Blog

IPO Details

• IPO Opening Date: July 29, 2025
• IPO Closing Date: July 31, 2025
• Total IPO Size: ₹1,300.00 crores
• Fresh Issue: 0.74 crore shares aggregating to ₹500.00 crores
• Offer for Sale (OFS): 1.19 crore shares aggregating to ₹800.00 crores
• IPO Price Band: ₹640 to ₹675 per share. The lot size for an application is 22 shares.
• Allocation to Investors:
  • QIB (Qualified Institutional Buyers): 74.62% (1,43,77,778 shares)
  • NII (Non-Institutional Investors): 14.92% (28,75,556 shares)
  • RII (Retail Individual Investors): 9.95% (19,17,037 shares)
  • Employee Reservation Portion: 0.51% (97,561 shares), offered at a discount of ₹60.00 to the issue price
• Book Running Lead Managers: ICICI Securities Limited and IIFL Capital Services Limited
• Registrar for the Issue: MUFG Intime India Private Limited (Link Intime)

About the Company

• History: Aditya Infotech Limited (AIL) was incorporated on March 27, 1995, as ‘Perfect Lucky Goldstar International Limited’ and later changed its name in August 1997. The company has been evolving from computer hardware to gaming, graphics, 3D animation, and currently focusing on video surveillance. It claims to have played a significant role in evolving the video surveillance industry in India over the last one and a half decades.
• Main Products/Services: AIL manufactures and designs a comprehensive range of video surveillance products, technologies, and solutions under its brand ‘CP Plus’, including analog HD cameras, IP cameras, Wi-Fi cameras, recorders, and allied accessories. Its product portfolio also includes smart home IoT cameras, HD analog systems, advanced network cameras, body-worn and thermal cameras, long-range IR cameras, and AI-powered solutions like automatic number plate recognition, people counting, and heat mapping. Additionally, the company distributes Dahua products as an exclusive distributor in India. AIL provides fully integrated security systems and Security-as-a-Service. Its services include annual preventive maintenance, quick response, electric vehicle station management, IoT automation, door automation, and access control systems.
• Sales & Manufacturing Units: As of March 31, 2025, the company offered 2,986 Stock Keeping Units (SKUs) and sold products across over 550 cities and towns in India. Its manufacturing facility in Kadapa, Andhra Pradesh, has an installed capacity of 17.20 million units per annum. The company operates 10 strategically located warehouses across India, with regional hubs in Noida, Bhiwandi, Kolkata, and Chennai.
• Employees: Almost half of the workforce in the manufacturing facility are women, and the company provides facilities, support, training, and upskilling to them. As of March 31, 2025, AIL has over 3,000 factory personnel and more than 1,000 employees, including a dedicated R&D team of 86 employees in Noida, Uttar Pradesh.
• Promoters: The company’s promoters are Hari Shanker Khemka, Aditya Khemka, Ananmay Khemka, Rishi Khemka, and Hari Khemka Business Family Trust.
• Branches/Network: The company operates through a network of over 1,000 distributors and more than 2,100 system integrators across tier I, tier II, and tier III cities, and has 41 branch offices and 13 Return Merchandise Authorization (RMA) centres across India. It also has 69 dedicated ‘CP Plus Galaxy’ stores.

Financials (All amounts in ₹ Crore)

Post IPO Market Capitalization: ₹7,911.89 crores

Anchor Issue

• Aditya Infotech Limited raised a total of ₹582.3 crore from 54 anchor investors. The top 10 anchor investors were Government of Singapore (11.61%), Monetary Authority of Singapore (8.12%), HDFC Mutual Fund (6.44%), SBI Mutual Fund (5.91%), Goldman Sachs (5.38%), Nomura (5.36%), Ashoka Whiteoak India Opportunities Fund (5.34%), Abu Dhabi Investment Authority (5.33%), Axis Mutual Fund (4.43%), and Nippon Life India Trustee (3.65%).
• The remaining anchor investors include various domestic and foreign institutional funds, including several other mutual funds, global asset managers, insurance companies, and pension funds, each with allocations typically under 2.5%. These include Tata Mutual Fund, Aditya Birla Sun Life, Mirae Asset, Franklin Templeton, ICICI Prudential, Sundaram MF, and many others across 44 more names.
• Total mutual fund allocation from the anchor book is approximately 27%

