Business Profile of Innovatiview India Limited
Innovatiview ltd. is a technology-driven company that provides solutions for examinations, elections, and large-scale events at the pan-India level through automated ancillary security and surveillance. As of now company has a market share of 73.75% in terms of revenue in FY2024, The Company provides a products range of solutions in closed circuit television (CCTV) surveillance, physical security systems like frisking, biometric control, voice over internet protocol (VoIP) communication system, global positioning system (GPS) tracking, and dedicated examination infrastructure. There are three categories in which a company provides services such as Integrated Security as a Service (ISaaS), Equipment Rental as a Solution (ERaaS), and System Integration as a Solution (SIaaS).
Innovatiview India Limited IPO Objective
As per the draft red hearing prospects, the IPO issue consists of fresh issue and offer for sale. The OFS consists up to XXXX Equity Shares at the face value of ₨ 5 each aggregating up to ₹ 20,000.00 million. There is no fresh issue of shares by company and main objective of company for listing is to achieve the benefits of listing the Equity Shares on the Stock Exchanges and provide liquidity to our existing Shareholders.
IPO Details of Innovatiview India Limited
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₹ 20,000.00 million | |
| Fresh Issue | N.A. |
| N.A. | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₹ 20,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Issue Price & Size: Innovatiview India Limited IPO
The issue price of Innovatiview India Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has an offer for sale of XXXX equity shares at the price of ₨XXXX aggregating up to ₹20,000.00 million.
Launch Date of Innovatiview India Limited
The IPO opening date of Innovatiview India Ltd. hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Innovatiview India Limited Financial Statements
| Particulars | 30 Sept 2024 |
31 Mar,2024 |
31 Mar, 2023 |
31 Mar, 2022 |
| INCOME | ||||
| Revenue from operations | 4,849.22 | 6,380.52 | 3,807.27 | 2,382.08 |
| Other income | 81.55 | 88.95 | 19.20 | 5.49 |
| Total income | 4,930.77 | 6,469.47 | 3,826.47 | 2,387.57 |
| EXPENSES | ||||
| Purchases of stock - in - trade | 132.68 | 246.74 | 160.28 | 372.55 |
| Change in inventories of stock - in - trade | ( 46.48 ) | ( 47.22 ) | ( 9.57 ) | ( 36.58 ) |
| Employee benefits expense | 343.08 | 545.51 | 204.84 | 94.38 . |
| Finance costs | 74.19 | 107.28 | 89.72 | 49.96 |
| Depreciation and amortization expense | 209.05 | 464.52 | 314.04 | 111.00 |
| Examination and event management expenses | 1,122.26 | 1,326.78 | 789.89 | 646.49 |
| Other expenses | 1,101.72 | 1,188.81 | 752.49 | 429.58 |
| Total expenses | 2,936.50 | 3,832.42 | 2,301.69 | 1,667.38 |
| Profit before exceptional item | 1,994.27 | 2,637.05 | 1,524.78 | 720.19 |
| Share of net profit of investments | - | 0.18 | - | - |
| Profit before exceptional item and tax | 1,994.27 | 2,637.23 | 1,524.78 | 720.19 |
| Exceptional items | 155.54 | - | - | - |
| Profit before tax | 1,838.73 | 2,637.23 | 1,524.78 | 720.19 |
| Tax expense | ||||
| Current tax | 543.12 | 770.08 | 374.72 | 132.26 |
| Deferred tax | ( 24.55 ) | ( 102.40 ) | 4.49 | 26.18 |
| Taxes pertaining to earlier years | 10.10 | 2.36 | - | - |
| Income tax expense | 528.67 | 670.04 | 379.21 | 158.44 |
| Profit after tax | 1,310.06 | 1,967.19 | 1,145.57 | 561.75 |
| Particulars | Ended 30 Sept,2024 | 31 mar,2024 | 31 mar,2023 | 31 mar,2022 |
| Revenue from Operations (million ) | 4,849.22 | 6,380.52 | 3,807.27 | 2,382.08 |
| Profit after tax ( million ) | 1,310.06 | 1,967.19 | 1,145.57 | 561.75 |
| PAT Margin ( % ) | 26.57 % | 30.41 % | 29.94 % | 23.53 % |
| EBITDA ( ₹ million ) | 2,195.96 | 3,119.90 | 1,909.34 | 875.66 |
| EBITDA Margin( % ) | 45.28 % | 48.90 % | 50.15 % | 36.76 % |
| Net Worth ( ₹ million ) | 5,006.35 | 3,697.91 | 1,719.95 | 620.05 |
| Net Debt ( ₹ million ) | 1,980.40 | 467.88 | 805.91 | 289.33 |
| Net Debt to EBITDA | 0.90 | 0.15 | 0.42 | 0.33 |
| Return on Equity ( % ) | 26.12 % | 52.82 % | 63.81 % | 66.75 % |
| Return on Capital Employed " ( % ) | 28.79 % | 58.94 % | 60.03 % | 59.80 % |
| Debt to Ratio Equity | 0.43 | 0.24 | 0.50 | 0.83 |
Innovatiview India Limited Promoters & Shareholding
As of date, there are four promoters of the company. The promoter along with promoter group in aggregate collectively holds 100% of the paid-up share capital of company.
