Aditya Infotech Ltd IPO GMP: The Indian stock market is buzzing with excitement as Aditya Infotech Ltd, the company behind the well-known CP Plus brand, launched its Initial Public Offering (IPO) on July 29, 2025. If you’re an investor or just someone curious about the latest market trends, you’ve probably heard about the Grey Market Premium (GMP) for this IPO. It’s creating quite a stir! In this blog post, I’ll break down everything you need to know about Aditya Infotech Ltd’s IPO GMP, why it matters, and whether this could be a golden opportunity for investors. Let’s dive in!
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What Is Aditya Infotech Ltd and Its IPO?
Aditya Infotech Ltd, established in 1994, is a leading Indian company in the video security and surveillance industry. Operating under the CP Plus brand, it’s the largest Indian-owned player in this space, holding a 20.2% market share in FY24. The company offers a wide range of products, from smart IoT cameras for homes to advanced AI-driven solutions like number plate recognition and heat mapping. With a presence in over 500 cities and partnerships with global tech giants like Dahua, Aditya Infotech is a name synonymous with innovation and reliability in security solutions.
The company’s IPO, which opened on July 29 and closes on July 31, 2025, aims to raise ₹1,300 crore. This includes a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹800 crore by the promoters, the Khemka family. The price band is set at ₹640–₹675 per share, with a minimum lot size of 22 shares, requiring an investment of around ₹14,850 for retail investors. The funds will primarily be used to repay ₹375 crore of outstanding borrowings and for general corporate purposes. The IPO is set to list on the BSE and NSE on August 5, 2025.
- Key IPO Details:
- Issue Period: July 29–31, 2025
- Price Band: ₹640–₹675 per share
- Lot Size: 22 shares
- Total Issue Size: ₹1,300 crore (₹500 crore fresh issue + ₹800 crore OFS)
- Listing Date: August 5, 2025 (tentative)
Understanding Grey Market Premium (GMP)
If you’re new to IPOs, you might be wondering what GMP is all about. The Grey Market Premium is the price at which IPO shares trade in the unofficial grey market before they officially list on the stock exchange. It’s a way to gauge investor sentiment and predict potential listing gains. A high GMP suggests strong demand and optimism, while a low or negative GMP might indicate caution or lack of interest.
For Aditya Infotech, the GMP has been a hot topic. As of July 30, 2025, the GMP is reported to be around ₹281, according to sources like InvestorGain. This implies an estimated listing price of ₹956 per share (₹675 + ₹281), which could mean a listing gain of about 41.63% over the upper price band. However, GMP is volatile and can change based on market conditions, so it’s not a guaranteed predictor of performance.
- Why GMP Matters:
- Reflects investor enthusiasm before listing.
- Helps estimate potential listing price.
- Can influence subscription decisions, but shouldn’t be the only factor.
Subscription Status: A Sign of Strong Demand
The Aditya Infotech IPO has seen robust demand since it opened. By the end of Day 1 (July 29), it was subscribed 2.05 times, with retail investors leading the charge at 6.52 times subscription. Non-Institutional Investors (NIIs) booked their portion 3.16 times, while Qualified Institutional Buyers (QIBs) showed a modest 1% subscription. On Day 2, as of 11:54 a.m., the IPO was subscribed 3.72 times, with retail at 11.93 times and NIIs at 5.71 times, indicating growing momentum.
This strong subscription reflects confidence in Aditya Infotech’s market position and growth potential. The company’s extensive distribution network, spanning over 30,000 channel partners and 1,800+ system integrators, along with its focus on ‘Make in India’ manufacturing, makes it a compelling choice for investors.
Financial Performance and Valuation
Aditya Infotech has shown impressive financial growth, which adds to its appeal. In FY25, the company reported a revenue of ₹3,122.93 crore, a 12% increase from ₹2,795.96 crore in FY24. Its profit after tax (PAT) surged by 205%, from ₹115.17 crore to ₹351.37 crore. With a Return on Equity (ROE) of 34.5% and a Return on Capital Employed (ROCE) of 33.3%, the company demonstrates strong financial health. Its debt-to-equity ratio of 0.41 is also conservative, indicating prudent financial management.
At the upper price band of ₹675, the IPO is valued at a P/E ratio of 20.44x based on FY25 earnings, which analysts like Anand Rathi consider reasonable given the company’s market dominance. However, some caution that the P/E ratio based on FY24 earnings (60.05x) seems high, and the company’s reliance on suppliers like Dahua poses concentration risks.
- Financial Highlights:
- Revenue growth: 12% (FY24 to FY25)
- PAT growth: 205% (FY24 to FY25)
- ROE: 34.5%, ROCE: 33.3%
- Debt-to-equity ratio: 0.41x
Should You Subscribe to the Aditya Infotech IPO?
The big question: is this IPO worth your money? Brokerages like Anand Rathi, Aditya Birla Money, and Canara Bank Securities have given a ‘Subscribe’ rating, especially for long-term investors. They highlight Aditya Infotech’s leadership in the growing security and surveillance sector, its scalable business model, and its alignment with government initiatives like ‘Make in India.’ The GMP of 38–41% also suggests strong listing gains, making it attractive for short-term investors.
However, there are risks to consider. The company operates in a competitive hardware sector with rapidly evolving technology, and its dependence on key suppliers could be a concern. Bajaj Broking gave a ‘Subscribe with Caution’ rating, noting the elevated valuation and moderate return ratios. If you’re a long-term investor, the company’s strong fundamentals and market position make it a solid bet, but short-term investors should keep an eye on GMP trends and market sentiment.
- Pros:
- Market leader with 20.2% share in FY24.
- Strong financial growth and conservative debt levels.
- Extensive distribution network and strategic partnerships.
- Cons:
- High valuation based on FY24 earnings.
- Dependency on suppliers like Dahua.
- Competitive and fast-changing industry.
In conclusion, Aditya Infotech Ltd’s IPO is generating significant buzz, driven by its strong GMP, robust subscription, and solid fundamentals. Whether you’re looking for listing gains or a long-term investment, this IPO offers potential but comes with risks. Do your research, consult with financial advisors, and consider your investment goals before applying. The surveillance sector is booming, and Aditya Infotech is well-positioned to ride the wave—will you join the ride?
Sources: Information compiled from InvestorGain, LiveMint, Moneycontrol, and other financial news platforms.