Salient Points

• Use of Funds: The proceeds from the IPO will primarily be used to make the company debt-free by repaying a working capital loan (₹375.00 crores) and for general corporate purposes.
• Business Scenario: The Indian video surveillance market is projected to grow from ₹106.2 billion in Fiscal 2025 to ₹227.4 billion by Fiscal 2030, at a Compound Annual Growth Rate (CAGR) of 16.46%. This growth is driven by increasing security awareness, demands for business and personal safety, and government initiatives such as smart cities.
• Business Operations: The company’s business is primarily divided into manufacturing and trading activities, which includes production and sale of CP PLUS products with after-sales services, and trading activities involving distribution of Dahua products.
• Revenue Model: The majority of revenue is generated from the sale of CP Plus brand products (68.70% in FY25), followed by Dahua brand products (24.65% in FY25) and other sources.
• Business Strategy: Aditya Infotech is committed to investing in the electronic security and surveillance industry, believing in its significant potential. The company aims to strengthen India’s manufacturing ecosystem under the ‘Make in India’ initiative by increasing production at its Kadapa facility. It also plans to expand its enterprise team to actively pursue large projects and engage directly with major corporate and business groups. The company focuses on leveraging cybersecurity regulations, expanding its product portfolio, and upgrading existing offerings with advanced technologies.
• Risks: There was no formal market for Aditya Infotech’s equity shares prior to the IPO, and the offer price might not indicate the market price post-listing. The company’s financial performance is heavily reliant on the sale of CCTV cameras, NVRs, DVRs, and PTZ cameras, which constituted 77.47% of its revenue from operations in Fiscal 2025.
• Litigations: As of the RHP date, there were no criminal proceedings or disciplinary actions by SEBI involving Key Managerial Personnel (KMPs) or Senior Management. However, the company is involved in disputes concerning statutory dues, including Goods and Services Tax, Customs duty, and Income-tax. A significant event was a fire incidence in January 2024 at a customs bonded warehouse of AIL Dixon Technologies Private Limited (a subsidiary), which resulted in a loss of ₹1,769.94 million in stock, impacting profit after tax in FY24 as an exceptional item due to uncertain recovery.
• Revenue Split by Region: In Fiscal 2025, ₹31,018.61 million in revenue was attributed to India, while ₹100.11 million was attributed to foreign countries.
• Capacity Utilisation: The installed capacity utilization at the Kadapa facility was 77.04% in Fiscal 2025, 64.09% in Fiscal 2024, and 72.66% in Fiscal 2023.
• Working Capital & Receivables Trend: The Net Working Capital Cycle was 36.99 days in FY25, 39.92 days in FY24, and 38.14 days in FY23, indicating a well-managed working capital position.
• CAGR Profits/Margins (last 3 years):
  • Revenue CAGR (Fiscal 2023 to Fiscal 2025): 16.71%
  • EBITDA CAGR (Fiscal 2023 to Fiscal 2025): 19.47%
  • Profit After Tax (PAT) CAGR (Fiscal 2023 to Fiscal 2025): 80.11%

Peers

Aditya Infotech Limited states that there are no listed companies in India that engage in a business similar to its own, making a direct industry comparison challenging. However, the RHP provides a comparison with other prominent players in the video surveillance market. (All amounts in ₹ Crore):

Management Commentary

The company’s CEO, Aditya Khemka, described their journey as “incredible,” involving bringing in the latest and futuristic technologies to India and evolving from computer hardware to video surveillance. He stated that they have played the role of an “evangelist” for the industry in India, developing the market over the last one and a half decades. He mentioned that India’s video surveillance market is projected to be around ₹12,000 crore this year at manufacturer sale value, and Aditya Infotech holds about a quarter of that market. The market is growing at high teens, approximately 16-17% CAGR, and the company aims to meet or exceed this growth by continuously investing in all facets of the business. Khemka highlighted that the company conducts Corporate Social Responsibility (CSR) initiatives primarily in healthcare and education, believing these are crucial areas for development in India. He also emphasized the empowerment of women, noting that almost half of their workforce in the largest plant in Kadapa are women, and the company provides them with facilities, support, training, and upskilling. His leadership mantra focuses on passion, hard work, and being true to oneself, emphasizing that “trust is the most important thing,” and that CP Plus and Aditya, as a company, stand for trust with customers, employees, suppliers, and trade partners. Regarding the utilization of IPO proceeds, Khemka stated that the funds would largely be used to make the company debt-free by repaying a working capital loan, with the remainder allocated for general corporate purposes. His vision for the future is a commitment to the electronic security surveillance industry, recognizing its significant potential, and aiming to make India one of the safest countries on the planet.

Opinion

• I will apply for the IPO. The video surveillance industry itself is a fast-growing sector with significant future potential in India.Aditya Infotech holds a dominant position in its segment. Aditya Infotech IPO’s triggers include its dominant CP Plus brand, strong channel and distribution, and government push for surveillance solutions. The company holds a technological edge and market leading share, but valuation is premium Company has Dixon as a investor. (see below) .
• “GMP as per social media”: ₹281, or 41.6%.
• Post IPO equity capital: ₹117.21 crore P/E FY25:  53.0x.

Ties with Dixon Technologies (India) Limited:

• In 2017, Dixon Technologies and AIL entered into a joint venture agreement to form AIL Dixon Technologies Pvt Ltd, a 50:50 partnership aimed at expanding AIL’s manufacturing capabilities for security and surveillance products, particularly under AIL’s CP Plus brand.
• On July 8, 2024, Dixon announced its plan to divest its entire 50% stake in AIL Dixon Technologies to AIL. In exchange, Dixon acquired a 6.5% stake in AIL by subscribing to 73,05,805 equity shares of AIL, valued at approximately ₹340.32 per share.
• Dixon holds a 6.5% stake in AIL, maintaining a financial interest

Investment Rationale:

• issue is considered aggressively priced by analysts.

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.