iValue Infosolutions IPO Day 3: Weak Demand and Sharp GMP Fall Raise Concerns

iValue Infosolutions Limited, a Bengaluru-based enterprise technology distributor, is witnessing tepid response to its ₹560.29 crore IPO. On Day 2, the overall subscription reached just 0.89 times, with QIBs subscribing 1.22 times of their portion, while retail investors at 0.85 times and non-institutional buyers at 0.55 times showed limited enthusiasm. This contrasts Day 1’s slow start when bids stood at only 0.28 times in total and QIBs were absent. Meanwhile, the GMP, which had held steady at ₹15 earlier, dropped sharply to ₹8 by Day 2, signaling fading listing optimism. The mismatch between decent institutional interest and weak broader demand points towards cautious sentiment and a possible re-think by retail investors ahead of the final bidding day.

IPO Overview

• IPO Date: September 18 to September 22, 2025
• Total Issue Size: ₹560.29 crore
• Price Band: ₹284 to ₹299 per share
• Lot Size: 50 Shares
• Tentative Allotment Date: September 23, 2025
• Listing Date: September 25, 2025 (Tentative)
• Subscription Status: 0.89x as of day 2
• GMP: The GMP for iValue Infosolutions IPO is ₹3, reflecting a 1% gain over the issue price, according to Chittorgarh.com (as of September 21).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

On Day 2, iValue Infosolutions IPO saw total subscription reach 0.89 times, with QIBs finally stepping in at 1.22x subscription. Retail investors stayed subdued at 0.85x while NII participation lagged at just 0.55x. Adding to concerns, the GMP fell sharply from ₹15 on Day 1 to ₹8, hinting at limited listing gains and a cautious approach by investors toward the issue.

Highlight of Day 1 of the IPO

On the first day, iValue Infosolutions IPO registered a total subscription of just 0.28 times with retail investors leading at 0.46 times, while non-institutional buyers subscribed 0.23 times. QIB segment showed zero subscription, reflecting weak institutional appetite. The grey market premium held steady at ₹15, indicating a 5% premium on the issue price but no upward momentum. This cautious start reflects investor hesitation despite iValue’s growth prospects.

What Does iValue Infosolutions Do?

iValue Infosolutions is like a middle layer between global tech makers and large companies in India. It doesn’t build its own products but works with 109 global OEMs (makers of IT hardware and software) and 804 system integrators to deliver end-to-end solutions for enterprises.

Its main focus areas are:

• Cybersecurity (46.9% of FY25 gross sales) – protecting systems and data from cyberattacks
• Information lifecycle management (22%) – ensuring secure storage and usage of data throughout its life
• Data center infrastructure (17%) – providing tools for enterprises to scale and manage digital workloads

The remaining revenue case from offerings, including ALM, cloud, customer solutions, and associated services. By FY25, the company had served 2,877 enterprise customers across BFSI, IT, manufacturing, and government. Out of this, about 87.5% of its sales came from India itself.

Objectives of the IPO

Since the entire IPO is an offer for sale, iValue will not get fresh funds. Existing shareholders, including promoters Sunil Kumar Pillai, Krishna Raj Sharma, Srinivasan Sriram, and Sundara (Mauritius) Limited, will be selling their shares. This means there is no immediate capital infusion into expansion from the IPO funds.

Strengths:

• Revenues (gross sales billed) grew at a 16.1% CAGR from ₹1,811 crore in FY23 to ₹2,439 crore in FY25. Profits rose from ₹60 crore to ₹85.3 crore in the same period.
• Customers increased from 1,804 in FY23 to 2,877 in FY25. System integrators' billed rose from 567 to 804 in two years.
• Debt coverage ratio is strong at 6.55x in FY25, meaning the company earns more than 6 times what it needs to pay its debt obligations.
• In FY25, every system integrator generated about ₹3.03 crore in gross sales, showing strong partner efficiency.

Risks:

• Top 10 OEMs contribute over 63% of gross sales. Any fallout can impact business, as contracts can be terminated in as little as 10–60 days.
• Receivables stood at ₹846 crore in FY25, with 125 Days Sales Outstanding. That means on average, cash is tied up for about 4 months. Even though 90% is insured, delays can squeeze liquidity.
• The company had 34% attrition in FY25. For every 100 workers, 34 left. This increases rehiring and training costs.
• Since this IPO brings no fresh money, expansion will need to rely on internal accruals or future debt.

For detailed information, visit iValue Infosolutions’ IPO page.

