1.48x so far, price band cut to ₹494-519. GMP hints 5% listing pop. Apply or skip?

The public offering for Innovision Ltd, which specializes in manpower and toll plaza management services, has been extended to March 17, and the price band has been decreased due to a tepid response from investors.

Initially, the IPO was scheduled to close on March 12. The revised price band is now set at ₹494 to ₹519 per share, down from the earlier range of ₹521 to ₹548 per share. This updated price band will come into effect on March 13, as indicated.

Innovision IPO has reserved not more than 1% of the shares in the public issue for qualified institutional buyers (QIB), not less than 34% for non-institutional Institutional Investors (NII), and not less than 65% of the offer is reserved for retail investors.'

Tentatively, Innovision IPO basis of allotment of shares will be finalised on Wednesday, March 18 and the company will initiate refunds on Thursday, March 19, while the shares will be credited to the demat account of allottees on the same day following refund. Innovision share price is likely to be listed on BSE and NSE on Friday, March 20.

Innovision IPO GMP today

Innovision IPO GMP today is +26. Considering the upper end of Innovision IPO price band and the current premium in the grey market, the estimated listing price of Innovision share price was indicated at ₹545 apiece, which is 5.01% higher than the IPO price of ₹519.

According to the grey market trends observed over the past 14 sessions, the current GMP ( ₹26) indicates a downward trend. The minimum GMP recorded is ₹0.00, while the maximum is ₹66, as per expert opinions.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Innovision IPO subscription status

Innovision IPO subscription status was 1.20x on day 5, so far. The retail portion is subscribed 28%, and NII portion has been booked 2.63x, Qualified Institutional Buyers (QIBs) portion received 12.58x bids.

The company has received bids for 76,91,382 shares against 63,99,943 shares on offer, at 17:00 IST, according to data on BSE.

Innovision IPO subscription status was 30% on day 4.

Innovision IPO details

At the upper end of the price band, Innovision aims to secure ₹322.84 crore, which includes a fresh issuance of ₹255 crore and an offer-for-sale of 12.38 lakh equity shares. Of the funds obtained from the new issue, ₹51 crore will be utilized to reduce certain borrowings, ₹119 crore will be designated for working capital needs, and the remaining funds will be reserved for general corporate purposes.

Emkay Global Financial Services is serving as the book-running lead manager for the offering, while Kfin Technologies is acting as the registrar.

Innovision IPO review

Swastika Investmart indicated that with a P/E ratio of 35.69x, the stock is anticipating considerable future growth. Considering the slim margins (~5.78% EBITDA) and the commoditized nature of the manpower/toll services sector, this valuation offers a limited margin of safety. The potential for long-term gains at this price point relies on consistent margin improvement to materialize. Without evidence of a definite upward trend in margins over the upcoming quarters, there is not strong conviction for a long-term hold at this valuation.

Ventura Securities observed that Innovision has undergone substantial growth over the past two years, mainly due to its expansion in the toll plaza management and manpower services sectors. Net revenue increased to ₹893.1 crore in FY25, rising from ₹510.3 crore in FY24, which represents a 75% increase year-over-year.

EBITDA grew to ₹48.9 crore in FY25, up from ₹17.9 crore in FY24, demonstrating a 174% year-over-year increase, while profit jumped to ₹30.0 crore in FY25 from ₹10.4 crore in FY24, reflecting an impressive 189% year-over-year growth. The EBITDA margin enhanced to 5.5% in FY25, compared to 3.5% in FY24, and the profit margin rose to 3.4%, up from 2.0%.

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.