Aditya Infotech IPO: Is its Lofty Valuation Justified by its Grand Vision?

Market

Aditya Infotech is stepping into the spotlight with one of the most talked‑about IPOs in India’s tech scene this year. The company, known for its work in security and surveillance solutions, plans to raise significant capital through this public issue. What’s drawing attention is not just the size of the offer but the bold price tag it carries.

We’re seeing this launch happen at a time when India’s technology sector is booming and investor appetite for growth stocks is high. But with high demand often comes high expectations, and that raises the big question. Is Aditya’s Infotech lofty valuation truly backed by its business strength and future vision, or are investors paying a premium for potential that’s still unfolding?

Company Overview

Aditya Infotech has become most well-known because of CP Plus. CP Plus includes CCTV and smart camera brands, which are the most popular. They offer full security solutions, hardware, and services across 650+ cities, via 30,000+ channel partners and 41 branch offices.
The company has 10 warehouses in India and a manufacturing setup in Andhra Pradesh.

IPO Details

  • Issue size: ₹1,300 crore, including ₹500 crore fresh issue and ₹800 crore OFS.
  • The share price is set between ₹640 and ₹675, and investors must buy at least 22 shares, bringing the minimum investment to roughly ₹14,850.
  • Issue period: 29-31 July; Allotment expected 1 Aug; Listing likely on BSE & NSE by 5 Aug 2025.
  • Allocation: 75 % QIB, 15 % NII, 10 % Retail, plus employee quota (~₹6 crore).

Market Opportunity & Industry Context

India’s security and surveillance sector is expanding fast. Rising smart city projects, corporate security needs, and demand for AI‑enabled systems fuel growth. Aditya Infotech operates in the video surveillance space with almost no comparable listed rivals in India, giving it a distinct position in the market.

Global players exist, but local scale and brand recall give CP Plus a competitive edge.

Financial Performance

Between FY22 and FY24, revenue grew from ₹2,090 crore to ₹3,212 crore (CAGR ~24 %). PAT rose from ₹102 crore to ₹210 crore. EBITDA margins edged up from 9.6 % to 10.7 % over the same period. As of March 2024, total borrowings stood at ≈₹405-423 crore, and the company plans to repay ₹375 crore using fresh issue proceeds.

Valuation Debate: Lofty or Reasonable?

At ₹675/share, the IPO values the business at ₹7,912 crore post‑issue, with FY25 P/E of 22.5×. P/B is around 5.2×, and EPS multiples based on FY24 earnings can be as high as 36×. This is steeper than peers like Redington or Ingram Micro. So, the question: Is the sharp premium for brand, scale, and growth potential justified?

Strengths & Risks

Long‑Term Vision: Can It Deliver?

We see a company aiming to grow beyond hardware. They are investing in integrated security systems and subscription‑based services (security‑as‑a‑service). Plans tie into India’s digital makeover and domestic manufacturing focus. With strong anchor investor backing (Govt of Singapore, Goldman Sachs, Abu Dhabi funds), they have the means to scale.
Execution on reducing debt and improving working capital efficiency will be key to supporting their grand vision.

Conclusion

Aditya Infotech IPO is priced with optimism. A 30‑plus % grey market premium signals strong demand. We believe the valuation reflects both the brand’s strength and future potential. But it also assumes flawless execution and steady market growth.
For long‑term investors, this IPO may offer value if the company can deliver on its vision. Yet caution is needed given high P/E, cash‑tying operations, and global supply risks.
We recommend investors do their homework. The upside is real, but so are the challenges.

FAQS:

What is meant by the IPO of Aditya Vision Limited?

Aditya Vision Limited’s IPO is when the company sells its shares to the public for the first time. It helps raise money for growth, stores, and technology upgrades.

Who benefits the most from IPO underpricing if an IPO indeed turns out to be heavily underpriced?

The biggest gains go to investors who purchase shares at the IPO price. They can sell later at a higher market price, making quick profits. The company itself does not gain.

What happens when an IPO is overvalued?

When an IPO is overvalued, shares are priced too high. Investors may avoid buying, causing weak demand. The stock can drop sharply after listing, hurting early buyers.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.