Massive Demand for Aditya Infotech IPO: Closes With 99.5x Subscription,GMP Spikes; Listing to Watch!

The Aditya Infotech IPO closed with a very good response from investors across all categories, as the issue was oversubscribed 99.55 times on the final day of bidding on July 31st. This Mainboard IPO has seen a massive demand in the grey market as well and is trading more than 40% up from the issue price currently.

Aditya Infotech IPO Subscription Update

While the overall bidding touched 99.55 times, the retail category was subscribed 49.32 times, while the QIBs and NIIs segments subscribed 130.84 times and 73.57 times, respectively.

Strong Grey Market Premium Signals Bullish Listing

The Aditya Infotech IPO GMP today, as of today, stood at Rs. 290, according to BSE data. So investors can expect a 43% listing gain on the issue price of Rs. 675; the share may list at Rs. 965 a piece on both BSE and NSE on August 5th, which is the tentative listing date.

Aditya Infotech IPO Details

The IPO comprises a fresh issue of Rs. 500 crore and an offer for sale of Rs. 800 crore, aggregating to a total issue size of Rs. 1,300 crore. The IPO opened on July 29 and has closed today. The Aditya Infotech IPO allotment date is expected to be Friday, August 1st, and the listing date is tentatively set for next week, Tuesday, August 5th, on both the NSE and BSE.

Brokerage View on Aditya Infotech IPO

According to Nirmal Bang Securities, Aditya Infotech is "well-placed to benefit from the rising demand in India's video surveillance market," supported by its R&D capabilities and diversified product portfolio. The broking highlights that the company's revenues and EBITDA have grown at a CAGR of 17% and 24%, respectively, between FY23 and FY25. Valuation-wise, the IPO is priced at 53x FY25 earnings, which is considered reasonable when compared to other listed consumer durable players. The firm has given a 'Subscribe' recommendation to the IPO.

About the company

Aditya Infotech Ltd operates in India's security and surveillance industry, especially in the video surveillance segment. The company works under the brand name CP Plus and has a market share of around 21%. AIL has a strong pan-India presence with operations in 550+ cities and towns, supported by a network of 1,000+ channel partners and 41 branch offices. This wide distribution framework helps the company maintain its leadership position and continue growing its brand visibility and market penetration.

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