Infonative Solutions Ltd is a privately-owned organization that offers custom learning development solutions tailored to meet the needs of clients across various industries. The company was established with a vision to innovate and deliver high-quality learning content solutions, particularly focusing on the corporate and education sectors. The name "Infonative Solutions" reflects its core philosophy of integrating Information Technology with Innovative Solutions, a vision that supports the development of advanced educational products and services.

The company is planning to raise ₹ 24.71 Crores through an IPO that consists entirely of a Fresh Issue of 31.28 Lakh Shares. This IPO is a Book Built Issue, with the share price set between ₹ 75 and ₹ 79 per equity share. The subscription period for the IPO will open on March 28, 2025, and close on April 03, 2025. Investors will be able to track the live subscription status as it progresses through BSE, with the allotment date expected to be finalized on April 04, 2025, and the tentative listing date on April 08, 2025 on the BSE SME platform.

Infonative Solutions IPO Share Price and Market Capitalization

The IPO price band is set at ₹ 75 to ₹ 79 per equity share, making it accessible for retail investors with a lot size of 1,600 shares. Retail investors will need to invest a minimum of ₹ 1,26,400, while High-Net-Worth Individuals (HNIs) will be required to invest a minimum of ₹ 2,52,800 (2 lots of 3,200 shares). The market capitalization of Infonative Solutions at the upper price band of ₹ 79 per share will be ₹ 93.59 Crores.

The Grey Market Premium (GMP) for the IPO is currently expected to be ₹ 0, indicating no anticipated price movement before the listing. The GMP is based on the demand and supply in the unorganized market and should be used for informational purposes only. Investors are advised not to rely on the GMP for making investment decisions, as actual trading and pricing will only be determined after the shares are listed on the stock exchange.

Objectives of the Infonative Solutions IPO

The company plans to utilize the net proceeds from the IPO for several strategic purposes:

1. ₹ 735.21 Lakhs will be used for the development of new products, including new courses and features for their Learning Management System (LMS) and the purchase of laptops to support product development.

2. ₹ 500.67 Lakhs will be allocated towards meeting working capital requirements, ensuring the company can continue to operate smoothly and expand its operations.

3. The remaining proceeds will be directed towards general corporate purposes and unidentified acquisitions that could help the company grow and diversify.

Infonative Solutions IPO Financial Overview

Infonative Solutions has shown steady financial growth over the past few years. For the fiscal year ending September 30, 2024, the company reported revenues of ₹ 1,142.30 Lakhs. This shows a slight decline compared to previous years, with ₹ 1,807.80 Lakhs in FY 2023, ₹ 2,095.16 Lakhs in FY 2022, and ₹ 1,863.26 Lakhs in FY 2021. Despite this decline in revenue, the company has maintained a healthy EBITDA margin, recording ₹ 535.83 Lakhs for FY 2024.

The company’s Profit After Tax (PAT) has also shown consistent growth, with a PAT of ₹ 364.47 Lakhs in FY 2024, compared to ₹ 145.02 Lakhs in FY 2023, ₹ 106.86 Lakhs in FY 2022, and ₹ 222.56 Lakhs in FY 2021.

Key Financial Metrics

• Pre-issue EPS: ₹ 1.66

• Post-issue EPS: ₹ 1.22

• Pre-issue P/E ratio: 47.59x

• Post-issue P/E ratio: 64.24x

• Return on Capital Employed (ROCE): 18.60%

• Return on Equity (ROE): 15.46%

• Return on Net Worth (RoNW): 15.46%

These figures suggest that while the company has a solid track record, its current P/E ratios indicate that it may be priced on the higher side compared to industry standards. The Annualized EPS for FY 2024 stands at ₹ 8.36, with a PE ratio of 9.44x based on the latest financial data, making the IPO fairly priced considering its financial performance.

Investment Recommendation

Given the company's financial performance, pricing, and the current Grey Market Premium of 0.00%, we recommend that investors avoid the Infonative Solutions IPO for both listing gains and long-term investment purposes. The company has shown steady growth, but the high P/E ratios and lack of anticipated listing gains suggest that it may not offer substantial returns in the short term.

Infonative Solutions IPO Allotment and Tracking

The allotment date for the Infonative Solutions IPO is April 04, 2025, and investors can check their allotment status by visiting the registrar's website. The process involves selecting the Infonative Solutions IPO from the dropdown list and entering your application number, PAN, or DP Client ID to track the status.

In conclusion, while Infonative Solutions offers a solid business model in the education and corporate learning sector, its IPO appears to be priced conservatively, and investors should approach it cautiously.

This article provides a comprehensive overview of the Infonative Solutions IPO, covering its subscription details, pricing, market trends, allotment process, and the company’s financial health. Investors should be aware of the company’s current market standing and make informed decisions based on their investment goals.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited,Identixweb Limited.

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