Creador-backed iValue Infosolutions files for IPO with full offer-for-sale component

Motilal Oswal Financial Services and IIFL Securities are merchant bankers for the issue

Bengaluru-based iValue Infosolutions has filed preliminary papers with the markets regulator Securities and Exchange Board of India (SEBI) for fundraising through an initial public offering (IPO). The IPO consists of only an offer-for-sale (OFS) component comprising 1.87 crore equity shares with no fresh issue component.

Promoters Krishna Raj, Sunil Kumar, and Srinivasan Sriram will be selling their equity shares in the offer-for-sale. This means the entire issue proceeds, barring IPO expenses, will go to selling shareholders, i.e., the promoters, and the company will not receive any funds from the issue. Sundara (Mauritius) Ltd, an affiliate of private equity firm Creador, will also be selling 1.1 crore shares. Sundara had invested $18 million to pick up a minority stake in the business back in 2019.

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iValue is an enterprise technology solutions provider focusing on securing and managing digital applications and data. The company offers security analytics, network security, application management, cloud integration, digital transformation, and risk assessment services to its customers in India. As per the company's draft red herring prospectus, iValue Infosolutions doesn't have any listed peers on the Indian stock exchanges.

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For the year ended March 2024, the company's revenue from operations stood at Rs 780 crore, a marginal decrease of over 2 percent from the Rs 797 crore reported during the previous year. Its net profit during the same period rose almost 17 percent to Rs 70.5 crore. In 2023, the total income of the company stood at Rs 60 crore.

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The promoters and the promoter group have a total holding of 49.14 percent, while public shareholders cover the rest, 50.84 percent, the official document of the company shows. iValue says that it is uniquely positioned in the large and fast-growing technology solutions and associated services market in India and other neighbouring economies.

Motilal Oswal Financial Services and IIFL Securities are merchant bankers for the issue, while Kfin Technologies is the registrar for the issue.

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