Investor participation remained weak across categories, with retail investors participating at 28%, non-institutional investors (NII) at 36%, and qualified institutional buyers (QIBs) at 99% of their allotted share.
Following the weak response, the company revised its price target to Rs 494-519 per share with effect from March 13, lower than the previous band of Rs 521-548 per share.
Novision aims to raise around Rs 323 crore through the public offering. The issue includes a fresh issue of Rs 255 crore and a sale offer of Rs 68 crore by existing shareholders.
Gray market trends reflect investor sentiment against supply. The IPO currently commands a gray market premium (GMP) of around 0%, suggesting flat listing expectations.
The revised schedule means that the issue will now be open for subscription until March 17, with allocations expected to be finalized after that and listings will be available once the extended subscription process is over.
Innovision operates in the workforce services and infrastructure support segment, providing workforce solutions, toll plaza management and skill development training services across India. The company initially started with private security services before gradually expanding into workforce outsourcing solutions. It entered the skill development business in FY14 and later expanded into product management services in FY19.
Today, the company operates in 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 outsourcing and product management.
The company has reported strong revenue growth in recent years. Revenue rose to Rs 896 crore in FY25, compared to Rs 512 crore in FY24 and Rs 258 crore in FY23. Profit after tax rose to Rs 29 crore in FY25, Rs 10 crore in FY24 and Rs 9 crore in FY23. Despite strong growth in revenue, margins remain relatively low. The company reported an EBITDA margin of around 5.78% in FY25, reflecting the dynamic nature of their operations.
The proceeds from the fresh issue will be used primarily to repay or prepay certain debt, working capital requirements, and for general corporate purposes.
Brokerage Swastika Investsmart has recommended avoiding the issue, citing concerns about valuations and the relatively low margin profile of the business. “RoNW of 35.45% is by far the highest in the peer group, which indicates efficient capital utilization and partially justifies the premium. However, at 35.69x P/E the stock is already priced for significant future growth,” the brokerage said in its note.
It added that the company operates in a labor-intensive and relatively commoditized services segment, where profitability remains modest.
