Innovision IPO sees subscription decline despite extension of bidding window

The IPO of Innovision has experienced a disappointing subscription rate, with overall bids reaching only 30% despite an extension of the bidding window. Initially open from March 10 to March 12, the subscription period was prolonged to March 17 due to lackluster demand. By the end of Day 3, the IPO had garnered a 32% subscription, which has since seen a slight decline. Retail investor participation was at 26%, while non-institutional investors subscribed at 35%. In contrast, qualified institutional buyers showed stronger interest, with a subscription rate of 95%. To stimulate interest, Innovision lowered its price band to Rs 494-519 per share from the previously set Rs 521-548. The company aims to raise approximately Rs 323 crore through this public offering, consisting of a fresh issue of Rs 255 crore and an offer for sale of Rs 68 crore. Innovision specializes in manpower services and infrastructure support, operating across 23 states and five union territories. It has reported significant revenue growth, with FY25 revenues reaching Rs 896 crore, compared to Rs 512 crore in FY24 and Rs 258 crore in FY23. Despite this growth, profitability remains modest, with an EBITDA margin of around 5.78%. The funds raised will be used for repayment of borrowings, working capital needs, and general corporate purposes.