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GMP signals robust demand
As of 12:51 p.m. on August 4, the GMP for Aditya Infotech stood at Rs 290-300. Based on the upper end of the IPO price band, this indicates a likely listing price of Rs 975 per share—translating to a potential premium of 44%.
Aditya Infotech IPO allotment and subscription details
The allotment status of the Rs 1,300-crore public issue of Aditya Infotech is expected to be finalised today. The IPO, which was open for subscription from July 29 to July 31, received overwhelming demand across all investor categories and was subscribed 106.23 times overall.
Qualified institutional buyers (QIBs) led the bidding with 140.5 times subscription, followed by non-institutional investors (NIIs) at 75.93 times. Retail investors subscribed 53.81 times their allotted quota.
Aditya Infotech IPO structure and company overview
The IPO comprised a fresh issue of Rs 500 crore and an offer for sale worth Rs 800 crore. Funds raised will be utilised to repay existing debt and for general corporate purposes.
Aditya Infotech, which owns and markets the CP Plus brand, is a leading player in India’s electronic surveillance market. Its strong financial performance, high return ratios, and strong brand recall contributed to heightened investor interest.
Business overview and financials
Aditya Infotech is one of India’s top value-added distributors (VAD) for electronic security equipment. The company partners with global brands such as Dahua, Seagate, TP-Link, and Panasonic, distributing products across 650+ cities through a network of over 15,000 channel partners.
Its product portfolio includes video surveillance systems, access control devices, and networking solutions, serving clients across government bodies, corporates, and SMEs.
Between FY22 and FY24, Aditya Infotech’s revenue grew at a CAGR of 24%, rising from Rs 2,090 crore to Rs 3,212 crore. Profit after tax more than doubled, growing from Rs 102 crore in FY22 to Rs 210 crore in FY24.
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EBITDA margins improved from 9.6% to 10.7% over the same period. However, analysts note that the company operates a working capital-intensive model and remains exposed to global supply chain disruptions.
With allotment nearly complete and grey market sentiment holding strong, all eyes are now on the listing day.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
