Infonative Solutions Ltd is a for-profit, privately-owned company specializing in providing custom learning development solutions across various industries. The company’s core business focuses on supporting the corporate and education sectors with innovative learning content solutions. The name ‘Infonative Solutions’ combines "Information Technology" and "Innovative Solutions," representing its commitment to leveraging technology to drive learning outcomes.

Infonative Solutions is offering a Book Built Issue amounting to ₹24.71 Crores, consisting entirely of a Fresh Issue of 31.28 Lakh shares. The IPO subscription opens on March 28, 2025, and closes on April 3, 2025. The allotment is expected to be finalized on April 4, 2025, and the shares are tentatively scheduled to list on the BSE SME on April 8, 2025.

The price band for the IPO is ₹75 to ₹79 per equity share. At the upper price band of ₹79, Infonative Solutions will have a market capitalization of ₹93.59 Crores. The IPO’s lot size is 1,600 shares, with a minimum investment requirement of ₹1,26,400 for retail investors and ₹2,52,800 for High-Net-Worth Individuals (HNIs).

Key IPO Details

• Book Running Lead Manager: SHARE INDIA CAPITAL SERVICES PRIVATE LIMITED

• Registrar: KFIN TECHNOLOGIES LIMITED

• Market Maker: Share India Securities Limited

Grey Market Premium (GMP)
As of now, the Grey Market Premium (GMP) for Infonative Solutions IPO is ₹0, showing no price expectation in the grey market. GMP is speculative and should not be used as a basis for making investment decisions. The price discovery for this IPO will be available only post-listing on the BSE SME.

Financial Performance
Infonative Solutions has demonstrated consistent growth in its financials. For FY2024, the company posted revenues of ₹1,142.30 Lakh, down from ₹1,807.80 Lakh in FY2023. Despite this, the company’s EBITDA for FY2024 stood at ₹535.83 Lakh, a significant increase from ₹282.63 Lakh in the previous fiscal year. The Profit After Tax (PAT) for FY2024 was ₹364.47 Lakh, reflecting the company’s ability to grow profitably.

Key performance indicators include a pre-issue EPS of ₹1.66 and post-issue EPS of ₹1.22 for FY24. The pre-issue P/E ratio is 47.59x, while the post-issue P/E ratio is 64.24x, suggesting that the IPO is priced at a premium compared to its earnings. The Return on Capital Employed (ROCE) is 18.60%, and the Return on Net Worth (RoNW) is 15.46%. These metrics imply the IPO is fairly priced, but investors should consider the high valuation.

Objectives of Infonative Solutions IPO
The net proceeds from the IPO will be allocated towards the following purposes:

1. ₹735.21 Lakhs – Development of new products, courses, and features in the Learning Management System (LMS), including the purchase of laptops.

2. ₹500.67 Lakhs – Working capital requirements to support business growth.

3. General Corporate Purposes – Expenses for unidentified acquisitions and general corporate needs.

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

IPO Review and Recommendations
Infonative Solutions operates in a growing field of learning development solutions, and its financials show steady growth. The company's experienced leadership team and focus on innovative solutions in the education and corporate sectors provide a strong foundation for its business.

However, the high P/E ratio of 64.24x post-issue, combined with the lack of significant Grey Market Premium (GMP), suggests that the IPO may be priced at a premium. While the company’s financial performance is stable, the valuation may be a concern for investors seeking listing gains or long-term growth potential.

Given these factors, we recommend avoiding the Infonative Solutions IPO for short-term listing gains or long-term investment purposes, unless an investor has a specific interest in the company's growth in the learning development sector.

Disclaimer
This article provides general information about the Infonative Solutions IPO. It does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions regarding the IPO.

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