The IPO market is buzzing again, and this time, all eyes are on a company you've probably heard of, even if you don't know its official name. We're talking about Aditya Infotech, the powerhouse behind India's largest video surveillance brand, CP Plus. They're gearing up for a massive ₹1,300 crore IPO, and there's a lot to unpack before you decide if it's the right move for your portfolio.
Key Highlights
- ✓ The Aditya Infotech IPO aims to raise a substantial ₹1,300 crore, opening on July 29, 2025.
- ✓ Its price band is set at ₹640 - ₹675 per share, with a minimum investment of ₹14,080 for a lot of 22 shares.
- ✓ The company showed a massive jump in net profit for FY25, reaching ₹351.4 crore from ₹115.2 crore the previous year.
- ✓ A strong Grey Market Premium (GMP) of ₹220 suggests a potential listing gain of over 32%.
- ✓ An interesting detail: Existing investor Dixon Technologies was allotted shares at just ₹340 apiece, nearly half the IPO's upper price.
Let's Talk Numbers: The IPO Breakdown
Alright, let's get into the nitty-gritty of the offer. The Aditya Infotech IPO is a combination deal. It includes a fresh issue of shares worth ₹500 crore, which means new money is coming into the company for growth. The other part is an Offer for Sale (OFS) of ₹800 crore, where the current promoters are selling some of their stake. After the IPO, the promoters' holding will come down from 93% to a still-significant 77%.
The IPO window is a short one, so mark your calendars. Bidding starts on July 29, 2025, and wraps up on July 31, 2025. The price band is set between ₹640 to ₹675 per share. If you're a retail investor, you'll be bidding in lots, with one lot consisting of 22 shares. This means the minimum investment you'll need to make is ₹14,080, if you bid at the lower end of the price band.
The company has reserved 75% of the offer for Qualified Institutional Buyers (QIBs), which are the big financial institutions. Non-Institutional Investors (NIIs) get a 15% slice, and the remaining 10% is carved out for retail investors like you and me. The shares are expected to be listed on both the BSE and NSE around August 4th or 5th, 2025.
Following the Money: Financial Health and Use of Funds
So, where is all this fresh capital from the IPO going? According to their draft papers, a big chunk—to the tune of ₹375 crore—is earmarked for paying off debt. As of March 2024, the company had total borrowings of around ₹405 crore, so this move will significantly strengthen its balance sheet. The rest of the proceeds will be used for general corporate purposes, which is standard practice.
Now, let's look at the financial performance, because this is where the story gets really compelling. For the fiscal year 2025, Aditya Infotech reported revenue of ₹3,122.9 crore, a healthy increase from ₹2,796 crore in the previous year. But the real showstopper is the net profit. It skyrocketed to an impressive ₹351.4 crore in FY25, a massive leap from the ₹115.2 crore reported in FY24. This incredible growth in profitability is certainly a major factor driving the IPO's buzz.
The Big Guns Are On Board: Anchor Investor Response
A day before the IPO opened to the public, the company locked in a huge vote of confidence from institutional players. Aditya Infotech successfully raised over ₹582.3 crore from its anchor investors. They allotted 86.26 lakh equity shares to 54 different funds at the upper price band of ₹675 per share. This is always a positive sign, as it shows that the "smart money" sees value in the company at the proposed valuation.
The list of anchor investors is like a who's who of the financial world. We're talking about heavyweights like the Government of Singapore, the Monetary Authority of Singapore, Goldman Sachs, and Nomura. On the domestic front, giants like HDFC Mutual Fund, SBI Mutual Fund, and the Abu Dhabi Investment Authority also participated. When such reputable names line up to invest, it definitely adds a layer of credibility to the offer.
Market Sentiment: The GMP Story
For anyone who follows IPOs, the Grey Market Premium (GMP) is an exciting, albeit unofficial, indicator of market sentiment. It's essentially the premium that buyers are willing to pay for the shares in the unofficial market before they are even listed. As of July 28th, the GMP for Aditya Infotech was standing strong at ₹220 per share. This is a very healthy number.
What does this mean in practical terms? If you add the GMP to the upper end of the price band (₹675 + ₹220), you get an estimated listing price of around ₹895. This translates to a potential listing day gain of about 32.59%. Of course, the GMP can be volatile and is not a guarantee, but it certainly shows that there's strong demand and anticipation for a positive listing.
More Than Just an IPO: The Company Behind the Brand
It's important to remember that you're investing in a business, not just a stock ticker. Founded way back in 1995, Aditya Infotech has built a formidable presence in the Indian security and surveillance market. Their brand, CP Plus, is a household name for everything from smart home IoT cameras to advanced HD analog and network cameras for enterprises.
Their product portfolio is quite advanced, including thermal cameras, body-worn cameras, and even sophisticated AI-driven applications like number-plate recognition and people counting. The company's reach is vast, with a footprint in over 550 cities and towns across India. They operate through a network of 41 branch offices, over 1,000 distributors, and more than 2,100 system integrators. This extensive network is a massive competitive advantage and a key part of their growth story.
Conclusion
So, here's the bottom line. The Aditya Infotech IPO has a lot going for it. You have a market leader with a strong brand in CP Plus, an incredible surge in profitability, and a clear plan to reduce debt. The strong demand from anchor investors and a very positive GMP add to the optimistic outlook. However, the valuation is a key point to consider, especially when you see that an existing investor like Dixon Technologies got in at a much lower price.
The company is banking on its strong brand presence and the continued growth in the security sector to justify this premium. For investors, the decision comes down to weighing the robust financials and market leadership against a rich valuation. It's a classic growth-versus-value debate, and it will be fascinating to see how the market responds when the shares list in early August.
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