Innovision Ltd. Has extended the closing date of its initial public offering (IPO) to March 17, after failing to achieve full subscription during its initial bidding period, signaling muted investor interest in the manpower and infrastructure support services provider. The IPO, which launched on March 10, was subscribed only 32% by Thursday, according to data from the National Stock Exchange (NSE).
The company also revised the price band to between Rs 494 and Rs 519 per share, effective March 13, a reduction from the original range of Rs 521 to Rs 548 per share. The move comes in response to the tepid demand from investors, PTI reported.
Investor participation has been uneven across categories. Qualified Institutional Buyers (QIBs) subscribed 99% of their allotted portion, while Non-Institutional Investors (NIIs) accounted for 36% of the shares offered. However, the retail investor segment demonstrated the weakest demand, subscribing only 28% of the shares reserved for them.
Innovision aims to raise approximately Rs 323 crore through the public offering, comprised of a fresh issue of Rs 255 crore and an offer for sale of Rs 68 crore by existing shareholders. The company intends to use the proceeds from the fresh issue for repayment of debt, working capital requirements and general corporate purposes.
The Haryana-based company provides workforce solutions, toll plaza management, and skill development training services across 23 states and five union territories in India. It initially focused on manned private security services before expanding its offerings.
Innovision has demonstrated strong revenue growth in recent years, with revenue increasing to Rs 896 crore in fiscal year 2025, compared to Rs 512 crore in fiscal year 2024 and Rs 258 crore in fiscal year 2023. Profit after tax rose to Rs 29 crore in fiscal year 2025, up from Rs 10 crore in fiscal year 2024 and Rs 9 crore in fiscal year 2023. However, the company’s EBITDA margin remains relatively thin, at approximately 5.78% in fiscal year 2025, reflecting the labor-intensive nature of its operations.
Brokerage firm Swastika Investmart has advised against investing in the IPO, citing concerns about valuations and the company’s low margin profile. The brokerage noted that while Innovision’s Return on Net Worth (RoNW) of 35.45% is the highest among its peers, the stock is already pricing in significant future growth at 35.69x P/E. Swastika Investmart also highlighted that the company operates in a competitive and commoditized services segment, where profitability tends to be modest.
Grey market trends currently indicate a flat listing for Innovision, with a grey market premium (GMP) of around 0%, suggesting limited investor expectations for an immediate price increase following the IPO.
The basis of allotment for the IPO is now expected to be finalized after the extended subscription period concludes on March 17, with listing on the NSE and BSE tentatively scheduled for March 17, 2026.