Infonative Solutions Ltd, founded with the vision of providing innovative learning development solutions, is set to launch its Initial Public Offering (IPO) to raise ₹24.71 Crores. The company caters to various industries, offering custom learning content solutions for the corporate and education sectors. Established with a strong foundation, Infonative's focus is on delivering end-to-end learning solutions, which includes Learning Management System (LMS) features, product development, and course offerings.

Key IPO Information

• Subscription Dates: The subscription for the Infonative Solutions IPO will open on March 28, 2025, and close on April 3, 2025. Investors will need to apply within this period to participate in the offer.

• Price Band: The share price for Infonative Solutions IPO has been set between ₹75 and ₹79 per equity share. The company aims to raise ₹24.71 Crores through a fresh issue of 31.28 Lakh shares. The market capitalization at the upper price band of ₹79 is estimated at ₹93.59 Crores.

• Lot Size: The minimum investment for retail investors is ₹1,26,400 for one lot (1,600 shares), and for High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,52,800 for two lots (3,200 shares).

• Allotment Date: The allotment of shares will be finalized on April 4, 2025. Investors can check the allotment status on the registrar's website after the allotment date.

• Listing Date: The shares will be listed on the BSE SME platform on or about April 8, 2025.

Infonative Solutions IPO Objective

The net proceeds from the IPO will be utilized for:

1. ₹735.21 Lakhs: For the development of new products, courses, new features in the LMS, and the purchase of laptops.

2. ₹500.67 Lakhs: To meet working capital requirements.

3. General Corporate Purposes: The remaining funds will be used for general corporate purposes and potential acquisitions.

Infonative Solutions Financial Performance

Infonative Solutions has demonstrated consistent financial performance with a steady growth trajectory. The company has seen an increase in revenues from ₹1,863.26 Lakhs in FY 2022 to ₹2,095.16 Lakhs in FY 2023, reflecting its expansion in the learning solutions market.

• EBITDA for FY 2024 stood at ₹535.83 Lakhs, a significant improvement from ₹282.63 Lakhs in FY 2023.

• Profit After Tax (PAT) for FY 2024 is ₹364.47 Lakhs, indicating robust profitability.

Valuation and Key Metrics

• EPS: The company has a pre-issue EPS of ₹1.66, which is expected to decline to ₹1.22 post-issue.

• P/E Ratio: The pre-issue P/E ratio is 47.59x, and the post-issue P/E ratio is 64.24x, which suggests the IPO is priced on the higher end for its segment.

• ROE: For FY 2024, the company achieved a Return on Equity (ROE) of 15.46%, reflecting its effective utilization of shareholders' equity.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Infonative Solutions IPO is currently ₹0, reflecting a neutral outlook in the unofficial market. This indicates that there may not be significant speculative trading or price movements before the listing.

IPO Review and Recommendations

While Infonative Solutions demonstrates a promising business model in the learning solutions sector and has shown positive growth in recent years, the high P/E ratio may deter some investors from expecting significant listing gains. With a steady increase in revenue and profit, the IPO presents potential for long-term investors, but short-term speculative gains may not be evident due to the lack of a significant GMP.

Given the financial performance and valuation, investors may consider holding off on investing in the Infonative Solutions IPO if they are seeking immediate listing gains. However, those with a long-term perspective in the education and learning solutions industry might find value in the company's steady growth trajectory.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Identixweb Limited, Retaggio Industries Limited, Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited, Rapid Fleet Management Services, Active Infrastructures Limited.

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