Innovision plans IPO, files draft papers with fresh issue of Rs 315 crore

Innovision IPO

Innovision, which provides manpower services, toll plaza management and skill development training, has filed preliminary papers with the capital markets regulator SEBI to raise funds via an initial public offering.

The IPO comprises a fresh issuance of equity shares worth Rs 315 crore, and an offer-for-sale (OFS) of 11,81,250 equity shares by promoters.

Lieutenant Colonel Randeep Hundal, and Uday Pal Singh will be selling 5.9 lakh equity shares each via OFS. They hold 49.99 percent stake each in the company.

The company that competes with Krystal Integrated Services, Updater Services, SIS, and Quess Corp will utilise Rs 55 crore out of the net fresh issue proceeds for repaying debts, and Rs 160 crore for working capital requirements.

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As of July 2024, the total outstanding borrowings (fund based) was Rs 60.98 crore. Thus, after the IPO, the debt burden of the company will reduce significantly.

The Gurgaon-based company with operations in 22 states and 5 union territories of India as of June 2024 focuses on providing manned private security services, integrated facility management services, manpower sourcing and payroll services, in the manpower services segment. In addition, it also provides skill development training as a training partner for various Central and State Government schemes.

Manpower services business contributed 51.5 percent to its revenue for the fiscal 2024, toll plaza management 47.4 percent and the remaining 1.2 percent is accounted by the skill development training segment.

The company served more than 200 clients across various sectors and rendered services at more than 1,500 client premises. Max Healthcare, Stellar Value Chain, and Sequel Logistics are some of its clients.

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Innovision recorded net profit of Rs 10.13 crore for the year ended March 2024, a 14.06 percent growth over the profit of Rs 8.88 crore in the previous year despite the robust topline growth, impacted by the weak operating margin with sharp increase in direct expenses. Revenue during the fiscal grew nearly 100 percent to Rs 510.3 crore from Rs 255.6 crore in previous fiscal.

EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 24.9 percent on-year to Rs 17.86 crore, but margin dropped 210 bps to 3.5 percent in FY24. For June FY25 quarter, it reported profit of Rs 7.4 crore on revenue of Rs 198.7 crore.

Emkay Global Financial Services is the sole book running lead manager to the issue.