Peer Comparison

There is no listed Indian peer with the same business model. Globally, Multi Chem Limited is considered a peer, and it trades at a P/E of 10.15x, much lower than iValue’s 18.7x. This makes iValue look relatively expensive compared to its global counterparts, though investors appear to be paying a premium for its positioning in India’s IT distribution market.

IPO Valuation

At the upper price band, iValue is valued at around ₹1,600 crore market cap. Key metrics:

• P/E ratio: 18.71x (investors are paying ₹18.7 for every ₹1 of FY25 earnings). This is on the higher side compared to global peers.
• EV/EBITDA: 11.81x, another sign it is not cheap.
• EV/Revenue: 1.65x.

Simply put, investors are paying a premium for iValue’s niche business, but the absence of a fresh issue weakens the growth pitch.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind iValue Infosolutions

iValue is led by a team with long-standing experience in the Indian IT space.

• Sunil Kumar Pillai (Chairman & MD): Over 23 years in the software solutions industry, co-founded iValue in 2008. He earned ₹1 crore in FY25 and is known for his focus on channel-driven growth, previously worked at WeP Solutions.
• Krishna Raj Sharma (Executive Director): 32 years of experience, co-founder. Played key roles in expanding the OEM partnerships. He drew ₹73 lakh in FY25.
• Srinivasan Sriram (Chief Strategy Officer): Also co-founder, brings years of tech industry expertise. Remunerated ₹83 lakh in FY25.
• Shrikant Shitole (CEO): Joined in 2022, previously worked with Cisco and Symantec. Brings global cybersecurity and software expertise, with FY25 compensation of ₹2.2 crore.

Together, the leadership team balances entrepreneurial background and global corporate experience. Notably, CFO Venkata Naga Swaroop Muvvala has a personal loan of ₹6 crore from the company.

Industry Outlook

iValue operates in India’s IT Transformation market, which is growing fast. Globally, the industry size is expected to triple from $1,076 billion in 2024 to $3,380 billion by 2030 (21% CAGR). In India, growth is even faster at 23% CAGR, driven by digitalization, cybersecurity needs, and government investments. Segments such as cybersecurity ($16 billion) and data centers ($40 billion) will be key growth drivers by 2030.

Challenges include a shortage of skilled IT professionals, intense competition in distribution, and over-reliance on OEMs for products. But the overall demand tailwinds remain strong.

Who’s Making Money via the IPO OFS: Selling Shareholders

The iValue Infosolutions IPO is entirely an Offer for Sale, and what stands out is how the proceeds are being split among promoters, early investors, and key management members. The largest chunk goes to Sundara (Mauritius) Limited, an institutional investor, which is cashing out ₹329.3 crore but with a muted multiple of just 4.3x on its investment.

Among the promoters, Krishna Raj Sharma and Srinivasan Sriram are each encashing ₹34.8 crore and ₹27.5 crore, while Sunil Kumar Pillai is selling shares worth ₹22.8 crore. While their reported “return multiples” (ranging from 94x to 111x) may look unusual when compared with those of investors, it is a function of them being early-stage founders who acquired shares at extremely low historical costs. Simply put, IPO pricing at ₹284–₹299 translates to multibagger paper returns for promoters versus their initial acquisition cost.

Alongside them, long-time executives like Subodh Anchan (₹17.7 crore), Roy Abraham Yohannan (₹14.3 crore), and L Nagabushana Reddy (₹13.5 crore) are also monetizing part of their holdings, crystallizing sizeable wealth after years of building the business. Interestingly, the company’s CFO, Venkata Naga Swaroop Muvvala, is tendering shares worth ₹13.2 crore, though with a lower return multiple of just 4x, likely because of a later-stage equity grant compared to the founders. Overall, the OFS shows promoters and the leadership team taking some money off the table after nearly two decades, while the private equity backer Sundara is exiting with limited upside, reflecting the difference between founder-level ownership economics and institutional investment returns.

Analyst View

iValue Infosolutions continues to stand out as a niche play in enterprise technology distribution with deep partnerships and a profitable track record. However, the subscription pattern highlights an important risk-while institutional participation has just begun to pick up, retail and NII demand remain subdued even after two days. The sharp fall in GMP from ₹15 to ₹8 raises further doubts on near-term listing sentiment.

From a valuation angle, the IPO still appears expensive compared to peers, and the lack of fresh issue proceeds may limit immediate growth visibility. On the positive side, iValue’s position in digital transformation makes it attractive in the long run. But the Day 2 trends suggest that investors should be prepared for near-term volatility and possibly muted listing gains compared to earlier expectations.

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Disclaimer

Source: iValue Infosolutions' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.