Innovision extends IPO till March 17 after failing to reach full subscription, lowers price band

Innovision has announced an extension of its IPO subscription period until March 17, following disappointing investor interest, with the offering only 32% subscribed by the end of the third day. The company has lowered its price band to Rs 494-519 per share from the previous Rs 521-548 to attract more investors. Aiming to raise approximately Rs 323 crore, the IPO includes a fresh issue of Rs 255 crore and an offer for sale of Rs 68 crore from existing shareholders. The response from various investor categories has been weak, with retail and non-institutional investors participating at 28% and 36% respectively, while qualified institutional buyers subscribed to 99% of their allocated shares. The grey market signals a lackluster sentiment, showing a grey market premium of around 0%, which indicates a flat expected listing. Innovision, which operates across 23 states and five union territories in India, provides manpower services and infrastructure support, including toll management and skill development. Despite reporting significant revenue growth in recent years, the company maintains thin profit margins, raising concerns among analysts. Brokerage firm Swastika Investmart has advised potential investors to be cautious due to high valuations and low margin profiles, despite the company’s strong return on net worth (RoNW) compared to its peers.