Infonative Solutions IPO Review: Should You Invest?

Company Overview

Infonative Solutions Ltd is a digital learning solutions provider, offering customized Learning Management Systems (LMS), e-learning content, and IT-based educational tools. The company operates in the Corporate & Education sectors, developing content and training modules for various industries.

The company is led by three experienced promoters:

• Saurabh Kathuria – Learning consultant with 19+ years of experience

• Abdur Rauf Rahmani – Visual communication design expert with 20+ years of experience

• Yogeshh Goel – Learning consultant with 10+ years of expertise

Infonative Solutions IPO Details

• IPO Issue Size: ₹ 24.71 crore

• Fresh Issue: 31.28 lakh shares

• IPO Price Band: ₹ 75 - ₹ 79 per share

• Market Capitalization (at ₹ 79 per share): ₹ 93.59 crore

• Lot Size: 1,600 shares

• Retail Investment Minimum: ₹ 1,26,400

• HNI Investment Minimum: ₹ 2,52,800 (2 lots)

• Subscription Period: March 28, 2025 – April 03, 2025

• Allotment Date: April 04, 2025

• Listing Date: April 08, 2025

• Stock Exchange: BSE SME

Financial Performance of Infonative Solutions

Revenue & Profit Trends

The company's revenue has been fluctuating, with a decline in FY24 compared to FY23. However, profit margins have improved, indicating better cost management.

Key Financial Ratios

The post-issue P/E ratio of 64.24x is high, making this IPO expensive compared to peers in the education-tech sector.

IPO Subscription Status & Grey Market Premium (GMP)

Subscription Status (Final Day - April 03, 2025, 7:00 PM)

• Total Subscription: 4.35 times

• Retail Category: 3.92 times

• HNI Category: 5.18 times

The moderate subscription indicates reasonable investor interest but not overwhelming demand.

Grey Market Premium (GMP) & Expected Listing Price

• GMP: ₹ 0 (No premium)

• Expected Listing Price: ₹ 79 (At IPO price)

A zero GMP indicates weak sentiment and suggests that the stock may list at or near its issue price without significant gains.

Use of IPO Proceeds

• ₹ 735.21 lakh for developing new LMS features, courses & tech upgrades

• ₹ 500.67 lakh for working capital

• Remaining funds for corporate expenses & acquisitions

While investment in product development is positive, the high valuation raises concerns.

Pros & Cons of Investing in Infonative Solutions IPO

Pros

✅ Growing demand for digital learning solutions
✅ Consistent profitability and margin improvement
✅ Moderate subscription (4.35x) shows some investor confidence

Cons

❌ High IPO Valuation (P/E 64.24x post-issue)
❌ No Grey Market Premium (GMP ₹ 0)
❌ SME IPOs are less liquid and highly volatile
❌ Revenue has declined in FY24 compared to FY23

Investment Recommendation: Avoid for Listing Gains, Caution for Long-Term Investment

• For Short-Term Investors: Avoid this IPO due to zero GMP and high valuation, which suggests minimal listing gains.

• For Long-Term Investors: Only consider if you believe in the digital learning sector’s growth potential and are comfortable with high valuation risks.

Disclaimer

This IPO review is for educational and informational purposes only and should not be considered financial advice. Please consult a professional financial advisor before investing.

About the Author

CA Abhay Kumar (CA Abhay Varn) is a SEBI Registered Research Analyst (INH300008465) with 8+ years of stock market experience. He cleared CA at age 21 and has worked with top CA firms.

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.