Ivalue Infosolutions IPO review

•    The company is an enterprise technology solution specialized providing its services globally.
•    The company has posted steady growth in its top and bottom lines.
•    Following change in accounting systems, it started booking net income as its top line from FY24 onwards, that results in lower top line for the said year.
•    It enjoys virtual monopoly in its segment and is poised for bright prospects ahead.
•    Based on its recent financial data, the issue appears reasonably priced and is likely to catch first mover fancy post listing.
•    Investors can park funds for medium to long term.

ABOUT COMPANY:
Ivalue Infosolutins Ltd. (IIL) is an enterprise technology solutions specialist based out of India, offering comprehensive, purpose-built solutions for securing and managing digital applications and data. It primarily serves large enterprises in their digital transformation by understanding their needs and working with System Integrators and OEMs to identify, recommend and deploy solutions meeting their requirements, aimed at ensuring performance, availability, scalability and security of digital applications and data. As per F&S, IIL is one of the fastest growing technology services and solutions integrator in India. (Source: F&S Report).

Positioned as a vital link in the technology solutions ecosystem, it enables OEMs (who research, develop and produce technology solution goods and services) to reach their target customers (primarily comprising enterprises) by partnering with System Integrators (who engage with such customers for solving their technology integration requirements). To this end, the company typically works with System Integrators to understand enterprise customers’ business and technical requirements, curate customized solutions (including multi-OEM stacks, where solutions from multiple OEMs interact with each other), and assist in procurement and deployment of the required technology solutions by partnering with OEMs, across cybersecurity, information lifecycle management, data centre infrastructure, application lifecycle management, hybrid cloud solutions and other domains. 

These domains that are critical for digital transformation, often have multiple products and solutions to choose from. At any given instance, enterprises use multiple OEMs to support their information technology and security infrastructure and applications. To choose the right information technology solutions that are interoperable across multiple OEMs, is critical for an enterprise’s information technology environment. This multi-OEM interoperability and service support becomes a crucial decision point for enterprises. With a large ecosystem of technology providers and integrators, the technology partner selection process becomes long and cumbersome. (Source: F&S Report) .

IIL helps enterprise customers navigate the technology solutions and associated services market, leveraging own experience in designing and deploying solutions for enterprise customers in the past, and technical expertise in these domains supported by a skilled and trained workforce. Over the past 16 years, it has built expertise in the dynamic, knowledge-based technology solutions and services sector, adapting to an ever-evolving landscape that demands expertise and close collaboration with multiple stakeholders, including OEMs, System Integrators and end-customers. Company’s core emphasis revolves around two major assets: data and applications. By specializing in these areas, relying on its technical proficiency and high-touch approach to sales, it curates and provides solutions that address enterprises’ needs, particularly in cybersecurity, information lifecycle management, and data center infrastructure, which are crucial for protecting and optimizing these assets.

IIL enables its partner OEMs to strategize and grow their business in a sustainable way, leveraging its large network of System Integrators and existing enterprise customers. It also deploys a customer life cycle adoption (CLCA) led approach to target the right set of enterprise customers for the OEMs at the right time, for translating their business need to technical solutions, sizing and interoperability of solutions, commercials, and delivery along with post sale implementation and sustenance services.

The company also offers technical expertise and a wide range of associated services to System Integrators, enterprise customers and OEMs. Services to System Integrators and enterprise customers mainly include multi-OEM professional and technical services, implementation and support, 24x7 managed services covering IT infrastructure, cyber security and enterprise service management functions. Its technology team of 215 employees, who account for more than 51% of total employees as on March 31, 2025, also supports with pre-sales, solution architecture, proof of concept/ demo, implementation and integration services, project management, logistics and accredited training, which help such System Integrators and enterprise customers navigate the fragmented, technically challenging and constantly evolving product offerings by OEMs. It also assists OEMs with channel development enablement and management, marketing and demand generation, which helps it maintain and strengthen relationship with OEMs currently under contract, as well as develop new relationships with OEMs offering innovative solutions.

IIL has offices across eight locations in India, including our Registered and Corporate Office in Bangalore, India. Additionally, it is also present in six international locations, namely Singapore, Bangladesh, Sri Lanka, UAE, Cambodia and Kenya. Through its team in Bangladesh, which is headquartered in Singapore, it also caters to Bhutan and Nepal markets. As of March 31, 2025, it had 421 employees on its payroll. 

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route secondary IPO of equity shares issue of 18738958 equity shares worth Rs. 560.29 cr. (at the upper cap). The company has announced a price band of Rs. 284– Rs. 299 per equity shares of Rs. 2 each. The issue opens for subscription on September 18, 2025, and will close on September 22, 2025. The minimum application to be made is for 50 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 35% of the post-IPO paid-up equity capital. This being hundred percent offer for sale, no funds are going to company. The issue is being made to provide exit to some of its existing stakeholders and unlock the listing benefits.

The joint Book Running Lead Managers (BRLMs) to this issue are IIFL Capital Services Ltd., and Motilal Oswal Investment Advisors Ltd., while KFin Technologies Ltd., is the registrar to the issue. Motilal Oswal Financial Services Ltd. is a syndicate member.

Having issued initial equity shares at par, the company issued further equity shares in the price range of Rs. 3.00 – Rs. 127.996 per share (based on Re. 2 FV), between December 2008, and August 2025. It has also issued bonus shares in the ratio of 1 for 1 in July 2024. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 2.61, Rs. 2.64, Rs. 2.69, Rs. 2.74, Rs. 2.83, Rs. 3.03, Rs. 3.05, Rs. 3.06, Rs. 3.12, Rs. 3.16, Rs. 69.97, and Rs. 70.64 per share. 

Post-IPO, its current paid-up equity capital of Rs. 10.71 cr. will remain same as this is a pure secondary issue. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 1600.84 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. 805.79 cr. / Rs. 59.92 cr. (FY23), Rs. 795.18 cr. / Rs. 70.57 cr. (FY24), and Rs. 942.35 cr. / Rs. 85.30 cr. (FY25). 

According to the management, the accounting method change effected from FY24 onwards, their top line which was shown on net income (net billing) booked basis has marked decline, and thereafter improved, but if one can see the gross revenue (gross billings), we have marked continuous growth in top line on gross basis. Around 40% business comes as a repeat orders (in the form of enhancement in software/hardware), and the rest from new customers coupled with additional new system orders.  It enjoys virtual monopoly in the segment and confident of maintaining their leadership, and margins trends.

For the last three fiscals, the company has posted an average EPS of Rs. 14.28 and an average RoNW of 21.63%. The issue is priced at a P/BV of 3.95 based on its NAV of Rs. 75.77 as of March 31, 2025, as well as on post-IPO basis.

If we attribute FY25 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 18.77. Based on FY24 earnings, the P/E stands at 22.69. Thus, the issue appears reasonably priced. 

The company has shown PAT margins of 3.29% (FY23), 3.32% (FY24), 3.47% (FY25), and RoCE margins of 37.39%, 28.98%, 27.98%, respectively for the referred periods.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has already adopted a dividend policy in August 2024, based on its financial performance and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has no listed peers in India, to compare with. However, it has shown global peers like Exclusive Networks SA, and Multi Chem Ltd.

MERCHANT BANKER’S TRACK RECORD:
The two BRLMs associated with the offer have handled 55 pubic issues in the past three fiscals, out of which 12 issues closed below the offer price on the listing date.