Innovision shares drop over 28% in debut trade

Shares of manpower and toll plaza management services provider Innovision Ltd on Monday ended over 28 per cent lower against the issue price of Rs 519. The stock started trading at Rs 466, a decline of 10.21 per cent from the issue price on the BSE. Later, the stock tanked 28.16 per cent to settle at Rs 372.80 -- its lower circuit limit.

At the NSE, it dropped 9.88 per cent to Rs 467.70 at open. Shares of the firm later ended at Rs 374.20, down 27.89 per cent. The company's market valuation stood at Rs 887.76 crore. Benchmark stock indices also plummeted on Monday.

The 30-share BSE Sensex dived 1,836.57 points or 2.46 per cent to settle at 72,696.39. The 50-share NSE Nifty tanked 601.85 points or 2.60 per cent to end at 22,512.65.

The initial public offer of Innovision Ltd was subscribed 3.32 times on the final day of the share sale on Tuesday last week. Innovision Ltd had extended the closing date of its Initial Public Offering (IPO) to March 17 and had also 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 had also revised the price band to Rs 494-519 per share, lower than the earlier band of Rs 521-548 per share, according to an update with the stock exchanges.

The Haryana-based company's IPO had a combination of a fresh issuance of Rs 255 crore and an Offer For Sale (OFS) of 12.38 lakh equity shares. Proceeds from the fresh issuance will be used towards payment of debt, fund 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.