Aditya Infotech, known for its ‘CP Plus’ brand of video surveillance and security products, made a stellar debut on the domestic stock exchanges today, with its shares listing at a 50.8% premium over the initial public offering (IPO) price.

This marks the best mainboard listing of 2025 so far, surpassing the record set by GNG Electronics, which debuted with a 49.78% premium over its issue price last month.

The shares of Aditya Infotech debuted at ₹1,018 on the BSE, in an otherwise weak broader market, against its issue price of ₹675 apiece. On the NSE, the stock listed at ₹1,015 per share.

After listing, Aditya Infotech shares gained by as much as 56% to hit a high of ₹1,053.20 on the BSE, while it touched the day’s high of ₹1,044.40 on the NSE.

At the time of reporting, the stock was up 55% at ₹1,046.60, with a market capitalisation of ₹12,306 crore. Meanwhile, the benchmark BSE Sensex was trading 0.45% lower at 80,651, and the NSE Nifty50 was down 111 points at 24,609.  

Beats Street's estimates

The listing of Aditya Infotech was better than the Street's expectations as the stock was trading 45% higher in the unlisted market. Ahead of listing, the stock was commanding a grey market premium (GMP) of ₹305, indicating the listing price to be around ₹980 per share.

“Aditya Infotech enjoys a virtual monopoly as a leader in the segment. It posted growth in its top and bottom lines for the reported periods. The IPO was heavily oversubscribed around 106.23x, showing strong investor confidence,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

“Financials depict robust growth and PAT more than doubled year-on-year, with strong operating margins and growing distribution scale. Investors are recommended to secure partial profits and retain the remainder with a stop-loss set at ₹850,” she said.

While short-term investors may book partial profits post-listing, long-term investors may consider accumulating on dips, particularly if the stock cools towards the ₹940-₹980 range, said Sourav Choudhary, Managing Director, Raghunath Capital.

“At the listing price, Aditya Infotech trades at a P/E multiple of ~52× FY25 projected earnings, a notable premium to peers in the hardware and surveillance equipment space. While its brand strength, wide distribution network, and government-aligned product portfolio justify a valuation premium, this leaves limited room for near-term upside, unless growth accelerates beyond forecasts,” he added.

IPO gets good response

The Noida-based company raised ₹1,300 crore via the IPO route, which was subscribed 106.23 times. The public issue was booked 53.81 times in the retail category, 140.50 times in qualified institutional buyer segment and 75.93 times in the non institutional investment space. The company had reserved 75% of the issue for QIB, 15% for NII, and remaining 10% for retail investors.

The IPO of the video surveillance and security services provider consisted of a fresh equity issue worth ₹500 crore and an offer for sale (OFS) of shares totaling ₹800 crore by existing promoters.

Out of the total fresh issue proceeds, the company intends to use around ₹375 crore to repay debt, while the remaining funds will go towards general corporate purposes. As of March 2024, the company’s total borrowings stood at around ₹405 crore, according to its draft red herring prospectus (DRHP) filed with the Sebi.

Aditya Infotech provides a wide array of advanced video surveillance solutions for both consumer and enterprise markets under the CP Plus brand. Its offerings also include integrated security systems and security-as-a-service, distributed directly and via a robust channel network.

Notably, the Indian video surveillance and security market is dominated by global players with no listed domestic entity. There are just a few Indian video surveillance and security players which are yet to go public such as Axis Communications, Dahua, Prama Hikvision, Sparsh CCTV, and Uniview.

The video surveillance market has evolved significantly in the recent years, driven by advancements in technology, concepts, and feature sets. From analogue to IP cameras, and on-premise to cloud-video surveillance, the industry has seen market-defining transformation in the recent past.

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