Aditya Infotech's ₹1,300 cr IPO to hit D-Street on July 29; price band set at ₹640-₹675

Aditya Infotech, known for its ‘CP Plus’ brand of video surveillance and security products, is set to launch its ₹1,300 crore initial public offering (IPO) on July 29. The Noida-based company has fixed price band at ₹640-675 per share for its public issue, aiming to garner 1,300.00 crore at a market capitalisation of ₹7912 crore.

The IPO of video surveillance and security services provider consists 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, around ₹375 crore will be used to repay debt, while the remaining funds will go toward 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.

The Aditya Infotech IPO will close on July 31, while the allotment of shares is expected to be finalised on August 1, 2025. The shares are expected to be listed on the BSE and NSE on August 5, 2025.

The lot size for an application is 22 equity shares and in multiples thereafter. The company has reserved 75% of the issue for qualified institutional buyers (QIB), up to 15% for non-institutional investors, and remaining 10% for retail investors.

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 who 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 analog to Internet Protocol (IP) camera, and on-premise to cloud-video surveillance, the industry has seen market defining transformation in the recent past.

Traditionally, the market has been dominated by several Chinese players like Hikvision and Dahua. Organised players contribute to approximately 90% of the overall market, while unorganised players contribute to the remaining approximately 8% to 10% of the market, mostly in the retail and residential segment.

According to Frost & Sullivan report mentioned in the DRHP, India's video surveillance market is witnessing strong momentum, with its value projected at ₹10,620 crore in fiscal 2025. The sector is expected to grow at a CAGR of 16.46% through fiscal 2030, reaching an estimated ₹22,740 crore. Unit sales are also anticipated to surge, from 3.97 crore units in fiscal 2025 to approximately 74.6 crore units by fiscal 2030.

As per report, several key drivers are propelling the growth of the CCTV camera market in India. Rising concerns over security and increasing crime rates, rapid urbanisation, the need for public space monitoring, and expanding applications of video analytics beyond traditional security have all contributed to a heightened awareness of the importance of surveillance systems.

This robust growth can be attributed to a combination of factors, including increased focus on personal and business security, proactive government initiatives such as smart city development, and continuous technological advancements in surveillance equipment. The emergence of high-definition cameras and sophisticated analytics software is further enhancing the appeal and utility of modern video surveillance systems.

ICICI Securities and IIFL Securities are managing the issue as book-running lead managers.