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BACKGROUND

IValue Infosolutions Limited (IIL) works as Value added Distributer (VAD) for System Integrators (SI) to understand enterprise customer’s business and their technical requirements, then curate customized solutions including multi-OEM stacks where solutions from multiple OEMs interact with each other. It also assist in procurement and deployment of the required technology solutions by partnering with OEMs, across cybersecurity, information lifecycle management (ILM), data center infrastructure, application lifecycle management (ALM), hybrid cloud solutions and other domains. Co operates across India, the SAARC region, and Southeast Asia

Details of the Issue

The issue is entirely an offer for sale of 1.87 cr shares of Rs. 560.29 cr.

Investment Rationale

1. Well-positioned to capitalize on growth in Indian Enterprise Technology Solutions market.

2. Preferred strategic technology advisor for enterprise technology requirements. 3. Partner of choice for OEMs in India.

Risks

* Co faces competitive pressure from resellers and other VADs, and failure to maintain and expand its relationship with existing System Integrators or attract new ones could materially and adversely affect the business.

* High Receivables pose risk- Co is exposed to credit risk and may be exposed to delays or defaults in payments by System Integrators adversely affecting cash flows and financials.

Valuation and Recommendation

IValue systems is very well positioned itself as a connecting point in the industry value chain bridging the gap between OEMS and System Integrators. Moreover, it has presence in growing segments like cyber security and data centers which are poised for good growth. Gross sales of the Co have grown at a cagr of 16% during FY23-25 with improvement in margins and healthy return ratios. At Upper price band, issue is priced at P/E of 18.8x FY25 earnings and we recommend ‘Subscribe’ citing good industry growth expectations.

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SEBI Registration number is INH00000176