Innovatiview India Limited, a Noida-based technology-driven company specializing in automated security and surveillance solutions for examinations, elections, and large-scale events, filed its Draft Red Herring Prospectus (DRHP) with SEBI on February 13, 2025, for a ₹2,000 crore Initial Public Offering (IPO). The IPO is entirely an Offer-For-Sale (OFS) of equity shares with a face value of ₹5 each, meaning the company will not receive any proceeds, and all funds will go to the selling shareholders.
Key Details of the IPO:
- Offer Structure:
- Ashish Mittal and Ankit Agarwal will each sell shares worth up to ₹800 crore.
- Vishal Mittal will offload shares worth up to ₹320 crore.
- Abhishek Agarwal will sell shares worth up to ₹80 crore.
- Book Running Lead Managers: DAM Capital Advisors, ICICI Securities, JM Financial, Motilal Oswal Investment Advisors, and Shannon Advisors Pvt Ltd.
- Registrar: MUFG Intime India.
- Listing: The equity shares are proposed to be listed on the BSE and NSE.
- IPO Timeline: The IPO date and price band are yet to be announced, with SEBI approval pending. SEBI typically takes 4-6 weeks to review a DRHP, though it may take longer if amendments are required.
Company Overview:
- Market Leadership: Innovatiview holds a 73.7% market share in India’s examination-integrated security solutions segment as of September 30, 2024, with a year-on-year market share growth of 69.07% in FY24.
- Services: The company provides AI-integrated CCTV surveillance, touchless biometric verification, GPS tracking, VoIP communication systems, and physical security solutions like frisking for examinations, elections, and large-scale events. It serves clients like the National Testing Agency (NTA), one of India’s largest entrance exam bodies.
- Operational Reach: Operates across 28 states and 8 union territories with over 4,600 partners, ensuring scalability through an asset-light model.
- Financial Performance:
- FY24: Revenue of ₹638 crore (up from ₹380.73 crore in FY23) and profit after tax (PAT) of ₹196.72 crore (up from ₹114.56 crore in FY23).
- Six months ended September 30, 2024: Revenue of ₹485 crore and PAT of ₹131 crore.
- Revenue CAGR (FY22-FY24): 64.61%; PAT CAGR: 87.13%.
- Net debt as of September 2024: ₹198 crore.
Market Position and Growth Drivers:
- Innovatiview is a pioneer in integrating AI and cloud computing into security frameworks, offering solutions like biometric access control and real-time monitoring.
- The company benefits from high entry barriers in the security and surveillance sector, driven by the growing demand for examination security, election surveillance, and event management, fueled by increasing competitive exams and fraud prevention needs.
- Post-pandemic growth in election security and the adoption of advanced technologies like AI-based surveillance strengthen its competitive edge.