Rs 560.29 Crore OFS IPO: Ivalue Infosolutions’ shares get listed on BSE & NSE below issue price

On Thursday, shares of Ivalue Infosolutions Ltd marked their debut on stock exchanges, that is BSE and NSE. On BSE, the stock is listed at Rs 285 per share and on NSE, the stock is listed at Rs 290 per share. The IPO was oversubscribed 1.82 times overall. The QIB portion saw the highest subscription at 3.18 times, followed by retail investors at 1.28 times and Non-Institutional Buyers (NIIs) at 1.26 times.

Ivalue Infosolutions, a specialist in enterprise technology solutions, is entirely an offer-for-sale (OFS) of Rs 560.29 crore. The IPO price band was set for Rs 284 to Rs 299 per share, with a face value of Rs 2. The issue opens on September 18, 2025 and closes on September 22, 2025, with a tentative listing date of September 25, 2025, on both the NSE and BSE. The IPO's objective is a promoter exit, as the company will not receive any proceeds from the sale, which will go directly to the selling shareholders. The minimum investment for retail investors is Rs 14,950 for one lot of 50 shares.

iValue Infosolutions operates as a Value-Added Distributor (VAD) by partnering with Original Equipment Manufacturers (OEMs) and System Integrators (SIs) to provide tailored solutions for enterprises. The company's business is diversified across key segments, including Cybersecurity (46.9 per cent), Information Lifecycle Management (22 per cent) and Data Centre Infrastructure (17 per cent). The company's unique value proposition lies in its consultative approach, multi-OEM solution stacks and a strong ecosystem of 109 OEMs and 804 SIs, serving over 2,800 enterprise customers. This differentiated positioning sets it apart from traditional distributors and aligns it with the rapidly growing IT transformation market, which is projected to expand significantly in both India and globally.

Financially, iValue Infosolutions has shown consistent performance, with revenue from operations growing to Rs 923 crore in FY25 from Rs 780 crore in FY24. The company has also demonstrated solid profitability, with a net profit of Rs 85 crore and a net profit margin of 9.1 per cent in FY25. Despite this positive trend in revenue and profitability, a significant concern is the company's weak cash flow generation. An analysis of its financials reveals that receivables account for over 90 per cent of its sales, resulting in low cash flow from operations and raising questions about the sustainability of its growth, despite being profitable.

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From a valuation and investment perspective, the IPO is priced at an attractive level. At the upper price band of Rs 299, the company is valued at 18.7x its FY25 EPS. While this is at a premium compared to broader IT distributors like Redington and Rashi Peripherals, the valuation is justified by iValue’s niche positioning and strong presence in high-growth segments, such as cybersecurity and cloud services. The company's strategic alignment with robust industry tailwinds, along with its consistent financial growth, supports the premium.

Disclaimer: The article is for informational purposes only and not investment advice.