IPO closes on 22 Sep'25
Ivalue Infosolutions Ltd
Minimum Investment
₹ 14,950 / 50 shares
Our Verdict:
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- iValue Infosolutions Ltd (iValue) has delivered consistent results over the past three years. The firm has demonstrated scalable growth with a stable cost structure. Its balance sheet remains sound, maintaining a cash-positive status for five years, except for FY23, which experienced negative cash flow due to a one-off event.
- From a valuation standpoint too, the IPO appears fairly priced with a Price-to-Earnings (PE) multiple of 19x based on FY25 earnings.
- The global total addressable market (TAM) for sectors like cybersecurity, ILM, data center infrastructure, ALM and managed services is expected to grow from $1.08 trillion in 2024 to $3.38 trillion by 2030 (CAGR ~21%). In India, TAM is projected to expand from $22.7 billion in 2024 to $78.9 billion by 2030 (CAGR ~23.1%), outpacing global growth. This places India, and iValue, in a strong position to benefit from the ongoing digital transformation.
- While there are risks related to receivables and OEM dependence, these are well-balanced by the growth opportunities in India’s digital transformation.
- With strong fundamentals, an asset-light business model and a focus on high-growth sectors like cybersecurity, hybrid cloud and ALM, iValue has built a sustainable and margin-rich business. Given the fair valuation and favourable industry trends, investors may consider subscribing to the IPO with a long-term investment perspective.
About the company
Founded in
9 Apr'08
Managing director
Sunil Kumar Pillai
- iValue is a technology services provider and value-added distributor (VAD) for leading OEMs, who research, develop and produce technology solution goods and services, and System Integrators (SIs). Its core offering ensures enterprise customers' digital applications and data are secure, scalable, highly available and performance-optimized.
- iValue primarily operates through 4 business segments: (i) Cybersecurity; (ii) Information Lifecycle Management (ILM); (iii) Data Centre Infrastructure; and (iv) application lifecycle management (ALM), Cloud & Others.
- As of 31 March 2025, iValue has a presence across 8 locations in India and 6 international locations: Singapore, Bangladesh, Sri Lanka, UAE, Cambodia and Kenya. Through partnerships with 109 OEMs and a network of 804 SIs, iValue serves 2,877 enterprise customers. Its technology team of 215 employees makes up over 51% of the total workforce.
STRENGTHS
- Consistent Growth: iValue has demonstrated strong performance from FY23 to FY25, achieving a compound annual growth rate (CAGR) of 8% in operating revenue, 21% in EBITDA and 19% in net profit.
- Impressive Return Metrics: iValue boasts robust return ratios. Over the past three years, Return on Equity (ROE) has ranged from 20% to 30%, reflecting strong value creation for shareholders. Similarly, Return on Capital Employed (ROCE) has remained within the 28% to 37% range, demonstrating efficient capital utilization despite expanding operations.
- Margin Expansion: iValue has successfully expanded its margins, with net margin increasing from 7.4% in FY23 to 9.05% in FY25. Its EBITDA margin stands at 14%, reflecting effective cost control and a focus on higher-margin solutions.
- Debt-Free Balance Sheet: iValue maintains a net debt-free profile. The firm’s Net Asset Value (NAV) has grown significantly from Rs 46.99 in FY23 to Rs 77.5 in FY25.
- Strong Partner Ecosystem: iValue has established itself as a preferred partner for OEMs in India. Its OEM network grew from 93 partners in FY23 to 109 in FY25. Notably, 19 of these OEMs have been partners for over 10 years, 38 for over 6 years and 84 for over 3 years as of March 2025.
- Expanding SI Network: iValue has built a large and growing SI network, with high retention and repeat business. Its system integrator network grew from 567 in FY23 to 804 in FY25, with 287 partners having been associated with the company for each of the last three years.
RISK FACTORS
- Dependence on OEMs: iValue relies on global OEMs for a significant portion of its business, with 63.02% of its Gross Sales Billed to Customers in FY25 coming from the top 10 OEMs. Any disruption in product delivery, failure to maintain relationships or changes in pricing and terms with these OEMs could adversely affect the firm’s profitability and reputation.
- Dependence on SIs: A large portion of sales comes from a limited number of SIs, with 8.66% of Gross Sales Billed to Customers in FY25 derived from the top SI. Loss of business or failure to maintain these relationships could negatively impact the firm’s financial performance.
- High Attrition Rate: iValue’s success depends on its ability to attract and retain talent, but it faces a high attrition rate of 34% in FY25. Despite initiatives like the iAcademy program (an in-house training and recruitment programme), high turnover could disrupt growth and operations.
- Rising Trade Receivables: iValue’s trade receivables have increased from Rs 701.6 crore in FY23 to Rs 846.4 crore in FY25. Inability to efficiently collect receivables or defaults in payments could negatively impact cash flow, business operations and overall financial stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 560.29 crore
Fresh Issue
₹ -
OFS
₹ 560.29 crore
Price range
₹ 284 - 299
Lot size
50 shares
Issue Objective
This is a pure Offer for Sale (OFS), meaning the company will not receive any proceeds from the offer. All the proceeds will be received by the Selling Shareholders.
Dates
Bidding open
18 Sep'25
Bidding close
22 Sep'25
Allotment date
23 Sep'25
Refund date
24 Sep'25
Listing
25 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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