istock photo for BL
| Photo Credit:
iStockphoto

The initial public offering of Aditya Infotech Ltd (AIL), recognised for its video surveillance brand CP Plus, opens today for public subscription. 

The company has set a price band of ₹640 to ₹675 a share for its ₹1,300-crore IPO. The initial public offering will close on July 31. The IPO includes a fresh issue of ₹500 crore and an offer-for-sale worth ₹800 crore by the promoters and promoter group. Investors can apply for a minimum of 22 equity shares and its multiples thereafter.

From the fresh issue, the company will retire debt to the tune of ₹375 crore, while the remaining amount will go towards general corporate purposes. As of March 2025, the company’s total borrowings stood at around ₹412.84 crore, according to its RHP. For FY25, the company posted a net profit of ₹351.37 crore, up from ₹115.17 crore posted in FY24. Revenue rose to ₹3,111.87 crore (₹2,782.42 crore).

As part of the IPO, the company has mopped up over ₹582 crore from anchor investors. This anchor portion witnessed participation from domestic and foreign institutional investors, including the Government of Singapore, Monetary Authority of Singapore, HDFC Mutual Fund, SBI Mutual Fund, Goldman Sachs, Nomura, Ashoka Whiteoak India Opportunities Fund, and the Abu Dhabi Investment Authority, according to a circular uploaded on the BSE website.

Investor allocation

The IPO has reserved 75 per cent of the offer for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. It has reserved shares worth ₹6 crore for its employees, with a discount of ₹60 per equity share offered to eligible employees bidding in this portion. Investors can bid in a lot of 22 shares.

For future expansion, Aditya Khemka, Managing Director, said, the company will generate enough free cash flows. “We have been growing in the high teens and will continue to do so in the future to generate enough cash flows to meet future expansions,” he said. The primary objective of the IPO is to make the company largely debt-free, he added.

For further diversification of product lines, he said the company — which has largely benefitted from the Government’s push for local manufacturing — will continue to seize opportunities.

Stake reduction

Post IPO, the promoters’ holding will come down to 77 per cent from about 93 per cent. According to Khemka, Dixon Technologies, which currently holds a 6.61 per cent stake in lieu of selling its 50 per cent stake in the joint venture AIL Dixon Tech to the company, will not dilute its stake in the OFS. However, the holding of Dixon, which has a board member in the company, will come down marginally to about 6.2 per cent from 6.61 per cent, post the IPO, he said.

The company offers a wide spectrum of products, including smart home IoT cameras, HD analog and advanced network cameras, thermal and body-worn devices, and AI-powered solutions such as number plate recognition and people counting.

According to Khemka, the company’s facility in Kadapa, Andhra Pradesh, with a workforce of about 3,000, mostly locals and women, is the third largest in the world.

Published on July 29, 2025