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Business Standard
16 hours ago
- Business
- Business Standard
Aditya Infotech IPO subscribed 6.87 times
The offer received bids for 7.71 crore shares as against 1.12 crore shares on offer. The initial public offer of Aditya Infotech received bids for 7,71,16,314 shares as against 1,12,23,759 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (30 July 2025). The issue was subscribed 6.87 times. The issue opened for bidding on 29 July 2025 and it will close on 31 July 2025. The price band of the IPO is fixed between Rs 640 and 675 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof. The IPO includes a new issue of Rs 400 crore and a sale offer of Rs 800 crore. From the new issue proceeds, Rs 375 crore will be used to repay, prepay, or fully redeem some of the company's borrowings. The rest of the amount will go toward general corporate purposes. Aditya Infotech (AIL) is a leading provider of video surveillance products and solutions in India under the CP Plus brand. The company offers a wide range of security systems, including IoT cameras, HD analog systems, AI-powered surveillance, and smart home solutions. AIL serves sectors like banking, real estate, defense, and retail through a distribution network of over 1,000 distributors and 2,100 system integrators across 550+ cities. Its operations are supported by 41 branch offices, 13 RMA centers, 10 warehouses, and a manufacturing facility in Kadapa, Andhra Pradesh, with an annual capacity of 17.2 million units. In September 2024, AIL acquired Dixon Technologies stake in their manufacturing joint venture to strengthen in-house production capabilities. Ahead of the IPO, Aditya Infotech on Monday, 28 July 2025, raised Rs 108.03 crore from anchor investors. The board allotted 86.26 lakh shares at Rs 675 each to 54 anchor investors. The firm reported a consolidated net profit of Rs 351.37 crore and sales of Rs 3,111.87 crore for the twelve months ended on 31 March 2025.
Hans India
2 days ago
- Business
- Hans India
Aditya Infotech Raises ₹582 Cr from Anchor Investors Ahead of ₹1,300 Cr IPO
Aditya Infotech, maker of CP Plus security products, raised ₹582 crore from 54 anchor investors on July 28, 2025, a day before its IPO opened. Shares were priced at ₹675 each. Major investors included the Government of Singapore, HDFC MF, SBI MF, and Goldman Sachs. The ₹1,300 crore IPO includes a ₹500 crore fresh issue and an ₹800 crore offer for sale. The price band is ₹640–₹675. The IPO runs from July 29 to July 31, and listing is expected on August 5. Proceeds of ₹375 crore will be used to repay debt (₹405 crore as of March 2024). The rest will go toward general business purposes. The company sells security solutions under CP Plus, serving both homes and enterprises. The IPO allotment: 75% for institutions, 15% for HNIs, and 10% for retail. ICICI Securities and IIFL Securities are the lead managers.
Business Standard
2 days ago
- Business
- Business Standard
Aditya Infotech IPO subscribed 2.04 times
The offer received bids for 2.29 crore shares as against 1.12 crore shares on offer. The initial public offer of Aditya Infotech received bids for 2,29,51,676 shares as against 1,12,23,759 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (29 July 2025). The issue was subscribed 2.04 times. The issue opened for bidding on 29 July 2025 and it will close on 31 July 2025. The price band of the IPO is fixed between Rs 640 and 675 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof. The IPO includes a new issue of Rs 400 crore and a sale offer of Rs 800 crore. From the new issue proceeds, Rs 375 crore will be used to repay, prepay, or fully redeem some of the company's borrowings. The rest of the amount will go toward general corporate purposes. Aditya Infotech (AIL) is a leading provider of video surveillance products and solutions in India under the CP Plus brand. The company offers a wide range of security systems, including IoT cameras, HD analog systems, AI-powered surveillance, and smart home solutions. AIL serves sectors like banking, real estate, defense, and retail through a distribution network of over 1,000 distributors and 2,100 system integrators across 550+ cities. Its operations are supported by 41 branch offices, 13 RMA centers, 10 warehouses, and a manufacturing facility in Kadapa, Andhra Pradesh, with an annual capacity of 17.2 million units. In September 2024, AIL acquired Dixon Technologies stake in their manufacturing joint venture to strengthen in-house production capabilities. Ahead of the IPO, Aditya Infotech on Monday, 28 July 2025, raised Rs 108.03 crore from anchor investors. The board allotted 86.26 lakh shares at Rs 675 each to 54 anchor investors. The firm reported a consolidated net profit of Rs 351.37 crore and sales of Rs 3,111.87 crore for the twelve months ended on 31 March 2025.
