Innovision IPO GMP: Investors Eye Potential Gains

“Grey market premium indicates investors’ readiness to pay more than the issue price,” a market analyst noted, reflecting the current sentiment surrounding the Innovision IPO. As the company prepares for its public offering, the grey market premium (GMP) has reached +26, suggesting a potential listing price of ₹545, above the upper end of the IPO price band set at ₹519.

The Innovision IPO, which aims to raise ₹322.84 crore, was initially scheduled to close on March 12 but saw an extension to March 17 due to a tepid response from investors. The IPO has reserved not more than 1% of the shares for qualified institutional buyers (QIB), while the retail portion has seen a subscription rate of 28%. In contrast, the non-institutional investor (NII) portion has been booked 2.63 times, indicating a stronger interest from that segment.

Financially, Innovision has shown significant growth, with net revenue increasing to ₹893.1 crore in FY25, up from ₹510.3 crore in FY24. EBITDA also grew to ₹48.9 crore in FY25, a substantial rise from ₹17.9 crore the previous year. Profit jumped to ₹30.0 crore in FY25 from ₹10.4 crore in FY24, showcasing the company’s robust performance leading up to the IPO.

Despite the positive growth metrics, some analysts are cautious. “This valuation offers a limited margin of safety,” stated a representative from Swastika Investmart. The current GMP indicates a downward trend, which could affect investor sentiment as the IPO approaches its closing date.

What observers say

“Innovision has undergone substantial growth over the past two years,” commented analysts from Ventura Securities, highlighting the company’s impressive financial trajectory. However, the mixed signals from the market regarding the GMP and subscription rates suggest that investors should proceed with caution.

The basis of allotment for the IPO will be finalized on March 18, with refunds initiated on March 19. Shares are expected to be credited to the demat accounts of allottees on the same day, marking a significant milestone for the company as it transitions into the public market.

As the IPO date approaches, all eyes will be on the final subscription numbers and the market’s reaction to the listing. Details remain unconfirmed, but the current trends indicate a complex landscape for potential investors in the Innovision IPO.