Aditya Infotech IPO Lists at 50% Premium: What Should You Do Now?

Aditya Infotech Limited, the force behind the trusted ‘CP PLUS’ security brand, has had a stellar debut on the stock market, listing at ₹1,015 per share, which is 50.4% above its IPO price of ₹675. This strong start comes after record-breaking demand from investors, with the IPO being subscribed over 100 times. In this post, we break down the latest listing highlights, the company’s core business strengths, growth plans, risks to watch, and what these numbers really mean for you as an investor looking for opportunities in India’s fast-growing security and surveillance industry.

IPO Overview

• IPO Date: July 29 to July 31, 2025
• Total Issue Size: ₹1,300 crore
• Price Band: ₹640 to ₹675 per share
• Lot Size: 22 shares per lot
• Allotment Date: August 1, 2025.
• Listing Date: August 5, 2025 (Tentative). Check the live share price of Aditya Infotech here.
• Subscription Status: The Aditya Infotech IPO subscriptions closed at 106.23x.

What Does The Company Do?

Put simply, Aditya Infotech brings video security within everyone’s reach. It designs, manufactures, and sells surveillance cameras, network recorders, and mobile security gadgets under its flagship ‘CP PLUS’ brand, while also distributing products for global name ‘Dahua’. Its solutions protect banks, offices, homes, hospitals, shops, you name it. The company not only sells these devices but also backs them up with after-sales support, smart AI-based features (like ‘OnVigil’), and a strong national network: 550+ cities, 41 branches, and a team of 1,274 on the ground.

Objectives of the IPO

• ₹800 crore via Offer for Sale: This money goes to current shareholders selling their stake, not the company.
• Up to ₹500 crore Fresh Issue: About ₹375 crore will go toward paying down some of its existing loans. The rest (up to ₹125 crore) will fund general business needs, expansion, and day-to-day operations.
• Greater visibility: Getting listed will help the company build a public profile and allow shares to trade openly, giving investors an easy entry and exit.

Strengths:

• Market Leader: Largest Indian player in video security, controlling 20.8% share in FY25.
• Extensive Reach: Present in 550+ cities, supports business with more than 1,000 distributors and over 2,100 system integrators.
• Product Range: Sells everything from advanced CCTV cameras to smart, AI-driven security services under one roof.
• Strong Returns: ROE of 34.53% in FY25, that’s ₹34.53 profit for every ₹100 investors’ money put to work.
• Seasoned Management: Led by industry veterans with deep experience and a reputation for navigating the evolving security landscape.
• Compliance Ready: Quick to adapt to new government cybersecurity rules, with key products already certified.

Risks:

• Revenue Dependence: 77% of the money comes from just four products. Any drop in demand for them could hurt big.
• Supplier Reliance: Relies heavily on a few main suppliers, and about a quarter of revenue is linked to Dahua products, a single supply issue could dent results.
• Single Factory Risk: Only one plant in Andhra Pradesh; local disruptions or disasters can hit production hard.
• Margins Under Pressure: Lots of sale discounts to fight off intense competition. PAT margin was 11.25% in FY25, not as fat as global peers.
• No Patents: Product designs are not protected by patents, making it easier for others to copy and compete.
• Customer Concentration: Top 10 customers bring in nearly 19% of sales. Losing any of them would sting.

Peer Comparison

• Revenue: Outpaces Indian competitors, ₹31,119 million in FY25, ahead of Samriddhi Automations and a hair above Prama Hikvision. Still small compared to global names like Dahua.
• Profit Margins: PAT margin of 3.29% (pre-exceptional) in FY25, lower than international rivals (Dahua 8.76%, Prama 7.78%) but better than some local peers.
• Returns: ROE is a clear standout at 34.53%, showing excellent efficiency compared to both Indian and global competition.
• Network: Massive pan-India footprint, broader than other Indian firms.
• Manufacturing: First in India to localize production for this sector, but has just one facility.
• Product Breadth: Over 2,900 products on offer, covering nearly every need in surveillance.

IPO Valuation

With the P/E ratio at 20.44 (based on the upper end of the IPO price band), Aditya Infotech is coming to market at a valuation that is quite reasonable when you stack it next to many recent IPOs, especially given the company’s leading position and strong ROE of 34.53%. What does this number mean? Investors will be paying ₹20.44 for every ₹1 of annual profit Aditya Infotech generates, which is on the lower side for a recognized market leader in India’s fast-growing security segment. Compared to broader market averages and relative to the company's size, reach, and proven profit generation, this valuation could be seen as attractive, especially with peers (where data is available) often commanding higher multiples. However, keep in mind that margins remain under pressure, and a big chunk of income still hinges on four main products. In short: the valuation looks fair and not overly stretched, tilting the risk-reward balance in favor of investors who believe in the company’s ability to expand its product mix and protect profitability in the competitive landscape.

Industry Outlook

Video surveillance in India is on an accelerated growth path. The market touched $1.3 billion in FY25 and is expected to grow at an annual rate of about 16.5% through 2030. What’s driving this? Living and doing business in the country today means facing rising safety demands, new rules requiring surveillance in banks and schools, and a government push for local manufacturing to reduce import dependence. All this is happening while cutting-edge tech, AI, remote monitoring, and integrated digital solutions, keeps moving the goalposts. The competitive heat is real, with price wars and discounts squeezing margins, and the industry needs to walk the tightrope between tighter privacy laws and mushrooming demand.

Analyst View

Aditya Infotech’s listing pop shows just how much confidence investors have in the company’s leadership in video security. With a P/E ratio of 20.44, you’re paying ₹20.44 for each ₹1 the company earns, a surprisingly fair deal given its 34.53% return on equity and top spot in a booming market. This means you are getting strong growth and solid profits at a price that’s fair, not inflated. The company’s powerful brand, vast distribution, and steady results stand out for anyone wanting exposure to India’s rising security needs.

Still, every opportunity has risks. Aditya Infotech relies on a handful of products for most of its sales and faces narrow profit margins plus some supplier challenges. The business will need to focus on innovation, diversify its products, and keep improving efficiency to sustain this success. All said, today’s strong listing rewards early believers and gives new investors a clear picture: this IPO is a balanced, realistic bet on a homegrown leader in a sector positioned for steady long-term growth, just be mindful of the speed bumps ahead.

Other Upcoming IPOs to Watch

Wondering what’s next on the IPO track? These upcoming names have the market buzzing and could be headed to the bourses soon.

Note: These companies are either in the DRHP stage or expected to file soon.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC to open an account.
2. Go to the INDstocks section and tap on IPO, or search for ‘IPO’.
3. Select your preferred IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates, then tap ‘Apply Now’.
5. Choose the number of lots and place your order via UPI. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Aditya Infotech's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.