Innovision IPO Day 4: Issue booked 30% so far, price band cut to ₹494-519 apiece. GMP trades flat. Apply or not?
The Innovision IPO is now set to close on March 17, with a revised price band of ₹494-519 per share. Subscription stands at 30%, with a strong response from QIBs. The company aims to raise ₹322.84 crore through the public offering.
The public offering for Innovision Ltd, which provides manpower and toll plaza management services, has been extended until March 17, and the price band has been lowered due to a lukewarm response from investors.
Originally, the IPO was set to close on March 12. The updated price band is now ₹494 to ₹519 per share, reduced from the previous range of ₹521 to ₹548 per share. This new price band will take effect beginning March 13, as stated.
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 ₹0, which means shares are trading at their issue price of ₹519 with no premium or discount in the grey market, according to investorgain.com.
Considering the grey market trends from the past ten sessions, today's IPO GMP is trending downwards and is anticipated to decline further. The minimum GMP recorded is ₹0.00, whereas the maximum GMP stands at ₹66, according to analysts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Innovision IPO subscription status
Innovision IPO subscription status was 30% on day 3, so far. The retail portion is subscribed 27%, and NII portion has been booked 35%, Qualified Institutional Buyers (QIBs) portion received 95% bids.
The company has received bids for 19,39,059 shares against 63,99,943 shares on offer, at 17:00 IST, according to data on BSE.
Innovision IPO details
At the upper end of the price band, Innovision plans to raise ₹322.84 crore, which comprises a fresh issue of ₹255 crore and an offer-for-sale of 12.38 lakh equity shares.
From the funds raised through the fresh issue, ₹51 crore will be used to pay off certain borrowings, ₹119 crore will be allocated for working capital requirements, and the remaining amount will be set aside for general corporate needs.
Emkay Global Financial Services is acting as the book-running lead manager for the issue, while Kfin Technologies serves 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 noted that Innovision has experienced significant growth over the last two years, primarily due to its expansion in toll plaza management and manpower services sectors. Net revenue surged to ₹893.1 crore in FY25, up from ₹510.3 crore in FY24, marking a 75% year-over-year increase.
EBITDA climbed to ₹48.9 crore in FY25, compared to ₹17.9 crore in FY24, signifying a 174% increase year-over-year, while profit rose to ₹30.0 crore in FY25 from ₹10.4 crore in FY24, indicating an impressive 189% year-over-year growth. The EBITDA margin improved to 5.5% in FY25, up from 3.5% in FY24, and the profit margin increased to 3.4%, rising 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.
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