India Today
2 days ago
- Business
- India Today
Aditya Infotech IPO open for bidding: Should you subscribe? Check GMP
The initial public offering (IPO) of Aditya Infotech Limited has opened for subscription on Tuesday, July 29. The company, known for its CP Plus brand in video surveillance, is looking to raise Rs 1,300 crore through the bidding window will remain open till July 31, 2025. Aditya Infotech IPO consists of a fresh issue worth Rs 500 crore and an offer for sale (OFS) of shares worth Rs 800 crore by promoter group band for Aditya Infotech IPO has been fixed at Rs 640 to Rs 675 per share. Retail investors can bid for a minimum of 22 shares, requiring an investment of Rs 14,080. For non-institutional investors (NIIs), the small NII minimum is 14 lots (308 shares), and for big NIIs, it is 68 lots (1,496 shares). Aditya Infotech is a key player in the Indian video security and surveillance market and operates under the well-known CP Plus brand. It offers products, services and solutions in the security infrastructure space. The company has attracted attention due to its strong brand presence and increasing PERFORMANCE AND VALUATIONSThe company has shown steady revenue growth. In FY23, it posted revenue of Rs 2,782 crore, which rose to Rs 3,112 crore in FY25. However, the most notable growth was in net profit, which jumped from Rs 1,151 crore in FY24 to Rs 3,513 crore in FY25. This was mainly due to better to an IPO report from Bajaj Broking, the return on equity (ROE) for FY25 stands at 34.5%, while return on capital employed (ROCE) is 33.3%. The debt-to-equity ratio is 0.41x, which is seen as a conservative level. Based on FY25 annualised earnings, the issue is priced at a price-to-earnings (P/E) ratio of 20.44. However, if FY24 earnings are considered, the P/E rises to 60.05, making it a bit expensive.'While the company has delivered strong profit growth, investors should be aware of the narrow focus of the business. The hardware sector is competitive, and technology keeps changing rapidly,' said Jickson Sajee, Research Analyst at INVasset also pointed out that promoter holding will reduce from 93% to around 77% post-listing, which improves liquidity but still reflects tight MARKET PREMIUM AND LISTING DETAILSThe grey market premium (GMP) for Aditya Infotech's IPO was last recorded at Rs 255 on July 29, 2025. This suggests an expected listing price of Rs 930 per share, which is nearly 38% higher than the upper end of the price band. Market watchers believe this indicates healthy investor interest in the IPO allotment is likely to be finalised on Friday, August 1, 2025. The shares are expected to be listed on both the BSE and NSE on Tuesday, August 5, Securities Limited is the lead manager for the IPO and MUFG Intime India Private Limited (Link Intime) is acting as the registrar.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends advertisement
Mint
3 days ago
- Business
- Mint
Aditya Infotech IPO: Dixon was allotted shares at ₹340 apiece. Should you pay double?
Aditya Infotech, India's largest distributor of video surveillance products, is set to raise ₹1,300 crore through its upcoming initial public offering (IPO). The IPO comprises a fresh issue of ₹500 crore and an offer-for-sale of ₹800 crore by the promoters. Following the listing, the promoters' stake will decline to 77% from 93%. Dixon Technologies, an existing investor, will continue to hold a 7% stake, while public shareholders will own the remaining 24%. Aditya Infotech is well known for its in-house CP Plus brand, a well-established Indian brand in the security and surveillance industry. It also serves as the exclusive distributor for Dahua Technology, a global leader in video surveillance systems. The IPO opens on 29 July, with a price band of ₹640– ₹675 per share, valuing the company at ₹7,912 crores at the upper end of the price band. At the heart of the issue lies a move to reduce leverage. Of the fresh issue, ₹375 crore is earmarked for debt repayment, with the rest to be used for general corporate purposes. While the debt reduction improves the optics on financial discipline, the real story may lie elsewhere. In India's still-underrated electronic security and surveillance market, what sets Aditya Infotech apart, and what should investors know as the company makes its public debut? How dominant is CP Plus in Aditya Infotech's portfolio? Aditya Infotech operates in a highly organized surveillance market, where 90% of the industry share is held by formal players. The company leads the pack, with a 21% revenue market share in FY25. It manufactures and sells its CP Plus brand, and exclusively distributes products from China's Dahua Technology. It generates revenue primarily from one-time sales of each product unit. Together, CP Plus and Dahua accounted for 94% of the company's ₹3,112 crore revenue in FY25, with CP Plus contributing 69%, and Dahua (25%). The higher share of CP Plus helps reduce reliance on third-party brands. Aditya Infotech has also begun offering services and solutions to build recurring revenue streams. For instance, CP Plus AI solution, powered by SparkCognition, offers video analytics capabilities on a subscription basis. How diversified is Aditya Infotech's product portfolio? Its product range spans commercial (thermal solutions, interactive displays), consumer (dash cams, Wi-Fi doorbells) and surveillance products, including digital video recorders (DVRs) and Power over Ethernet (PoE). However, its designs and products are not patented, making it vulnerable to imitation and potential loss of competitive edge. Its products are used across banking, healthcare, education, law enforcement, hospitality, smart traffic, industrial and retail sectors. Surveillance products such as CCTV cameras made up 79% of revenue, while the rest 21% came from accessories like routers, cables, and monitors. Is Aditya Infotech's rising inventory a concern? With an annual manufacturing capacity of 17.2 million units, Aditya is the world's third-largest manufacturer of