IPO closes on 31 Jul'25
Aditya Infotech Ltd
Minimum Investment
₹ 14,850 / 22 shares
Grey market premium
₹ 263 (39% premium)
Our Verdict:
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- Aditya Infotech Ltd (AIL) has shown strong revenue and earnings growth over the last three years, supported by healthy return metrics. The sharp surge in FY25 profit, however, was partly driven by a one-time exceptional gain.
- As of May 31, 2025, total borrowings stood at Rs 422.77 crore. With Rs 375 crore from IPO proceeds earmarked for debt repayment, interest costs are likely to reduce significantly, further strengthening the financial profile.
- In terms of valuation, the IPO appears reasonably priced at a P/E of 20x based on FY25 earnings. Further, the grey market premium (GMP) indicates a positive listing on the stock exchanges.
- According to Frost & Sullivan, India’s video surveillance market is projected to grow from Rs 106.2 billion in FY25 to Rs 227.4 billion by FY30, registering a CAGR of 16.46%.
- With a strong product portfolio, wide distribution reach and favourable regulatory environment, AIL is well-positioned to capitalise on India’s accelerating digital surveillance adoption.
- Given these factors, investors may consider subscribing to the IPO from a medium-to-long term perspective.
About the company
Founded in
27 Mar'95
Managing director
Aditya Khemka
- AIL is India’s largest player in the video surveillance space, commanding a market share of ~20% in FY25. The company offers a comprehensive range of electronic security and surveillance products, solutions and services, catering to diverse industry verticals with end-to-end security solutions.
- AIL’s portfolio includes two key brands — ‘CP PLUS’ and ‘Dahua’. CP PLUS, the company’s flagship brand, contributes 69% of its revenue, while Dahua, a leading Chinese brand that AIL distributes in India, accounts for 25%. The company aims to increase its focus on scaling its own brand, CP PLUS, in the coming years.
STRENGTHS
- Market Leadership: AIL is the largest provider of video security and surveillance products, solutions and services in India, commanding a 20.8% market share in FY25.
- Advanced Manufacturing Capabilities: AIL emphasizes innovation and quality through its robust manufacturing and research infrastructure. Its facility in Andhra Pradesh is the world’s third-largest CCTV manufacturing unit by volume, with an annual capacity of 17.2 million units as of March 31, 2025.
- Strong Financial Performance: AIL achieved impressive growth from FY23 to FY25, with a robust CAGR of 17% in operating revenue, 19% in EBITDA and 80% in net profit.
- Solid Return Metrics: AIL showcases strong operational efficiency, with Return on Equity (RoE) at 34.53% and Return on Capital Employed (RoCE) at 33.27% in FY24.
- Expanding Profit Margins: Profit margins have consistently strengthened, with the EBITDA margin reaching 8.27% and the net profit margin improving to 11.25% by FY25.
- Extensive Market Reach: AIL has the most extensive pan-India presence in the video surveillance market, selling products across 550+ cities and towns. With 41 branch offices and 13 RMA centres, it operates through a network of over 1,000 distributors and 2,100 system integrators, ensuring widespread market penetration in Tier I, II and III cities as of FY25.
RISK FACTORS
- High Supplier Concentration: AIL faces significant supply chain risk due to its reliance on a limited number of vendors. In FY25, the top 5 suppliers accounted for ~92% of total material costs, with a single supplier contributing ~52%. Any disruption in supply or changes in vendor relationships could materially impact operations.
- Heavy Dependence on China: Around 73% of AIL’s imports in FY25 were sourced from China, exposing the company to geopolitical risks, potential import restrictions and fluctuations in commodity prices.
- Contingent Liabilities: As of March 31, 2025, AIL reported significant contingent liabilities amounting to Rs 157 crore, which could adversely affect financials if they materialize.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,300 crore
Fresh Issue
₹ 500 crore
OFS
₹ 800 crore
Price range
₹ 640 - 675
Lot size
22 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Prepayment or repayment of certain outstanding borrowings availed by the company; and
- General corporate purposes.
Dates
Bidding open
29 Jul'25
Bidding close
31 Jul'25
Allotment date
1 Aug'25
Refund date
4 Aug'25
Listing
5 Aug'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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