Innovision extends IPO till March 17 after failing to reach full subscription, lowers price band

The IPO of Innovision has been extended until March 17 after the issue failed to achieve full subscription in the initial bidding window, reflecting muted investor demand. The IPO, which opened for subscription on March 10, was subscribed only 32% by the end of Day 3.

Investor participation remained weak across categories, with retail investors subscribing 28%, non-institutional investors (NII) 36%, and qualified institutional buyers (QIBs) subscribing 99% of their allotted portion.

Following the weak response, the company has also revised the price band to Rs 494-519 per share with effect from March 13, lower than the earlier band of Rs 521-548 per share.

Innovision aims to raise around Rs 323 crore through the public offering. The issue comprises a fresh issue of Rs 255 crore and an offer for sale of Rs 68 crore by existing shareholders.

Grey market trends indicate subdued investor sentiment toward the offering. The IPO is currently commanding a grey market premium (GMP) of around 0%, suggesting expectations of a flat listing.

The revised timeline means the issue will now remain open for subscription until March 17, with the basis of allotment expected to be finalised thereafter and the listing scheduled once the extended subscription process concludes.Innovision operates in the manpower services and infrastructure support segment, providing workforce solutions, toll plaza management and skill development training services across India.The company initially started with manned private security services before gradually expanding into manpower outsourcing solutions. It entered the skill development business in FY14 and later expanded into toll management services in FY19.

Today, the company operates across 23 states and five union territories, providing workforce management and operational support services to corporate clients as well as infrastructure operators.

Its revenues are largely derived from service contracts and long-term operational engagements, particularly in manpower outsourcing and toll management.

The company has reported strong revenue growth in recent years. Revenue rose to Rs 896 crore in FY25, compared with Rs 512 crore in FY24 and Rs 258 crore in FY23. Profit after tax increased to Rs 29 crore in FY25, up from Rs 10 crore in FY24 and Rs 9 crore in FY23. Despite the strong growth in revenue, margins remain relatively thin. The company reported an EBITDA margin of about 5.78% in FY25, reflecting the manpower-intensive nature of its operations.

Proceeds from the fresh issue will be used primarily for repayment or prepayment of certain borrowings, working capital requirements, and general corporate purposes.

Brokerage Swastika Investmart has recommended avoiding the issue, citing concerns over valuations and the relatively low margin profile of the business. “RoNW of 35.45% is the highest in the peer group by far, which signals efficient capital use and partly justifies the premium. However, at 35.69x P/E the stock is already pricing in significant future growth,” the brokerage said in its note.

It added that the company operates in a manpower-intensive and relatively commoditised services segment, where profitability tends to remain modest.