Aditya Infotech IPO Sees 38% Premium in GMP Amid Strong Retail Demand

Prime Highlights

Aditya Infotech IPO was subscribed more than 2.78 times on Day 2 by the retail investors.
Grey Market Premium (GMP) has a listing appreciation of 38% to 41% on its current price, reflecting good market sentiments.

Key Facts

The issue price is in the range of ₹640–675 per share and is a fresh issue of pure ~1.93 crore equity shares.
Final allotment is to be received by August 1 and listing will likely be on August 5 on BSE as well as NSE.

Key Background

Aditya Infotech Limited trading under the popular CP Plus brand is a leading player in India’s video surveillance solution space. The company launched its ₹1,300 crore Initial Public Offering (IPO) on July 29 at a band of ₹640–675 per share. The issue is new issue without an Offer-for-Sale element, reflecting a firm purpose of raising funds for business growth and debt repayment.

It would be applied to payment or prepayment of existing loans, ₹375 crore of them. The debt position of the company as on March 2024 stood at ₹405 crore. The financial restructuring will improve its balance sheet and provide liquidity to support future operations.

On the first day of the IPO, it was subscribed 2.05 times overall, retail investors showing none but boundless enthusiasm, subscribing 6.52 times their respective share. Non-institutional buyers also stepped forward to a great extent, while Qualified Institutional Buyers were more or less lacking in enthusiasm. On Day 2, overall subscription stood at 2.78 times, retail subscription shooting up to 8.83 times—reflecting across-the-board investor confidence in the company fundamentals.

The IPO Grey Market Premium rises even more, ranging from ₹260 to ₹282, listing with a 38% to 41% pop over the issue price. The company also raised over ₹582 crore from anchor investors such as sovereign wealth funds and domestic mutual funds as super-brands due to institutional faith in its market dominance and growth potential.

Investor sentiment is mixed—there are plenty who recommend subscribing on account of brand position and funds, but others due to high valuations and competitive market risk. But Aditya Infotech’s strategic growth, retail demand in good health, and market leadership allow reasonable room for long-term investors.