📢 Aditya Infotech IPO: Secure Your Spot in India’s Surveillance Giant!

Aditya Infotech Limited

India’s demand for security infrastructure is booming — from smart homes to AI-powered city surveillance. Riding this wave is Aditya Infotech Limited, the powerhouse behind CP PLUS, one of India’s most recognized and trusted video surveillance brands.

The company has launched its ₹1,300 crore IPO, opening from July 29 to July 31, 2025, with a price band of ₹640–₹675 per share. The IPO comprises a fresh issue of ₹500 crore and an offer-for-sale (OFS) worth ₹800 crore. Shares will list on NSE and BSE on August 5, 2025.

This IPO offers investors a chance to participate in the journey of a company that's deeply entrenched in India’s physical and digital security transformation.

🧾 About Aditya Infotech: What the Company Does

Aditya Infotech is a leading end-to-end security and surveillance solution provider, offering a full suite of hardware and software solutions under the brand CP PLUS. It plays a crucial role in:

• Manufacturing and distribution of video surveillance equipment

• AI-based monitoring and video analytics

• Biometric and access control systems

• Smart home security & IoT integration

• Cloud video management platforms

Its solutions cater to both B2B and B2C customers, including:

• Government agencies

• Banks and financial institutions

• Hospitals and educational campuses

• Residential complexes, housing societies, and retail chains

• Critical infrastructure projects like airports, railways, and smart cities

  
  

🧱 Manufacturing and Innovation Strength

The company operates a 17-million-unit capacity manufacturing facility in Kadapa, Andhra Pradesh, in collaboration with Dixon Technologies. It maintains R&D centers in Noida and Manesar, focusing on:

• Indigenous product design

• Customized AI-driven software

• Development of own video management systems (VMS) and cloud surveillance tools

• Creating its own System-on-Chips (SoCs) for product differentiation

🌐 Nationwide Distribution and Service Network

• 1,000+ distributors and dealers

• 2,100+ system integrators across India

• 69 Galaxy retail outlets (CP PLUS brand)

• 41 branches, 13 service centers

• Strong presence across Tier 2 and Tier 3 cities

This makes Aditya Infotech one of the few brands with such a deep retail and partner-led network in the Indian security tech space.

📊 Financial Performance – Strong, With a One-Time Boost

For FY25, Aditya Infotech reported:

• Revenue: ₹3,123 crore (vs ₹2,452 crore in FY24)

• Reported PAT: ₹351.4 crore (vs ₹189.9 crore in FY24)

• EBITDA Margin: 8.3%

• ROE: 34.5%, ROCE: 33.3%

• Debt-to-Equity: 0.41x (conservative gearing)

🔍 Fair Valuation Gain From JV Consolidation

In FY25, Aditya Infotech acquired full control of its joint venture with Dixon Technologies.As per Ind AS accounting norms, the company had to revalue its existing stake at fair market value, resulting in a one-time, non-operational gain of ₹248.6 crore.

👉 This led to an inflated PAT of ₹351.4 crore. However, if we exclude this gain:

• Operational PAT stands at ₹185.4 crore

• This is nearly flat YoY, compared to ₹189.9 crore in FY24

📌 Why This Matters: Investors should understand that the company's core profitability remains stable, and the one-time gain does not reflect recurring business performance.

💹 IPO Subscription & Market Response

As of Day 2, the IPO was subscribed 2.78x, with strong demand from:

• Retail investors

• HNI/NII segment

The grey market premium (GMP) is reported to be in the range of ₹205–₹281, suggesting a potential listing gain of ~30–42% over the issue price.

🔍 Peer Comparison

Company	FY25 PAT Margin	ROE	P/E (FY25)	Focus Area
Aditya Infotech	11.25% (reported) / 6% (core)	34.5%	~22.5x	Surveillance/AI Security
Dixon Technologies	~4%	18–20%	~85x	Electronics Mfg
Amber Enterprises	~5.5%	~11%	~52x	HVAC & Appliances

📌 On a P/E basis, Aditya Infotech is attractively priced relative to peers in the electronics and smart-tech space.

✅ Strengths of the Business

• Strong brand (CP PLUS) with high consumer trust

• Widest distributor network among Indian surveillance companies

• End-to-end capabilities: from product design to software to support

• Growing demand for AI surveillance, face recognition, IoT-enabled devices

• Strong profit metrics and high ROE

⚠️ What to Watch

• One-time PAT boost due to JV accounting — investors should focus on operational earnings

• Competitive market with players like Hikvision, Godrej Security, and Dahua

• Margins could fluctuate due to tech cycles or hardware price variations

📌 IPO Details at a Glance

Item	Details
IPO Date	July 29 – July 31, 2025
Listing	August 5, 2025 (NSE & BSE)
Price Band	₹640 – ₹675
Lot Size	22 shares (₹14,850 approx)
Issue Size	₹1,300 crore
Market Cap (Post IPO)	~₹7,912 crore

🧠 Final Verdict: Subscribe or Skip?

Aditya Infotech IPO offers a solid combination of:

• Brand trust (CP PLUS)

• Wide distribution reach

• In-house manufacturing

• Strong profitability metrics

While the recent spike in PAT is influenced by accounting adjustments, the company’s core business remains stable and well-positioned for future growth.