Innovision IPO Day 3: Subscription Muted, GMP Holds at 13%

Introduction to Innovision IPO

Innovision Ltd's ₹323 crore Initial Public Offering (IPO) has entered its third and final day of bidding on March 12, 2026. The public issue from the New Delhi-based manpower and facilities management services provider has so far received a lukewarm response from investors, particularly in the retail and non-institutional categories. Despite the sluggish subscription figures, the company's shares are commanding a stable premium in the grey market, creating a mixed sentiment among market participants.

Subscription Status on Final Day

As of 12:30 PM on the final day, the IPO was subscribed approximately 24%, according to data from the stock exchanges. The issue has received bids for about 1.46 million shares against the total 6.13 million shares on offer. The demand has been notably skewed, with the Qualified Institutional Buyers (QIBs) category showing the strongest interest. The QIB portion was subscribed around 96%, indicating confidence from institutional players. In sharp contrast, the Non-Institutional Investors (NIIs) quota was subscribed only 29%, while the portion reserved for Retail Individual Investors (RIIs) saw the weakest demand, with just 20% subscription.

Grey Market Premium Indicates Positive Listing

Despite the tepid subscription numbers, the grey market, an unofficial platform for trading in unlisted shares, suggests a positive outlook for Innovision's market debut. The Grey Market Premium (GMP) for the IPO stands firm at ₹71 per share. This premium translates to a potential listing gain of approximately 13% over the upper end of the price band, which is ₹548. Based on this GMP, the shares could potentially list at around ₹619. However, it is important for investors to note that GMP is an unofficial indicator and can change based on market sentiment.

Innovision IPO: Key Details

The public offering is a combination of a fresh issue of shares and an offer for sale (OFS) by existing promoters. The company aims to raise ₹255 crore through the fresh issue and another ₹68 crore via the OFS.

Important Dates for Investors

The IPO timeline is crucial for prospective investors to track the allotment and listing process. The bidding concludes today, with allotment expected to be finalized by the end of the week.

Brokerage Views and Valuation Concerns

Several brokerage firms have adopted a cautious stance on the IPO, advising investors to weigh the risks. Swastika Investmart has recommended avoiding the issue, primarily due to its high valuation. The brokerage pointed out that the issue is priced at a Price-to-Earnings (P/E) multiple of 35.69x, which suggests that significant future growth is already factored into the price. While the company's Return on Net Worth (RoNW) of 35.45% is strong compared to its peers, concerns remain about the sustainability of margins in the manpower-intensive business model.

Objectives of the Issue

Innovision plans to utilize the net proceeds from the fresh issue for specific corporate purposes. According to its Red Herring Prospectus (RHP), approximately ₹51 crore will be used for the repayment or prepayment of certain borrowings. A larger portion, around ₹119 crore, is allocated for funding the company's working capital requirements. The remaining funds will be used for general corporate purposes, providing operational flexibility.

Conclusion

The Innovision IPO presents a conflicting picture. On one hand, the subscription figures, especially from retail and NII segments, are underwhelming. On the other, a stable grey market premium suggests expectations of a decent listing. The high valuation remains a key concern for analysts, who advise caution. With the bidding window closing today, all eyes will be on the final subscription numbers, followed by the share allotment on March 13 and the scheduled stock market listing on March 17.