| Pre - Offer | Post -Offer | |||
| Name of Shareholder | No. of Shares | percentage | No. of Shares | Percentage |
| Promoters | ||||
| Ashish Mittal | 155,338,040 | 31.55 | [●] | [●] |
| Ankit Agarwal | 155,337,800 | 31.55 | [●] | [●] |
| Vishal Mittal | 71,637,600 | 14.55 | [●] | [●] |
| Abhishek Agarwal | 15,016,630 | 3.05 | [●] | [●] |
| Total ( A ) | 397,330,070 | 80.70 | [●] | [●] |
| Promoter Group | ||||
| MM Mittal Family Trust | 39,388,360 | 8.00 | [●] | [●] |
| SK Agarwal Family Trust | 39,388,360 | 8.00 | [●] | [●] |
| NM Mittal Family Trust | 4,923,550 | 1.00 | [●] | [●] |
| Mohan Lal Mittal | 4,431,180 | 0.90 | [●] | [●] |
| Sarvesh Kumar Aggarwal | 4,431,180 | 0.90 | [●] | [●] |
| M Agarwal Family Trust | 2,461,770 | 0.50 | [●] | [●] |
| Aanchal Gupta | 10 | Negligible | [●] | [●] |
| Anjali Singla | 10 | Negligible | [●] | [●] |
| Ankita Agarwal | 10 | Negligible | [●] | [●] |
| Total ( B ) | 95,024,430 | 19.30 | [●] | [●] |
| Total ( C = A + B ) | 492,354,500 | 100.00 | [●] | [●] |
Should You Subscribe to Innovatiview India Limited IPO or Not
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Innovatiview India Limited:
Biggest player in market
Innovatiview ltd. is the largest player in the market having a 73.7% share in terms of revenue for integrated security solutions in FY2024. The share of the company in examination security and surveillance industry has grown at 69.07% YoY basis in 2024. The examination security and surveillance market in India is increasing rapidly and company goodwill in conducting fair examinations across pan-India gives an advantage in market competition. A higher market share of the company with respect to other players provides better opportunities for the company.
Diversified portfolio for different services
The company started as an examination security service provider and is now a technology-enabled provider of security and surveillance solutions services. The company caters its services to election-integrated security solutions including CCTV infrastructure associated with polling stations. Additionally, the company caters for large-scale public events such as governments and institutional programs. This diversification of service provides an edge to the company over its competitors in the market and better revenue growth.
Pan India operations
The company works on an expansive vendor network of more than 5100 vendors as of September 30, 2024, across all over India to cater exams with local expertise. These vendors help the company to source cameras, manpower, and other necessary resource locally in a timely manner. It allows the company to plan and provide relevant services to customers irrespective of the location and scale of the project. The business model of the company includes “pay-per-use” which plays an important function in delivering service at vast.
Robust profitability track record
The company has a proven track record of profitability and growth in revenue. Revenue from operation increased from ₨2,382.08 million (FY2022) to ₨6,380.52 million (FY2024) at a CAGR of 64.61% which shows the company's operational efficiency and ability of customer acquisition. The company is continuously profitable from FY 2022 to FY 2024 and return ratios are also positive which is a result of the ability to utilize existing pool assets in an effective manner. ISaaS and EraaS offer more contributions to increase output and in profit growth.
Risk Factors of Innovatiview India Limited
Key client dependency
Company obtain its majority revenue from its top 10 clients through “ISaaS” solutions company offers examination integrated security solution to clients which are governments authorities mostly. Any loss in these top client due to reduction in number of examinations being conducted, introduction of alternative security measures or demand of price reduction by clients could adversely affect revenue and business operations.
| Sept ended 2024 | FY 2024 | FY 2023 | FY 2022 | |||||
| Particulars | Amount (₨ Mn) |
% of Revenue | Amount (₨ Mn) |
% of Revenue | Amount (₨ Mn) |
% of Revenue | Amount (₨ Mn) |
% of Revenue |
| Top 1 client | 2,255.09 | 46.50 % | 2,316.12 | 36.30 % | 1,574.35 | 41.35 % | 471.44 | 19.79 % |
| Top 5 clients | 3,511.04 | 72.40 % | 3,863.00 | 60.54 % | 2,594.16 | 68.14 % | 1,267.36 | 53.20 % |
| Top 10 clients | 3,913.40 | 80.70 % | 4,695.02 | 73.58 % | 2,966.14 | 77.91 % | 1,648.37 | 69.20 % |
Revenue concentration
The ISaaS business of the company delivers examination-integrated security solutions, elections surveillance, and large public events surveillance. The major portion of company revenue comes from ISaaS business, any event that affects the physical examination requirements could impact negatively for company. Such as the transition towards examination being conducted at the examinee's own location without any security surveillance will affect business and profit margins.
Vendor network risk
Company business relies heavily on vendor network to offer service across the country, any failure to maintain vendors network or loss of vendor network due to other player entrance into the market and better payment options by other players to vendors could hinder the ability to source equipment and manpower required for pan-India operations and may adversely affect business operations, cash flows, and financial condition.
Government role
The company depends on contracts with government institutions which contribute a significant portion of revenue for the business in which the company conducts national and state-level examinations, and organizes large-scale events like elections and summits. In this company is required to maintain pre-qualifications based on several criteria including technologically advanced equipment for security, if the company does not update its security system then in the future company could lose its credibility and government contract which adversely affects the results of operations and revenue of the company.
| As of September 30 , 2024 | As of 31, March Ended | |||
| Particulars | 2024 | 2023 | 2022 | |
| Number of government institutions | 57 | 57 | 36 | 40 |
| Government institutions as a percentage of total clients | 80.28 % | 70.37 % | 56.25 % | 64.52 % |
Innovatiview India Limited Grey Market premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Innovatiview India Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
