IValue Info
IPO Size: Rs. 560 cr, Entirely Offer for Sale (OFS)
- 60% of OFS by PE investor (31% stake to drop to 11% post IPO) part-exiting 6 year investment at 27% IRR
- 20% of OFS by 3 promoters (40% to shrink to 33%)
- 20% by 8 individual shareholders, mostly early employees (29% combined holding to drop to 22% post IPO)
Price band: Rs. 284-299 per share
M cap: Rs. 1,601 cr, implying 35% dilution
IPO Date: Thu 18th Sep to Mon 22nd Sep 2025, Listing Thu 25th Sep 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Enterprise Technology Security Solution Integrator
IValue Infosolutions is a 17 year old Bengaluru-based B2B solution provider for securing and managing digital applications and data across key technology segments like cybersecurity, information lifecycle management, data centre infrastructure, application lifecycle management and hybrid cloud solutions. Company essentially connects technology OEMs with enterprise customers (no B2C) by partnering with System Integrators.
Healthy Growth
Company’s revenue, net of purchases, jumped from Rs. 500 cr in FY22 to Rs. 923 cr in FY25, posting 23% revenue CAGR in the last 3 years. Of this, data centre segment was the fastest growing, at 46% CAGR. Cybersecurity and data centers account for 47% and 17% of FY25 revenue respectively and both present a large opportunity.
FY25 EBITDA stood at Rs. 134 cr, leading to 14% EBITDA margin, while PAT stood at Rs. 85 cr, rising from Rs.37 cr in FY22.
Net margin has expanded from 7.5% in FY23 to 9.2% in FY25. On tiny equity of Rs.10.7 cr (FV Rs. 2 each), EPS was at Rs. 16, with 21% RoE on net worth of Rs. 464 cr. Company is net debt free, with surplus cash of Rs. 123 cr or Rs. 23 per share.
Business Risks
- Exposed to foreign currency risk, as Rs. 303 cr or 12% of gross revenue is generated in foreign currency, but Rs. 1,200 cr expenses are in foreign currency.
- Debtors of Rs. 826 cr represent 4 months of gross sales of Rs. 2,440 cr. But due to corresponding credit period available to the company, working capital outstanding is reasonable at 1.5 months. Despite undertaking government contracts, ~3% of debtors or Rs. 25 cr is outstanding for over 1 year, which may potentially become bad.
- Employee attrition of 34% is on the higher side.
Attractive Pricing
M cap of Rs. 1,600 cr and enterprise value (EV) of Rs. 1,480 cr is undemanding, for Rs. 100 cr estimated PAT for FY26E. Current year PE multiple of 16x adequately covers potential risks highlighted above. While there are no exact peers, PE of 16x is seen attractive for high single digit margin, 21% RoE and vast growth opportunities in cybersecurity and data centres domains. iValue has growth for all the years in last 17 years of existence.
