The initial public offering (IPO) of manpower services and toll plaza management provider Innovision Ltd saw modest investor participation on the first day of bidding on March 10, with the issue subscribed less than 2 percent by the afternoon. The retail and the HNI portions of the public issue were yet to see any meaningful bidding, while a much smaller institutional investors' quota was nearly full.
According to consolidated data from the NSE and BSE as of 3:21 pm, Innovision IPO received bids for 1.15 lakh shares against 61.32 lakh shares on offer. The qualified institutional buyers (QIB) portion saw the strongest participation, with bids for 58,914 shares against 61,323 shares reserved, translating into a 96 percent subscription.
The retail individual investor (RII) category was subscribed more than 1 percent, receiving bids for 55,377 shares against 39.86 lakh shares reserved for the segment. Of these, 47,871 shares were bid at the cut-off price. The non-institutional investor (NII) segment saw limited demand, with bids for just 1,134 shares compared with 20.85 lakh shares allocated for the category.
The Rs 322.84-crore IPO opened for subscription on March 10 and will close on March 12. The issue is priced in a band of Rs 521-548 per share, with investors able to bid for a minimum lot of 27 shares. The IPO comprises a fresh issue of Rs 255 crore and an offer for sale of 12.38 lakh shares. At the upper end of the price band, the company’s post-listing market capitalisation is estimated at about Rs 1,290.72 crore.
Proceeds from the fresh issue will be used to repay certain borrowings, fund working capital requirements, and for general corporate purposes.
Gurgaon-based Innovision provides manpower services and toll plaza management and operates across 23 states and 5 union territories. In FY25, the company derived 41 percent of its revenue from manpower services and 56 percent from toll plaza management. For FY25, Innovision reported a profit of Rs 29 crore, up 182.5 percent from the previous year, while revenue rose 75 percent to Rs 893.1 crore.
However, SBI Securities has recommended that investors avoid the issue, citing premium valuation compared with peers, significant concentration in clients and geography, and ongoing legal and regulatory challenges. The brokerage also highlighted low margins and high employee attrition as risks.
Emkay Global Financial Services is the book-running lead manager to the issue, while Kfin Technologies is the registrar. The IPO allotment is expected to be finalised on March 13, with a tentative listing date of March 17 on the BSE and NSE.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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