iValue Infosolutions IPO subscribed 89% on Day 2: Should you apply?

Ivalue Infosolutions IPO Day 2

The maiden public issue of iValue Infosolutions continued to see decent investor interest on its second day of public bidding (September 19). The 560-crore IPO has been subscribed 89 percent on Day 2.

The initial public offering of the company received bids for nearly 1.17 crore shares, as against the offer size of 1.31 crore shares, according to data on NSE. Qualified Institutional Buyers (QIBs) have fully subscribed their reserved portion, while retail and Non Institutional Investors (NII) booked their portions 85 percent and 55 percent respectively.

iValue Infosolutions IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with 5 percent grey market premium (GMP) over the IPO price at Rs 314 apiece, according to data on Investorgain. This is slightly lower than the around 7 percent GMP quoted by the site a day before the IPO opened for public bidding.

According to IPO Watch, the unlisted shares of the company were trading with a little more than 6 percent GMP over the IPO price.

Key details about iValue Infosolutions IPO:

The enterprises technology solutions specialist company launched its IPO to raise Rs 560 crore through an entirely offer for sale of shares by the existing promoters at a price band of Rs 284-299 apiece.

Investors can bid for a minimum of 50 shares as part of a lot, requiring an investment of Rs 14,950 at the upper price band, and in multiples thereafter. The IPO allotments are likely to be finalized by September 23, and the shares are scheduled to be listed on stock exchanges on September 25.

Should you subscribe?

India's cybersecurity sector is anticipated to experience robust growth, with a CAGR of 19.3% from 2024 to 2030, reaching over US$ 16.4 billion by 2030, said Master Capital Services. "Various industries in India are heavily investing in digital transformation, which has significantly increased the demand for robust cybersecurity solutions. This surge is driven by the rising adoption of cloud computing, IoT, and mobile applications, which have expanded the attack surface, making businesses more vulnerable to cyber threats and creating greater opportunities for hackers to launch cyber-attacks. Consequently, there is growing demand for advanced cybersecurity solutions," it said.

"IValue Infosolutions Limited is well-positioned to capture this expected growth by capitalizing on the rising demand in the enterprise technology solutions market in India and the SAARC region. The company aims to further expand its OEM, System Integrator, and end-customer portfolio while leveraging existing relationships to generate cross-sell and up-sell opportunities. Given these favorable industry dynamics and the company’s strong positioning, investors may consider the IPO as a potential long-term investment opportunity," it added.

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