Innovision IPO sees subscription decline despite extension of bidding window. Check GMP and other details

The IPO of Innovision witnessed a decline in subscription, with the issue recording bids of about 30% overall even after the company extended the subscription window following muted demand in the initial bidding period. The IPO had received 32% subscription by the end of Day 3, when the original bidding period closed. Despite the extension, the latest data shows participation slipping slightly.

Within investor categories, the retail portion was subscribed 26%, while the non-institutional investor (NII) category saw 35% subscription. Demand from institutional investors remained relatively stronger, with the qualified institutional buyer (QIB) portion subscribed 95%.

The IPO was originally open for subscription between March 10 and March 12, but the company decided to extend the bidding period until March 17 after the issue failed to garner full subscription in the initial window.

Alongside the extension, Innovision also revised the price band downward to Rs 494-519 per share from the earlier Rs 521-548 range, effective March 13, in an attempt to attract additional investor interest.

The company is looking to raise about Rs 323 crore through the public issue. The offer comprises a fresh issue of Rs 255 crore and an offer for sale worth Rs 68 crore by existing shareholders.

Grey market indicators also reflect the cautious sentiment around the offering. The IPO is currently commanding a grey market premium of around 0%, signalling expectations of a flat listing.
Innovision operates in the manpower services and infrastructure support sector, offering workforce solutions, toll plaza management and skill development training to enterprises and infrastructure operators across India.The company initially began operations in manned private security services, before expanding into broader manpower outsourcing solutions. It subsequently entered the skill development segment in FY14 and later moved into toll management services from FY19.

Currently, Innovision operates across 23 states and five union territories, providing operational and workforce management services to clients through long-term contracts and service agreements.

Financially, the company has posted strong revenue growth over the past few years. Revenue increased to Rs 896 crore in FY25, compared with Rs 512 crore in FY24 and Rs 258 crore in FY23.

Profit after tax also rose to Rs 29 crore in FY25, up from Rs 10 crore in FY24 and Rs 9 crore in FY23. However, profitability remains modest given the nature of the business. The company reported an EBITDA margin of around 5.78% in FY25, reflecting the manpower-intensive nature of its operations.

Proceeds from the fresh issue are proposed to be utilised for repayment or prepayment of certain borrowings, funding working capital requirements and general corporate purposes.