Aditya Infotech Share Price Shoots Up Over 50% on Day One {update}

IPO Details and Grey Market Buzz

Aditya Infotech’s IPO was open for subscription between July 29 and July 31. The price band was set at ₹655–₹675 per share. The issue was oversubscribed by 106 times overall. Qualified Institutional Buyers (QIBs) subscribed 140×, Non-Institutional Investors (NIIs) 122×, and Retail Investors over 45×. This showed strong interest across investor categories.

Before the listing, the shares were trading at a strong grey market premium (GMP). The GMP remained between ₹280 and ₹300 in the final days before the listing. This hinted at a 40% to 45% listing gain. The actual listing exceeded those expectations.

Financial Performance of Aditya Infotech

For the financial year 2023–24, Aditya Infotech reported a total income of ₹3,111.9 crore. Its net profit stood at ₹351.4 crore, up from ₹115.2 crore the previous year. This sharp rise in profit indicates strong business growth and improved margins.

The company has shown strong financial metrics:

• Return on Equity (ROE): Over 20%
• Return on Capital Employed (ROCE): Around 19.5%
• EBITDA margin: Close to 9%

At the IPO price of ₹675, the stock was valued at a P/E ratio of approximately 22.5×. However, with the listing around ₹1,015–₹1,018, the post-listing P/E moves closer to 54×.

Business Overview and Growth Plans

Aditya Infotech operates under the CP Plus brand. It offers advanced video surveillance solutions. The company has over 2,986 product SKUs and a large distribution network across more than 550 towns and cities.

It also works with OEMs (original equipment manufacturers), including major names like Dahua and Dixon Technologies. Around 25% of its revenue comes from Dahua products. The company is expected to shift toward more in-house and local production, which could improve margins over time.

India’s video surveillance market is expected to grow at over 16% CAGR till 2030. Aditya Infotech is well-placed to benefit from this growth, supported by increasing demand from government, commercial, and residential sectors.