Innovision IPO opens today, Mar 10: Brokerages say 'Avoid'; here's why

Innovision aims to raise ₹323 crore from the public issue, comprising a fresh issue of 4.7 million shares worth up to ₹255 crore and an offer for sale of 1.2 million shares worth up to ₹67.84 cror

Innovision IPO: The initial public offering (IPO) of Innovision, a Delhi-based business services company, opens for public subscription today, March 10, 2026. The company aims to raise ₹323 crore from the public issue, comprising a fresh issue of 4.7 million shares worth up to ₹255 crore and an offer for sale of 1.2 million shares worth up to ₹67.84 crore. Under the OFS, Randeep Hundal and Uday Pal Singh are the promoters selling shareholders. 

 

According to the red herring prospectus (RHP), the company has reserved not more than 1 per cent of the issue size for Qualified Institutional Buyers (QIBs), not less than 65 per cent for retail investors, and not less than 34 per cent for the Non-Institutional Investors (NIIs).

 

Innovision IPO GMP

On Tuesday, March 10, the unlisted shares of Innovision were trading flat at ₹548, the upper end of the price band of ₹521 to ₹548 per share, according to sources tracking unofficial markets.

Innovision IPO: Here's what the brokerages suggest

SBI Securities - Avoid

According to SBI Securities, at the upper end price of ₹548, the issue is valued at a P/E Ratio of 32.5x based on its H1FY26 annualised earnings on post-issue capital. 

 

Innovision demonstrated resilient performance with Revenue/Ebitda/PAT growing at a CAGR of 86.9 per cent/85.0 per cent/80.8 per cent between FY23-FY25 to ₹893 crore/₹49 crore/₹29 crore, respectively.

 

"When compared to its peers, the IPO valuations appear to be premium. Furthermore, the company exhibits a significant concentration of business in terms of both clients and geographical regions. It is also facing a considerable number of legal and regulatory challenges, along with debarment noticesfrom some clients. While growth is strong, the margins are very low and are subject to high employee attrition," the brokerage said in its note.

 

SBI Securities recommended investors to 'Avoid' the issue and monitor the company's performance after it is listed. 

Swastika Investmart - Avoid

Analysts at Swastika said the company's return on net worth (RoNW) of 35.45 per cent is the highest in the peer group by far (next best is 19 per cent), signalling efficient capital use, which partially justifies the premium. 

 

At 35.69x P/E, the stock is pricing in significant future growth already. 

 

"Given thin margins (5.78 per cent Ebitda) and a commoditised manpower/toll services business, this valuation leaves a limited margin of safety. Long-term upside at this price needs consistent margin expansion to play out," the brokerage said in its note. 

 

Additionally, there is no strong conviction for long-term hold at this valuation unless margins show a clear upward trajectory in the coming quarters. 

Here are the key details of the Innovision IPO:

The three-day subscription window to bid for the Innovision IPO will close on Thursday, March 12, 2026. The allotment of shares is expected to be finalised on Friday, March 13, 2026. The successful allottees will receive the company's shares in their respective demat accounts on Monday, March 16, 2026. 

 

Shares of Innovision will make their debut on the exchanges, NSE and BSE, tentatively on Tuesday, March 17, 2026. 

 

The company has set the price band in the range of ₹521 to ₹548, with a lot size of 27 shares. A retail investor would require a minimum investment of ₹14,796 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar. Emkay Global Financial Services is the sole book-running lead manager for the issue.

 

According to the red herring prospectus (RHP), the company plans to utilise ₹51 crore from the net fresh issue proceeds for repayment or prepayment of certain borrowings, and ₹119 crore will be used for working capital requirements. The remaining funds will be used for general corporate purposes.    Disclaimer: The views or investment tips expressed by the brokerages in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.