Infonative Solutions Ltd is a privately-owned organization focused on providing customized learning development solutions. The company’s services cater to various industries, including the corporate and educational sectors, and the name "Infonative Solutions" merges the concepts of Information Technology and Innovative Solutions, highlighting its mission to support learning content solutions.

The company is set to raise ₹24.71 crores through its initial public offering (IPO), which consists of a fresh issue of 31.28 lakh shares. The IPO opens for subscription on March 28, 2025, and closes on April 3, 2025. The allotment is expected to be finalized by April 4, 2025, with shares being listed on BSE SME by April 8, 2025. The IPO's price band is set between ₹75 and ₹79 per equity share, offering investors an opportunity to participate in this unique offering.

IPO Subscription Details

The Infonative Solutions IPO allows investors to subscribe for shares in a price range of ₹75 to ₹79 per share. The lot size for this IPO is 1,600 shares, with a retail investor needing to invest a minimum of ₹1,26,400. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,52,800 for 2 lots.

As of 7:00 PM on April 3, 2025, the IPO was subscribed 4.35 times, indicating strong demand. Investors can track the live subscription status on the BSE website.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) of Infonative Solutions' IPO is reported to be ₹0, indicating that there is currently no market movement in the grey market. This could be due to the limited demand for the IPO in the unregulated market, and it is important to note that GMP should be viewed as a non-reliable indicator. Investors should focus on the listing price and official market conditions.

Financial Overview of Infonative Solutions Ltd

Infonative Solutions Ltd has demonstrated steady growth over the years. For the fiscal year ending September 30, 2024, the company reported revenues from operations of ₹1,142.30 lakh, up from ₹1,807.80 lakh in FY 2023 and ₹2,095.16 lakh in FY 2022. The company's EBITDA for FY 2024 was ₹535.83 lakh, showing significant improvement over previous years. Profit after tax (PAT) for FY 2024 was ₹364.47 lakh, a healthy increase compared to ₹145.02 lakh in FY 2023.

The company’s P/E ratio for the pre-issue is 47.59x, which increases to 64.24x post-issue. The company’s Return on Capital Employed (ROCE) stands at 18.60% for FY 2024, and its Return on Equity (ROE) is 15.46%. These metrics suggest that the IPO is fairly priced, with a good potential for long-term growth.

Objectives of the Infonative Solutions IPO

Infonative Solutions aims to utilize the proceeds from the IPO to fund several key business initiatives:

1. Development of new products and features: ₹735.21 lakhs will be used for the development of new products, courses, and features for their Learning Management System (LMS), along with the purchase of necessary technology like laptops.

2. Working capital requirements: ₹500.67 lakhs will be allocated towards the company's working capital needs.

3. General corporate purposes: A portion of the funds will be used for general corporate expenses and to explore potential acquisitions.

IPO Allotment Process

The allotment for Infonative Solutions’ IPO will be finalized by April 4, 2025. Investors can check their allotment status through the registrar’s website by entering their application number, PAN, or DP Client ID.

Conclusion and IPO Review

Infonative Solutions is poised to make a notable debut on the BSE SME with its IPO. The company's steady financial growth and the backing of experienced promoters indicate a promising future. However, with the IPO priced at a P/E ratio of 47.59x (pre-issue), investors should consider their investment objectives carefully. The Grey Market Premium (GMP) has shown no movement, which suggests that investors should be cautious about potential listing gains.

Given the company's solid financials, long-term investors may find value in holding shares for future growth, but speculative investors hoping for quick listing gains should avoid this IPO. Therefore, we recommend that investors approach this offering with caution, particularly for those seeking listing gains.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

The Closed IPOs are  Infonative Solutions Limited, Spinaroo Commercial Limited,Retaggio Industries Limited.

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