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Aditya Infotech (CP Plus) IPO Listing: The stock lists at Rs 1,015 apiece on the NSE, which is a premium of 50.37% over the IPO issue price of Rs 675.
Aditya Infotech IPO Listing.
Aditya Infotech (CP Plus) IPO Listing: Aditya Infotech Ltd, which offers video security and surveillance products under ‘CP Plus’ brand, made a strong stock market debut on Tuesday, August 5. The stock listed at Rs 1,015 apiece on the NSE, which is a premium of 50.37% over the IPO issue price of Rs 675.
On the BSE, the shares listed at Rs 1,014.65 apiece.
The company’s market cap stood at Rs 11,933 crore.
The strong listing is in line with its pre-listing GMP, which had suggested over 40% listing gains.
Aditya Infotech IPO Listing: Should You Buy, Hold Or Sell?
“Aditya Infotech Limited made a very strong debut on the stock market with a listing gain of approximately 50.4% over its issue price of Rs 675, getting listed at around Rs 1,015. The company manufactures and provides video security and surveillance products, solutions and services under the brand name ‘CP Plus’,” said Shivani Nyati, head of wealth at Swastika Investmart Ltd.
It enjoys a virtual monopoly as a leader in the segment. It posted growth in its top and bottom lines for the reported periods. IPO was heavily oversubscribed around 106.23×, showing strong investor confidence, she added.
“Financials depict robust growth and PAT more than doubled year-on-year, with strong operating margins and growing distribution scale. Investors are recommended to secure partial profits and retain the remainder with a stop-loss set at 850,” Nyati said.
The Rs 1,300-crore IPO was open for public subscription between July 29 and July 31. Its price band was fixed in the range of Rs 640 to Rs 675 apiece. Overall, the issue received a 106.23 times subscription, garnering bids for 1,13,04,01,778 shares as against the 1,06,41,266 shares on offer. The retail and NII participation stood at 53.81x and 75.93x, respectively. The QIB category has received a 140.50x subscription.
Most brokerages in their IPO notes had recommended a ‘subscribe’ rating for long-term investors, on the back of Aditya Infotech’s market position and industry tailwinds. However, a few have raised challenges on valuation and supplier dependency.
Anand Rathi Shares & Stock Brokers offered a ‘Subscribe for long-term’ view, calling Aditya Infotech “India’s leading provider of video security and surveillance products” with a market share of 20.8% in FY25. The brokerage noted its broad product portfolio and minimal competition. It sees strong growth potential through compliance with emerging cybersecurity regulations and next-gen tech upgrades.
Ventura Securities also said that Aditya Infotech is poised to benefit from tailwinds such as Smart Cities and Digital India. “The residential segment alone is expected to grow at a CAGR of 15.1 per cent in revenue from FY24 to FY29,” it said, praising the company’s distribution network and wide-ranging product suite.
Aditya Infotech offers a comprehensive range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under ‘CP Plus’ brand.
In addition, the company offers solutions and services such as fully integrated security systems and security-as-a-service directly and through its distribution network.
The company announced that 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per for retail investors.
As of March 2024, the company’s total borrowings stood at around Rs 405 crore, according to its draft papers.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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