The long-awaited Aditya Infotech IPO has today commenced on July 29, 2025 and this is a major step forward in the video surveillance world in India. The company, which has a popular brand called CP Plus of security solutions, is issuing this mainboard offering to raise 1,300 crore.
IPO Structure and Key Details
Aditya Infotech has structured its public offering with a price band of ₹640 to ₹675 per equity share. The IPO comprises a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹800 crore by existing promoters. The subscription window remains open until July 31, 2025, giving investors a three-day window to participate.
The allocation structure follows standard IPO norms, with 75% reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for retail investors. Additionally, equity shares worth up to ₹6 crore have been allocated for eligible employees, demonstrating the company’s commitment to its workforce.
Strong Institutional Interest and Grey Market Performance
Prior to the public opening, Aditya Infotech successfully raised over ₹582 crore from anchor investors on July 28, signaling robust institutional confidence in the offering. This substantial anchor allocation indicates strong backing from established financial institutions and mutual funds.
The grey market has responded positively to the IPO, with shares trading at a premium of ₹217 above the upper price band. This translates to an estimated listing gain of approximately 32% for potential investors, though grey market premiums are speculative and don’t guarantee actual listing performance.
Company Profile and Market Position
Aditya Infotech Limited stands as a dominant player in India’s video surveillance market, operating under the well-established ‘CP Plus’ brand. The company offers an extensive range of products, including smart IoT cameras, HD analog and network cameras, thermal cameras, and AI-driven solutions featuring automatic number plate recognition, people counting, and heat mapping capabilities.
With a comprehensive distribution network spanning over 550 cities and towns across India, the company operates 41 branch offices and 13 return merchandise authorization centers. This extensive reach is supported by more than 1,000 distributors across tier I, II, and III cities, ensuring strong market penetration.
Financial Performance and Use of Proceeds
The company’s financial trajectory shows impressive growth, with revenue increasing from ₹2,782 crore in FY24 to ₹3,112 crore in FY25. More notably, profit after tax surged dramatically from ₹1,151 crore to ₹3,513 crore, reflecting improved operational efficiency and margin expansion.
Key financial metrics highlight the company’s strong fundamentals, with Return on Equity (ROE) at 34.5% and Return on Capital Employed (ROCE) at 33.3% for FY25. The debt-to-equity ratio of 0.41x indicates conservative financial management, while EBITDA margins expanded to 8.27%.
From the fresh issue proceeds, approximately ₹375 crore is earmarked for debt repayment, while the remaining funds will support general corporate purposes. This debt reduction strategy should further strengthen the company’s balance sheet and reduce financial costs.
Expert Opinions and Investment Recommendations
Market analysts present mixed views on the IPO’s attractiveness. Anand Rathi has assigned a “SUBSCRIBE – LONG TERM” rating, noting the company’s dominant market position and limited competition. At the upper price band, the company trades at an FY25 P/E ratio of 22.5x, implying a post-issue market capitalization of ₹7,911.89 crore.
Shivani Nyati from Swastika Investmart recommends subscribing, highlighting the company’s pan-India network and growth potential in the expanding surveillance market. However, she notes concentration risks due to dependence on key suppliers like Dahua.
Conversely, some analysts express caution about the valuation. Gaurav Goel from Fynocrat Technologies suggests avoiding the IPO, citing rich pricing with an effective P/E of approximately 77x when excluding one-time gains, leaving little margin of safety for investors.
Market Outlook and Investment Considerations
India’s video surveillance market continues to expand, driven by increasing security concerns, smart city initiatives, and technological advancement. Aditya Infotech’s established market presence and comprehensive product portfolio position it well to capitalize on this growing demand.
However, potential investors should consider the competitive hardware segment and evolving technology cycles that characterize this industry. The company’s ability to maintain its market leadership while adapting to technological changes will be crucial for long-term success.
Subscription Status and Next Steps
The subscription numbers at the early rounds of subscription indicate good investor interest, where the retail segment which constitutes 1.50x subscription was subscribed to by middle of the morning on the first day. The allotment has been slated to be finalized on August 1, 2025, and they plan to list it August 4, 2025, at BSE and NSE.
Its interested investors are able to access the application through ASBA (Applications Supported by Blocked Amount) by submitting application form over bank accounts or online via brokers such as Zerodha, Upstox and Paytm Money.
An investment in the Aditya Infotech IPO may be a good way to invest in the growing and ever so important surveillance and security market in India, but some caution needs to be taken by the investors in deciding whether they should or should not invest in the IPO and what their price expectations are and what is their risk threshold when it comes to making this type of investment.
Aditya Infotech Shares Surge Over 50% on Market Debut
The Indian stock market witnessed another remarkable IPO success story on August 5, 2025, as Aditya Infotech Limited shares made an impressive debut with gains exceeding 50%. Trading under the popular CP Plus brand, this video surveillance and security solutions company has captured significant investor attention with its strong market entrance.
Aditya Infotech shares opened at ₹1,015 on the National Stock Exchange (NSE), representing a substantial 50.37% premium over the issue price of ₹675. The Bombay Stock Exchange (BSE) witnessed an even stronger opening at ₹1,018, marking a 50.81% surge from the IPO price. This exceptional listing performance has delivered impressive returns for investors, with each lot of 22 shares generating profits of ₹22,330.
The company’s ₹1,300 crore initial public offering created a buzz in the investment community between July 29 and July 31, 2025. The overwhelming response was evident as the IPO received subscriptions worth over 100 times the shares offered, with institutional investors showing particularly strong interest. Qualified Institutional Buyers led the charge with 140.50 times oversubscription, while non-institutional investors subscribed 75.93 times and retail investors 53.81 times their allocated portions.
This remarkable investor confidence stems from Aditya Infotech’s strong market position in India’s growing security and surveillance sector. Operating under the CP Plus brand, the company has established itself as a leading manufacturer and supplier of video security solutions, serving over 550 cities and towns across India with an extensive portfolio of 2,986 stock keeping units.
The financial performance of Aditya Infotech has been particularly impressive, with the company reporting revenue growth of 11.84% year-on-year in FY25, reaching ₹3,111.87 crore. More striking was the net profit surge, which jumped from ₹115.17 crore in FY24 to ₹351.36 crore in FY25, demonstrating the company’s improving operational efficiency and market demand for its products.
Before the public offering, Aditya Infotech successfully raised ₹582.30 crore from anchor investors on July 28, 2025. This pre-IPO funding round attracted marquee institutional investors including the Government of Singapore, Goldman Sachs, Abu Dhabi Investment Authority, and several leading mutual funds, indicating strong institutional confidence in the company’s prospects.
The IPO structure comprised a fresh issue worth ₹500 crore and an offer for sale of ₹800 crore by the promoter Khemka family. The fresh funds will primarily be utilized for debt reduction of ₹375 crore from the company’s total outstanding borrowings of ₹422.8 crore as of May 2025, with remaining proceeds allocated for general corporate purposes.
Aditya Infotech’s product portfolio spans various security solutions including smart home IoT cameras, HD analog systems, network cameras, thermal cameras, and AI-powered solutions for automatic number plate recognition and people counting. The company serves diverse sectors including banking, healthcare, education, manufacturing, hospitality, and law enforcement.
While market analysts acknowledge the strong debut, they emphasize that long-term performance will depend on the company’s execution capabilities and broader trends in India’s security infrastructure market. The successful listing establishes Aditya Infotech as a notable player in the public markets, providing enhanced visibility and brand recognition that could fuel future growth in India’s expanding surveillance technology sector.