surveillance products. Capacity utilization stood strong at 77%, reflecting steady demand. However, the utilization has increased slightly from 73% in FY23. At the same time, inventory levels in FY25 rose 71% to ₹871 crores compared to FY24, indicating either weaker-than-expected demand or a buildup in anticipation of stronger demand ahead. If demand is weak, high inventory may strain working capital and hurt margins. If strategic, it could aid faster deliveries, but it risks overestimating demand. How exposed is Aditya Infotech to supplier concentration risks? Further, supplier concentration risk remains high, with AIL Dixon (a joint venture between Dixon Technologies and Aditya Infotech) supplying 52% of materials consumed, 85% of which are sourced from outside India. Also, the top five suppliers supply 92% of the raw materials. This exposes it to both supplier concentration and geographic risk. By contrast, the company's localization strategy offers some comfort. About 85% of the CP Plus product line is manufactured in India, with 96% of materials sourced from India. In addition, only 4% of its components are imported, significantly lower than AIL Dixon. How balanced is Aditya Infotech's regional exposure? The company's distribution network is one of its biggest strengths. It sells through over 1,000 distributors and runs 69 exclusive CP Plus Galaxy stores across 550 cities and towns. A dominant 80% of sales come via distributors, while online marketplaces contribute only 2.5%. The business is primarily concentrated in India, with 99.68% of its revenue derived from domestic sales. Its domestic revenue is fairly diversified—North India leads with 39%, followed by the West (26%), South (20%), and East (15%). This reduces reliance on any single region. Is low client concentration a strength or a risk? Client concentration remains low. The top client contributed just 4% of FY25 revenue. The top five contributed 12%, and the top 10 made up 19%—down from 21% in FY23. Most customer relationships are long term, with the top 10 customers having a relationship of over 6 years, including Bright Computers, IR Focus CCTV, Kiran Electro Systems and Wasp Infotech. However, it does not enter into long-term contracts with customers nor does it have any specific agreements. This means that Aditya's order volumes are subject to changes in customer demand, pricing terms or competition. As a result, the company must continuously invest in customer acquisition and channel relationships to maintain its sales momentum. To this end, it is focusing on a service-based model and enterprise customers, to secure and grow customer relationships with large corporates. Could rising warranty claims dent Aditya Infotech's margins? While the company hasn't specified the exact duration of its warranty, it remains liable for claims arising from faulty or defective CP Plus products. In contrast, warranties and post-sales services for Dahua products are handled directly by Dahua. Warranty claims have also increased in line with the rising sales volumes. Product service and warranty expenses grew from ₹9.5 crore (0.42% of revenue) in FY23 to ₹14.8 crore (0.48%) in FY25. While the numbers are not large, a rise in claims could still impact margins and profitability. Also, Aditya Infotech does not have an insurance policy to cover warranty expenses, so any payout exceeding its reserves could affect its financial position. What's holding back Aditya Infotech's net profitability? Aditya Infotech has posted strong revenue growth, with topline rising 36% from ₹2,296 crores in FY23 to ₹3,112 crore in FY25, led by higher volumes across product categories. Profitability also improved at the operating level. Ebitda rose 43% to ₹258 crores, up from ₹181 crores in FY23, as margins expanded by 38 basis points to 8.27%. Even though Aditya Infotech has no listed peer, its margins are modest compared to the 20.7% margin of unlisted competitor Prama Hikvision. At the same time, smaller player Samriddhi Automations operates at a lower 5.4% margin. This places Aditya Infotech somewhere in the middle of the segment. However, the picture looks weaker at the profit after tax (PAT) level. Despite topline growth and better operating performance, adjusted PAT (before exceptional items) fell 10% to ₹103 crores in FY25, from ₹114 crores in FY23, as PAT margins contracted by 168 basis points to 3.3%. This decline was driven by a sharp increase in expenses. Employee benefit expenses doubled to ₹203 crores, while other expenses surged 80%, and depreciation expenses rose nearly four-fold. We have used PAT before exceptional items throughout to exclude the impact of gain of ₹249 crore arising from fair valuation in FY25. The return ratios remained moderate too. Return on equity stands at 10%, while return on capital employed is at 16%. The company also carries some debt on its books. As of May 31, 2025, outstanding debt stood at ₹423 crores, with ₹42 crores paid in finance costs during FY25. However, ₹375 crores from the IPO proceeds will go towards debt repayment, providing a near-term boost to the bottom line in FY26. Is the surveillance boom already baked into Aditya's valuation? Aditya Infotech's numbers are reasonable but not high enough to justify the premium the company is seeking. The IPO implies a price-to-earnings multiple of 77 times, which looks rich given its average return ratios, muted profitability. Notably, the IPO pricing is almost double that of ₹340 per share, the price at which they were allotted to Dixon in September. Even so, Aditya Infotech is well-placed to benefit from the rapid growth in India's video surveillance sector. The sector is expected to grow at 16.5% annually, from ₹106 billion in FY25 to ₹227 billion in FY30. The number of units sold is also expected to double from 40 million to 75 million by that time. But the valuation leaves little margin of safety, even if the growth story holds. For more such analysis, read Profit Pulse. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
