Ivalue Infosolution’s Rs 560.29-Crore IPO to Open Tomorrow: Should You Subscribe to This B2B Technology Solutions Specialist?

At a Glance

Objects of the Issue

The IPO is entirely an offer-for-sale (OFS), and the proceeds will go directly to the selling shareholders. The company will not receive any funds from this issue, highlighting that the objective is promoter exit rather than raising capital for expansion.

Company Profile

iValue Infosolutions Limited operates as an enterprise technology solutions specialist. It partners with Original Equipment Manufacturers (OEMs) and System Integrators (SIs) to deliver tailored solutions for enterprises. The company functions as a Value-Added Distributor (VAD), focusing on areas like cybersecurity, data lifecycle management, data centres, application lifecycle management, and managed services.

Business Segments

The ecosystem of iValue includes 109 OEMs and 804 SIs as of FY25, serving 2,877 enterprise customers. Its consultative approach, multi-OEM solution stacks, and Centre of Excellence (CoE) differentiate it from traditional distributors.

Industry Outlook

The IT transformation market is growing rapidly. Frost & Sullivan estimates the global market will expand from USD 1,076 billion in 2024 to USD 3,380 billion by 2030, at a CAGR of 21 per cent. In India, the market is expected to grow from USD 22.7 billion in 2024 to USD 78.9 billion by 2030, at a CAGR of 23.1 per cent. Growth drivers include accelerated digital transformation, rising cybersecurity needs, government initiatives for data infrastructure, and the adoption of AI and cloud-native solutions.

Financial Performance

Financial Analysis – Revenue vs Cash Flow

The analysis highlights that while revenue has grown steadily, receivables form over 90 per cent of sales, leading to weak cash flow generation. Cash flow from operations has remained low relative to revenue, raising concerns of sustainability despite profitability.

Visual Charts -

Revenue vs Receivables Growth (Rs  crore)

(Source- Company’s RHP)

Vertical Analysis ( per cent of Sales)

(Source- Company’s RHP)

Horizontal Analysis (FY23=100 Base)

(Source- Company’s RHP)

The company shows steady revenue growth, but rising receivables—over 90 per cent of sales—indicate weak cash collection. Vertical analysis highlights low cash conversion at just 5 per cent of revenue in FY25, while horizontal analysis reveals receivables growing faster than sales. This gap signals profit recognition without strong cash flow generation, raising sustainability concerns.

Ivalue Infosolution’s Valuation and Return Ratios

Peer Comparison

Though no exact listed peer exists in India, Redington and Rashi Peripherals operate in similar distribution domains. Redington trades at 17.8x P/E while Rashi trades at 9.76x P/E, suggesting that iValue is priced at a premium supported by its differentiated positioning.

SWOT Analysis

Outlook & Valuation

iValue Infosolutions is strategically placed in the rapidly expanding IT transformation sector, which is witnessing robust double-digit growth across cybersecurity, cloud, data lifecycle, and managed services. The Indian TAM for these markets alone is projected to grow at a 23.1 per cent CAGR, from USD 22.7 billion in 2024 to USD 78.9 billion by 2030. With no direct listed peer in India, iValue’s niche positioning as a value-added technology solutions aggregator gives it a first-mover advantage in the listed space.

At the upper price band of Rs 299, the IPO is valued at 18.7x FY25 EPS, which appears reasonable when benchmarked against broader IT distributors like Redington (14.8x) and Rashi Peripherals (9.3x). The company’s consistent revenue and profit growth, expanding solution stacks, and alignment with high-growth IT spending categories support the premium valuation. However, investors should remain mindful of cash flow constraints and high receivable levels.

Recommendation

Verdict: Subscribe. The IPO offers investors entry into a high-growth sector with strong tailwinds from digital transformation, cybersecurity adoption, and government-driven IT initiatives. The lack of direct listed peers, coupled with iValue’s differentiated positioning and decent valuation, strengthens the investment case. We recommend subscribing to the IPO.