Manpower and toll plaza management services provider Innovision Ltd on Thursday extended the closing date of its initial public offering (IPO) to March 17 and reduced the price band, following a lukewarm response from investors.
The IPO, which opened for subscription on March 10, was earlier scheduled to close on March 12. The company has now revised the price band to ₹494-519 per share, lower than the earlier band of ₹521-548 per share, an update with the stock exchange showed.
The new price band would be effective from March 13, it added.
Investor participation remained subdued during the first three days of the issue. As of the third day, the IPO was subscribed 32 per cent overall, according to data available with the National Stock Exchange (NSE).
Among the investor categories, the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 99 per cent, while the non-institutional investors (NIIs) category saw a 36 per cent subscription.
The retail investor segment witnessed the weakest demand, with subscriptions at 28 per cent.
The Haryana-based company’s proposed IPO comprised a combination of a fresh issuance of ₹255 crore and an Offer For Sale (OFS) of 12.38 lakh equity shares. Now, it’s offering 61.32 lakh shares.
Proceeds from the fresh issuance will be used towards payment of debt, funding the company’s working capital requirements, and for general corporate purposes.
The company specialises in providing manpower services, which include manned private security, integrated facility management services, as well as manpower sourcing and payroll management.
The toll plaza management operations involve user fee collection and related services at toll plazas, secured through competitive bidding processes. Additionally, the company is empanelled with NHAI for toll collection at various locations.
Innovision also offers skill development training as a partner for the Centre and various state government initiatives. Through its wholly-owned subsidiary, Innovision International Pvt Ltd, the company provides recruitment, placement consultancy, and visa facilitation services.
Currently, Innovision operates at six toll plazas located in Lachhiwala (Uttarakhand), Nazirakhat (Assam), Sarsawa (Uttar Pradesh), Paschim Madati (West Bengal), Newadakanthi (Uttar Pradesh) and Tarwa Dewa (Uttar Pradesh).
Emkay Global Financial Services is the sole book-running lead manager to the issue.