IPO Details
The IPO is priced at ₹640 to ₹675 per share, opens on July 29, 2025, and closes on July 31, 2025. The company is raising ₹1,300 crores via IPO, with ₹500 crore through fresh issue and ₹800 crore through offer for sale (OFS).
Company Strengths & Business Prospects
Market Leadership
Aditya Infotech claims to be the largest Indian-owned player in the video security and surveillance market, with a 20.2% market share in FY24. The company operates under the “CP PLUS” brand and has over 30,000 channel partners, 1,800+ System Integrators, and 54 branch offices across India.
Strong Financial Performance
Revenue increased by 12% from ₹2,795.96 crores in March 2024 to ₹3,122.93 crores in March 2025, while PAT surged by 205% from ₹115.17 crores to ₹351.37 crores.
Impressive Dividend Policy
The company has paid high dividends of 162.80% (FY23), 176% (FY24), and 164% (FY25).
Strong Anchor Investment
The company raised over ₹582 crore from anchor investors ahead of the public offering, indicating institutional confidence.
Investment Considerations
Positive Factors
- Market Leadership: Dominant position in India’s growing surveillance market
- Strong Growth: 205% PAT growth shows operational efficiency improvements
- Extensive Distribution: Wide network provides a competitive moat
- High Dividends: Consistent high dividend payouts indicate strong cash flows
- Growing Market: Increasing security concerns drive surveillance demand
Risk Factors
- Mixed Analyst Views: SBI Securities suggests avoiding the IPO while Arihant Capital and Swastika remain positive
- High Valuation: Need to analyse if current pricing reflects fair value
- Competitive Market: The Technology sector faces rapid changes and competition
- Cyclical Nature: Security spending can be cyclical based on economic conditions
No Listed Peers: The company has no direct listed peers for comparison, making valuation assessment challenging.
Investment Recommendation
Moderate to Positive Outlook with the following considerations:
For Conservative Investors
- Wait for listing and potential correction before investing
- The company shows strong fundamentals, but IPO pricing needs evaluation
For Growth Investors
- Strong market position and growth trajectory are attractive
- Rising surveillance market demand supports long-term prospects
Key Factors to Monitor
- Subscription Numbers: Strong subscription indicates market confidence
- Grey Market Premium (GMP): Current market sentiment indicator
- Listing Performance: Initial market reaction
- Quarterly Results: Sustainability of growth momentum
Key Indicators
Aditya Infotech appears to be a fundamentally strong company with:
- ✅ Market leadership position
- ✅ Strong financial performance
- ✅ Growing surveillance market
- ✅ Extensive distribution network
However, investment decisions should consider:
- ⚠️ IPO pricing vs intrinsic value
- ⚠️ Mixed analyst recommendations
- ⚠️ Market conditions at listing
Suggestion: Consider applying for the IPO if you believe in the long-term growth story of India’s surveillance market, but be prepared for potential listing volatility. For risk-averse investors, waiting for post-listing price stabilisation might be prudent.
Disclaimer: This analysis is based on available public information. Please consult with a qualified financial advisor and conduct your own research before making investment decisions.