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Innovision IPO Stumbles: Subscription Falls Flat
13 Mar
Summary
- Innovision's IPO saw only 30% subscription despite extensions.
- Retail and NII participation remained muted throughout the bidding.
- The company aims to raise Rs 323 crore through the public issue.
Innovision's Initial Public Offering (IPO) experienced weak investor response, securing only around 30% subscription. This performance persisted even after the bidding period was extended and the price band was lowered in an effort to boost interest.
The IPO, originally open from March 10 to March 12, was extended to March 17. The price band was adjusted from Rs 521-548 to Rs 494-519 per share starting March 13. Despite these measures, the overall subscription remained low.
Participation from retail investors reached 26%, and the non-institutional investor (NII) category saw 35% subscription. In contrast, qualified institutional buyers (QIBs) showed robust interest, with their portion subscribed 95%.
The company intends to raise approximately Rs 323 crore. This includes a fresh issue of Rs 255 crore and an offer for sale of Rs 68 crore by existing shareholders. Proceeds will fund working capital, repay borrowings, and cover general corporate expenses.
Innovision operates in manpower services and infrastructure support, including toll plaza management and skill development, across 23 states and five union territories. The company has reported strong revenue growth, with revenues increasing to Rs 896 crore in FY25 from Rs 512 crore in FY24 and Rs 258 crore in FY23. Profit after tax also rose to Rs 29 crore in FY25.
However, profitability margins remain modest, with an EBITDA margin of 5.78% in FY25 due to the labor-intensive nature of its business. Grey market indications suggest a flat listing, reflecting a cautious market sentiment towards the offering.
