Aditya Infotech IPO Subscription Status
On the second day of bidding, Aditya Infotech’s IPO was subscribed 2.78 times overall for the 1.12 crore shares available to the public. Retail investors showed strong interest, with their portion subscribed 8.83 times, while the Non-Institutional Investor (NII) category saw 4.34 times subscription. However, there has been minimal participation so far from Qualified Institutional Buyers (QIBs), who were allotted 60.65 lakh shares.
Shares of Aditya Infotech are tentatively set to be listed on both the BSE and NSE on August 5.
Aditya Infotech IPO GMP Today
The grey market premium (GMP) for the IPO was seen at approximately Rs 281 over the issue price of Rs 675, indicating that the shares are trading unofficially at around Rs 956 ahead of their market debut. This translates to an expected listing gain of about 41.6%, reflecting strong investor sentiment and optimism around the IPO. While unofficial, the GMP offers a glimpse into market demand and potential performance before official listing.
Business Overview and Financials
Aditya Infotech is a leading value-added distributor (VAD) in India for electronic security equipment. The company partners with global brands like Dahua, Seagate, TP-Link, