Infinity Infoway coming with IPO to raise Rs 24.42 crore

Infinity Infoway

• Infinity Infoway is coming out with an initial public offering (IPO) of 15,75,200 equity shares in a price band of Rs 147-155 per equity share.
• The issue will open on September 30, 2025 and will close on October 3, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 14.70 times of its face value on the lower side and 15.50 times on the higher side.
• Book running lead manager to the issue is Holani Consultants.
• Compliance Officer for the issue is Bhartiben Girdharbhai Ajudiya.

Profile of the company

The company is a Software as a Service (SaaS) company primarily engaged in the business of providing customized and integrated Enterprise Resource Planning (ERP) solutions to clients across various sectors, including education, manufacturing, retail, and construction. In addition to its education and industrial ERP solutions, it also provides ‘Online Examination System’ (OES) system to educations institutions like schools, colleges and universities to administer exams and distribute question papers to students. It has also developed a self-learning platform ‘Brainzorg’ wherein it sells digital education courses to all classes of students on topics covered in their current education standard.

Its ERP software offerings are structured across various modules such as Supply Chain Management (SCM), Customer Relationship Management (CRM), and others. The company deploys its ERP software at its clients’ servers and also enters into long term contracts with its clients for the maintenance and ensuring the smooth functioning of the software installed. The company revenue model for the ERP software comprises of (1). Fee on Deployment of New Software and (2) annual maintenance Contract (AMC) for the ERP software deployed.

Its primary focus is on the education sector, which forms a significant part of its ERP business. One of its key ERP products is a tailor-made ‘Campus Management System’ that manages end-to-end core academic and administrative functions of universities including student information tracking, attendance, assignment monitoring, examination scheduling, and overall academic performance tracking. In its Campus Management System, every student gets their unique login credentials allotted to them through which they can login in the universities website and assess their progress and prepare their schedules accordingly.

Proceed is being used for:

• Development of Proprietary Technology Solution called ‘ZEROTOUCH DaaS’ (Device as a Service) (Proposed Project)
• Purchase of new IT infrastructure and certification
• Funding of Tender Deposits and Earnest Money Deposits (EMD) towards Tenders
• Funding the incremental Working Capital Requirements of the company 
• Meeting general corporate expenses

Industry Overview

By 2025, the IT sector is predicted to have contributed 10% of India's GDP, up from 7.4% in FY22. With industry after industry adopting cutting-edge digital applications, India is now well up for the next stage of its IT revolution. The market for ERP software includes programs that help businesses manage, integrate, and maximize key company operations involving resources including people, money, capital, supplies, and orders. These software programs aid businesses in improving productivity, streamlining internal business procedures, and arriving at better judgments.

The ERP software market in India has expanded rapidly in recent years, owing to a variety of factors such as rising demand for business process automation and digitization, the need for improved data management and analytics capabilities, and the increasing availability of cloud-based ERP solutions. Revenue in the Enterprise Resource Planning Software market is projected to reach $0.71 billion in 2024.Revenue is expected to show an annual growth rate (CAGR 2024- 2028) of 10.01%, resulting in a market volume of $1.04 billion by 2028.

India is the most popular offshore location for IT companies worldwide. Top IT firms in India now have a whole new range of opportunities thanks to developing technology, after demonstrating their ability to provide both on-shore and off-shore services to clients worldwide. By 2025, the Indian IT and business services sector is projected to reach a value of $19.93 billion. In 2023, India is projected to spend $144 billion on information technology. Widespread cloud use has the potential to boost India's GDP by $380 billion and create jobs for 14 million people by 2026.

Pros and strengths

AI enabled products developed in line National Education Policy-2020: The Government of India is striving to change the existing old education system and developed new scheme to ensure best of education to students in line with latest development in the world. In this regard has come up with India's transformative National Education Policy (NEP) which call for modernization and innovation in the education sector. The company has developed NEP-enabled ERP products integrated with cutting-edge Artificial Intelligence (AI) capabilities. These solutions are meticulously crafted to address the evolving needs of educational institutions in the digital age, facilitating seamless management, enhanced efficiency, and personalized learning experiences.

