Innovision Limited
Update (12.03.26 9:30 pm): Due to poor response of just 0.32x subscription on closing day today, IPO price is now lowered 5% to Rs. 494-519 per share with closing date extended by 3 days to 17.3.26. Our negative view remains unchanged even at this IPO price.
IPO Size: Rs. 323 cr
- Fresh Issue of Rs. 255 cr for (i) Rs. 119 cr working capital funding (ii) loan repayment of Rs. 51 cr, of Rs. 107 cr net debt
- Offer for Sale (OFS) of Rs.68 cr by the promoter (100% stake to shrink to 75%)
Price band: Rs. 521-548 per share
M cap: Rs. 1,291 cr, implying 25% dilution
- Allocation (voluntary by company): 65% for retail, 34% for HNI and 1% for institutional investors
IPO Date: Tue 10th Mar to Thu 12th Mar 2026, Listing Tue 17th Mar 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Staffing and Toll Service Provider
Innovision Limited is a 19 year old Gurugram headquartered service provider of manpower and toll plaza management, with approximately Rs. 1,000 cr revenue split 40:60 between the two verticals. National Highway Authority of India (NHAI) is company’s sole customer for toll plaza management, leading to large client concentration risk. Company has other risks too, such as:
- NHAI had debarred the company for 1 year in Jul 2025, which was subsequently stayed by Delhi High Court. This is an existential risk, as more than 50% revenue is contributed by NHAI.
- In FY25, promoter charged Rs. 30 lakh of personal expenses to company, increasing risk of such future incidents
Growing Financials
FY25 revenue surged 74% YoY to Rs. 893 cr, mainly due to toll management segment. H1F26 revenue was more or less stagnant at Rs. 480 cr, with PAT of Rs. 20 cr for the first half of the fiscal.
Debtors outstanding rose to Rs.145 cr, as of 30.9.25, from Rs. 107 cr as of 31.3.25, with collection cycle elongating to 1.8 months, from 1.4 months in H1FY26.
Aggressive Pricing
On H1FY26 EPS of Rs. 10.8, PE multiple of 25x is seen expensive for low single digit net margin of 3-4%, with EBITDA margin also barely 5-6%. Peers Krystal and Updater are trading at PE of 10-15x, for larger topline and similar margin profile.
While Innovision’s topline growth has been strong in the past 3 years, business is both commoditised and price-sensitive. It lacks pricing power and susceptible to high competitive pressures.
