Why Aditya Infotech soared over 50% on listing: Key qualitative factors from the RHP

Aditya Infotech share price: 'CP Plus' brand operator Aditya Infotech's shares made a strong debut, listing at more than 50% premium over the issue price of ₹675 on Tuesday, August 5.

On the BSE, the scrip began trading at ₹1,018, reflecting a surge of 50.81%.

The proceeds from the public offer will be used to the tune of ₹375 crore for payment of debt. A portion will also be used for corporate general purposes.

Why Aditya Infotech soared more than 50% on listing: A look at qualitative factors (in points) from RHP

• The IPO of Aditya Infotech, which offers advanced video surveillance products and services under the 'CP Plus' brand, secured a massive 100.69 times subscription during the bidding period due to robust participation from all investor categories.
• According to the red herring prospectus, Aditya Infotech is India's largest player in the security and video surveillance market, primarily focusing on consumer and commercial segments.
• It has a Pan-India sales, distribution and service network, serving a diversified customer base.
• The company had advanced manufacturing and research and development (R&D) capabilities with a key focus on quality.
• It has long-established relationships augmenting sourcing capabilities and technology competencies, the RHP stated.
• Aditya Infotech has an experienced management team.
• On the financial front, the company's net profit advanced 205% to ₹351.36 crore in the financial year 2024-25, compared to ₹115.17 crore a year back. Its revenue jumped 11.84% year-on-year (YoY) to ₹3,111.87 crore.

Aditya Infotech share price lists above GMP estimates

Aditya Infotech shares listed at a 50.37% premium on the NSE. This is better than the grey market premium estimates, which had suggested listing at a 45.19% premium.