Ensuring successful ERP implementation: The company has a proven track record of excellence and success in ERP implementation across colleges and universities nationwide. In the last three fiscal years reported in its offer document, the company has deployed ‘Campus Management System’ in 26 universities across India and has active annual maintenance Contracts (AMC) in place with 22 universities, ensuring ongoing support and operational continuity of the software solutions provided.

Robust products & services: Its commitment to excellence is evident in its robust portfolio of products and services designed to empower educational institutions at every level. From comprehensive ERP solutions to tailored consulting services, it offers a holistic approach to education management, driving efficiency, innovation and success.

Risks and concerns

Maximum revenue comes from top 10 customers: It depends on a limited number of customers, which exposes it to a high risk of customer concentration. Its top customers may vary from period to period depending on the demand and thus the composition and revenue generated from these customers might change as it continues to add new customers in the normal course of business. The company is dependent on and derives 63.44%, 83.47% and 71.45% of its revenue from its top 10 key customers for the Fiscal Year 2025, 2024 and 2023 respectively. Delay or Cancellation of orders by any one or all of its top customers could have a material and adverse effect on its business, results of operations and financial condition.

Maximum revenue comes from State of Gujarat: A major part of its total revenue from operations is generated from the State of Gujarat which accounts for 93.16%, 93.03% and 76.76% respectively, of its total revenue from operations for the Fiscal Year ended on March 31, 2025, 2024 and 2023. Due to the geographic concentration of the revenue from operations generated from Gujarat, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances. Consequently, any significant social, political or economic disruption, or natural calamities or civil disruptions in this region, or changes in policies of the state or local governments or the government of India or adverse developments related to competition in this region, may adversely affect its business, results of operations, financial condition and cash flows.

Intense competition: It operates in a competitive industry that experiences rapid technological developments, and changes in customer requirements. Its competitors include the big E-Learning and Global System Integrators, in addition to some mid-sized, and several smaller local competitors in the various geographic markets in which it operates. It may face competition from companies that grow in size or scope as the result of strategic mergers or acquisitions, which may result in larger competitors with significant resources that benefit from economies of scale and scope. Such events could have a variety of negative effects on its competitive position and its financial results, including reducing its revenue, increasing its costs, and lowering its gross margin percentage.

Outlook

Infinity Infoway is a SaaS company majorly involved in the business of providing customized and integrated online ERP Software for industries like manufacturing, education, retail, construction, supply chain management (SCM), customer relationship management (CRM), sales force and many more. It specializes in providing all around software solutions through its services such as Campus Management System and Infinity Enterprise Resource Planning. Its clientele includes many universities, school and small companies across India. On the concern side, the company requires significant amounts of working capital for continued growth. Its inability to meet its working capital requirements may have an adverse effect on the results of operations. Further, failure to manage its inventory could have an adverse effect on its sales, profitability, cash flow and liquidity. 

The company is coming out with a maiden IPO of 15,75,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 147-155 per equity share. The aggregate size of the offer is around Rs 23.16 crore to Rs 24.42 crore based on lower and upper price band respectively. On performance front, the company’s Revenue from Operations has increased by 29.70% to Rs 1,319.23 lakh for fiscal year 2024-25 from Rs 1,017.16 lakh for fiscal year 2023-24. Moreover, the company’s Profit after Tax has increased by 20.92% to Rs 419.15 lakh in fiscal year 2024-25 as compared to Rs 346.62 lakh in fiscal year 2023-24.

Meanwhile, the company proposes to utilise an estimated amount of up to Rs 375.00 lakh from the Net Proceeds towards development of its proprietary technology solution called ‘ZEROTOUCH DaaS’ (Device as a Service) to address the challenges of securing the examination papers from leakage during their preparation, printing and distribution. Currently, in the existing examination system, many people are involved at each step, which increases the risk of the exam papers being leaked or accessed by unauthorized individuals. ‘ZEROTOUCH DaaS’ aims to reduce these risks by cutting down the involvement of people and using technology to handle the process.