Aditya Infotech IPO: A Deep Dive into the ₹1,300 Crore CP Plus Launch
Introduction
Aditya Infotech Limited (AIL), operating under the well-known CP Plus brand, has launched a ₹1,300 crore Initial Public Offering (IPO) that has garnered significant market attention. Specializing in advanced video surveillance and security solutions, the company is opening its shares to the public from July 29 to July 31, 2025. The IPO combines a ₹500 crore fresh issue and an ₹800 crore Offer for Sale (OFS) by promoters aiming to reduce debt and fund expansion.
This 1,500-word professional analysis covers everything from the company background, IPO structure, financials, valuation, risks, and expert insights to help investors make an informed decision.
Who Is Aditya Infotech Limited?
Founded in 1994, Aditya Infotech is a leading player in India’s video security and surveillance industry. Under its brand CP Plus, the firm serves both enterprise and consumer markets with products such as:
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CCTV cameras (analogue, HD, smart, thermal, dashcams)
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AI-based analytics (ANPR, heat mapping, people counting)
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Security systems and Security-as-a-Service
Operating across more than 550 cities, AIL employs over 2,900 factory workers and has a pan-India presence with warehousing and service centers across major states.
IPO Structure & Timeline
Key IPO Details
| Feature | Details |
|---|---|
| Price Band | ₹640 – ₹675 per share |
| Lot Size | 22 shares (₹14,850 at ₹675) |
| Issue Size | ₹1,300 crore |
| Fresh Issue | ₹500 crore |
| Offer for Sale (OFS) | ₹800 crore |
| Retail Allocation | 10% |
| NII Allocation | 15% |
| QIB Allocation | 75% |
| Discount to Employees | ₹60 per share |
| IPO Opening Date | July 29, 2025 |
| IPO Closing Date | July 31, 2025 |
| Allotment Finalization | August 1, 2025 |
| Refund & Share Credit | August 4, 2025 |
| Listing Date | August 5, 2025 |
| Anchor Lock-in Period Start | August 5, 2025 |
Purpose of the IPO—Why Now?
Objectives:
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Debt Reduction: ~₹375 crore to repay borrowings (₹405 crore as of March 2024)
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Working Capital: Fund day-to-day operations and inventory
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Corporate Purposes: Branding, R&D, warehousing, and general business needs
By reducing debt-to-equity ratio from 0.4x to ~0.2x, AIL may improve financial flexibility and investor appeal
Financial Performance Overview
Company Financial Highlights
| Fiscal Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | PAT Margin | EPS (₹) | RoNW (%) | Debt/Equity |
|---|---|---|---|---|---|---|
| FY 2022–23 | 2,295.6 | 108.3 | ~4.7% | 10.6 | ~34.8% | 1.31 |
| FY 2023–24 | 2,795.96 | 115.17 | ~4.1% | 11.24 | ~27.2% | 0.96 |
| FY 2024–25 (annualised) | 3,122.93 | 351.37 | ~11.3% | 33.02 | ~34.5% | 0.41 |
Valuation and Listing Expectations
Valuation at a Glance
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At the ₹675 upper price band, IPO is valued at ~22.5x P/E based on annualised FY25 EPS
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Promoter stake post-IPO: ~77%
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Estimated market capitalization post-listing: ~₹7,912 crore
Grey Market Premium (GMP) & Listing Estimates
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GMP ranges from ₹205 to ₹250, implying potential listing gains of 30–38% over ₹675
This suggests optimistic investor sentiment, though valuations are a sticking point for cautious analysts
Strengths and Growth Potential
Key Business Strengths
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Strong CP Plus Brand: ~20.2% market share in India’s video surveillance as of FY24
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Wide Distribution Network: Presence across 550+ cities, with omni-channel product availability
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Make-in-India Focus: 85% of products manufactured domestically, aligning with government incentives
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Industry Tailwinds: Adoption of STQC norms and government surveillance mandates
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Anchor Commitment: ₹582 crore raised from anchor investors before IPO launch
Risks and Challenges
Key Risk Factors
| Risk | Description |
|---|---|
| Valuation Risk | 22–36x P/E may appear expensive relative to peers |
| Promoter Concentration | Post-IPO holding remains high (~77%) |
| Geographic Concentration | Manufacturing centralized in Andhra Pradesh—vulnerable to local disruptions |
| Competitive Landscape | Faces both domestic & multinational players in video surveillance |
| Hardware Dependency | Reliance on hardware component suppliers may pose supply chain risk |
| Regulatory Volatility | Changes in import duties, surveillance policies or privacy norms |
Analyst Commentary & Market Sentiment
Expert Opinions
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Aditya Birla Money: Recommends “Subscribe”—favorable regulatory tailwinds and brand positioning
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Anand Rathi, Bajaj Broking: Suggest “Long-term subscribe”—consistent earnings and dominant domestic player
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Economics Times / Rupeezy: Warn of high valuation and recommend cautious participation—but note strong GMP and market interest
The mix of optimism about listing gains and caution due to valuation highlights varied perspectives.
Investment Outlook and Suitability
Pros & Cons Summary
| Pros | Cons |
|---|---|
| ✔ Well-known brand with sizeable market share | ✘ High P/E compared to industry peers |
| ✔ Strong growth in FY2025 led by robust PAT margin | ✘ Limited retail allocation (10%) could lead to oversubscription |
| ✔ Anchor investor confidence (₹582 crore) | ✘ Hardware/service business sensitive to procurement issues |
| ✔ Market poised for surveillance boom (STQC norms etc.) | ✘ High promoter dependency and diluted control post-issue |
Ideal Investor Profile
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Long-term growth-oriented investors
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Individuals comfortable with moderate risk and moderate valuations
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Those seeking sector exposure in smart security and IoT evolution
Conclusion
The Aditya Infotech (CP Plus) IPO presents a compelling opportunity for investors interested in the growing surveillance technology space in India. With robust financials, clear growth plans, strong anchor support, and favorable market sentiment, it stands out among recent public offerings.
However, the high valuation ratio and concentration of promoter holding suggest that cautious investors should weigh upside potential against underlying valuation and sector risks. Retail investors—especially with long-term horizons—may find value, but must be aware of limited public allocation and performance volatility post-listing.
