Aditya Infotech IPO Day 1: GMP, Valuation, and Subscription Details

Aditya Infotech IPO Day 1: GMP, Valuation, and Subscription Details

Aditya Infotech, the parent company of the well-known CP Plus brand, opened its ₹1,300 crore IPO for public subscription on July 29, 2025. The IPO will remain open for bidding until July 31. With a price band set between ₹640 and ₹675 per share, the offering has already created buzz among investors and analysts.

About the Company
Aditya Infotech is a leading provider of video surveillance products and integrated security solutions. Operating under the CP Plus brand, the company serves both enterprise and consumer markets. Its products include advanced CCTV cameras, monitoring systems, and security-as-a-service platforms, supported by a wide distribution network across India.

IPO Structure and Fund Utilization
The IPO consists of a fresh issue worth ₹500 crore and an offer for sale (OFS) of ₹800 crore by existing promoters. Out of the fresh issue, ₹375 crore is planned to be used for repaying existing debt. As of March 2024, the company’s borrowings stood at around ₹405 crore. The rest of the funds will go toward general corporate purposes.

Anchor Investment and Market Response
A day before the IPO launch, Aditya Infotech raised ₹582 crore from anchor investors, showing strong institutional interest. This positive response is often considered a sign of trust in the company’s financials and future growth.

Valuation and Analyst Outlook
At the upper price band of ₹675 per share, the company is valued at a price-to-earnings (P/E) ratio of 22.5x based on estimated FY25 earnings. This results in a projected market capitalization of approximately ₹7,912 crore. Brokerage firm Anand Rathi has rated the IPO as "Subscribe – Long Term", highlighting the company’s strong market presence, consistent revenue growth, and limited competition.

GMP and Subscription Details
As of Day 1, the grey market premium (GMP) is showing steady demand, though exact figures may fluctuate. The IPO allocation is structured as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Investors. Shares worth ₹6 crore are also reserved for eligible employees.

Conclusion: Should You Subscribe?
Aditya Infotech’s IPO offers long-term growth potential due to its strong brand, growing market, and healthy financials. While the pricing appears full, long-term investors may consider subscribing based on fundamentals and positive analyst recommendations.