Innovision Files IPO with SEBI, aims to raise Rs 315 crore to strengthen growth

Innovision, a Gurgaon-based company that provides manpower services at toll plazas and skill development training, is all over the news, for officially filing its Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI).

Innovision, a company having a huge presence in 22 states and 5 union territories in India, is primarily aiming at getting Rs 315 crores through this IPO. Innovision is planning to utilize this prospect to reduce the debt, which will, in turn, improve the money available for its day-to-day operations, which will help it grow and develop further. The company’s decision to go public currently is highly relevant as the Indian economy is recovering, thus, giving an opportunity for businesses to attract public investors.

Innovision Files IPO with SEBI

The company Innovission has submitted its papers to the Indian regulatory authority responsible for overseeing capital markets SEBI for the AI. The Innovision IPO is designed to include a fresh issue of equity shares worth Rs 315 crore and an Offer-for-Sale (OFS) of 11,81,250 equity shares sold by the company’s promoters.

The combined investment is at fresh capital but it has got a two pronged strategy of providing an exit route for existing shareholders at the same time. Lieutenant Colonel Randeep Hundal and Uday Pal Singh, the two primary equity holders, each of whom have a 49.99 percent share in the company, will together be selling 5.9 lakh equity shares through the OFS.

Fund Utilization Strategy

The Innovision IPO is specifically designed to do the financial goals. Rs 55 crore will be used to pay the company’s outstanding debts out of the Rs 315 crore raised from the IPO. As of July 2024, the total outstanding borrowings of Innovision-based (fund-based) were Rs 60.98 crore. The reduction in the debt will make a big change to the firm which will open the way for more rapid growth through finding more funds for operations and expansion.

The company plans to spend much of the Rs 160 crore that the IPO will raise by paying debts owed to the company and filling the working capital. The company has grown very fast in the last years, and it is a very necessary and logically a very first step. The company attained revenues of up to Rs 255.6 crore in FY23 and Rs 510.3 crore in FY24, which shows that the company’s operations were more because of the increase in revenues. The rise in working capital is the driving factor in Innovision’s being able to cover its operational costs and, thus, it is the key to the maintenance of business processes and better client service.

Business Model and Revenue Streams

Innovision is a company with three principal business lines, namely, manpower services, toll plaza management, and skill development training. The workforce services sector that is the provision of manned private security services, integrated facility management, and manpower sourcing and payroll services, is the largest revenue-producing segment of the company, constituting a share of 51.5 percent in FY24. Next comes the toll plaza management suite at 47.4 percent, with the balance of 1.2 percent accounted for by skill development training part.

The company diversified its revenue streams which proved its durability and adaptability in the competition. The capability of Innovision to service more than 200 clients across different sectors, including Max Healthcare, Stellar Value Chain, and Sequel Logistics, confirms its market status. Innovision, with the most significant amount of customer sites of over 1,500, has among the major entities in the industry built up a very strong business model which is based on high network leveraging and excessive knowledge in the field.

Financial Performance and Market Position

Innovision has shown impressive financial statements no matter what its operating margins are faced with. For the fiscal year ended March 2024, the company made a net income of Rs 10.13 crores. This development made nearly 100 percent rise in revenue, from Rs 255.6 crore in FY23 to Rs 510.3 crore in FY24.

However, Innovision’s EBITDA margin saw a decline of 210 basis points, dropping to 3.5 percent in FY24, primarily due to a sharp increase in direct expenses. Despite this, the company’s EBITDA rose by 24.9 percent year-on-year, reaching Rs 17.86 crore. The first quarter of FY25 also showed promising results, with a profit of Rs 7.4 crore on a revenue of Rs 198.7 crore.

Innovision is a newcomer to the industry that has to deal with giants such as Krystal Integrated Services, Updater Services, SIS, and Quess Corp. Despite facing tremendous competition, Innovision has achieved a distinctive position for itself in the human resource sector. The company’s debt avoidance strategy and the enrichment of the working capital owned by Innovision in the IPO will empower the institution to gain an even stronger position in the market.

The Road Ahead: Growth and Expansion

Innovision IPO, which is successful because of it, will be a real cornerstone in their business growth. Innovision is in a good position to benefit from their new resources, including a lower debt burden and increased working capital, and to broaden the range of services it offers. The company’s strength in the manpower sector coupled with its variety of earnings leads provides a solid base for long-term growth.

Moreover, Innovision Strategic focus is on expansion across the country, with greater emphasis on places with low population density. This is perfectly in tune with the company’s long-term growth plans. The company, on the other hand, is looking to diversify its training program certifying options while applying the huge experience gained as a training partner for a variety of Central and State Government schemes.

Conclusion

Innovision’s decision to file an IPO with SEBI is a strategic step that helps in more securing of its financial shape and faster its route to growth. The firm is aiming at reducing debt and improving the working capital. Moreover, it will make the company ready for growth in the future with the Rs 315 crore raised through the Innovision IPO.

Innovision, with its solid business model, different ways to get income, and good financial record, is almost sure to catch the eyes of the public investors. The company, who is now stepping ahead on another episode of its endeavors, is still leaning toward consumption as its way of life to retailers, which they show quality through among others service standards in their industry of operation manpower.