Infinity Info BSE SME IPO review

•    The company is engaged in the business of providing customized and tailormade integrated ERP solutions.
•    It is providing its products to 26 universities and 13 enterprises.
•    The company enjoys long term relationship with its clients, that gives continued orders.
•    Based on its recent financial data, the issue is fully priced.
•    Small equity base post-IPO indicates longer gestation period for migration.
•    Well-informed investors may park funds for long term.

ABOUT COMPANY:
Infinity Infoway Ltd. (IIL) is a Software as a Service (SaaS) company primarily engaged in the business of providing customized and integrated Enterprise Resource Planning (ERP) solutions to clients across various sectors, including education, manufacturing, retail, and construction. In addition to its education and industrial ERP solutions, it also provides “Online Examination System” (OES) system to educations institutions like schools, colleges and universities to administer exams and distribute question papers to students. It has also developed a self-learning platform “Brainzorg” wherein it sells digital education courses to all classes of students on topics covered in their current education standard.

IIL'S ERP software offerings are structured across various modules such as Supply Chain Management (SCM), Customer Relationship Management (CRM), and others. The company deploys ERP software at clients’ servers and also enters into long term contracts with clients for the maintenance and ensuring the smooth functioning of the software installed. The company revenue model for the ERP software comprises of (1). Fee on Deployment of New Software and (2) annual maintenance Contract (AMC) for the ERP software deployed.

Its primary focus is on the education sector, which forms a significant part of ERP business. One of its key ERP products is a tailor-made “Campus Management System” that manages end-to-end core academic and administrative functions of universities including student information tracking, attendance, assignment monitoring, examination scheduling, and overall academic performance tracking. In its Campus Management System, every student gets their unique login credentials allotted to them through which they can login in the universities website and assess their progress and prepare their schedules accordingly. Similarly, the universities will have an admin access and can overview the overall management of their students. This can be done through multiple services provided under its Educational ERP software which includes report card generation, assignment tracking sheet, fees collection and accounts management systems etc. These services have helped clients to ensure a more efficient way of managing the operations at their universities. 

Over the past three fiscal years reported in its offer document, the company has deployed “Campus Management System” in 26 universities across India. It has active annual maintenance Contracts (AMC) in place with 22 universities, ensuring ongoing support and operational continuity of the software solutions provided. The company also provides industrial ERP software to enterprises across various industries and provide various modules like supply chain management (SCM), customer relationship management (CRM) and many more. The company has deployed a total of 13 Industrial ERP software during the last 3 fiscal years. Further, the company has active Industrial ERP software Annual Maintenance Contract with 9 enterprises. As of August 25, 2025, it had 136 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 1575200 equity shares to mobilize Rs. 24.42 cr. at the upper cap. It has announced a price band of Rs. 147 – Rs. 155 per share of Rs. 10 each.  The IPO opens for subscription on September 30, 2025, and will close on October 03, 2025. The minimum application to be made is for 1600 shares and in multiple of 800 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 28.89% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 8.58 cr. for working capital, Rs. 3.75 cr. for development of ZEROTOUCH DaaS proprietary technology solution, Rs. 2.61 cr. for IT infra and certification, Rs. 4.00 cr. for earnest money and tender deposits for tenders, and the rest for general corporate purposes.

The company has reserved 129600 equity shares (worth Rs. 2.01 cr. at the upper cap) for its eligible employees, and 79200 shares for the Market Maker. From the rest it has allocated not more than 50% for QIBs, not less than 15% for HNIs, and not less than 35% for Retail investors.

The IPO is solely lead managed by Holani Consultants Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Holani Group’s Holani Consultants Pvt. Ltd. is the market maker, as well as a syndicate member. 

After issuing initial equity shares at par, the company issued further equity shares at a price of Rs. 130 per share in September 2024 and December 2024. It has also issued bonus shares in the ratio of 360 for 1 in May 2024. The average cost of acquisition of shares by the promoters is Rs. 0.03 and Rs. 6.14 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 3.88 cr. will stand enhanced to Rs. 5.45 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 84.51 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit, of Rs. 5.38 cr. / Rs. 0.94 cr. (FY23), Rs. 10.35 cr. / Rs. 3.47 cr. (FY24), Rs. 13.49 cr. / Rs. 4.19 cr. (FY25). The company posted steady growth in its top and bottom lines for the reported periods. 

For the last three fiscals, the company has reported an average EPS of Rs. 9.26, and an average RoNW of 49.40%. The issue is priced at a P/BV of 4.74 based on its NAV of Rs. 32.70 as of March 31, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute its FY25 super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 20.16, and based on its FY24 earnings, the P/E stands at 24.37. Thus, the issue appears fully priced.

The company has posted PAT margins of 18.15% (FY23), 34.08% (FY24), 31.77% (FY25), and RoCE Margins of 58.82%, 85.01%, 43.95%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Vertexplus Techno, as its listed peer. It is currently trading at a P/E of 78.0 (as of September 26, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 10th mandate from Holani Consultants in the last three fiscals (including the ongoing one). Out of the last 9 listings, all listed with premium ranging from 90.0% to 266.20% on the date of listing.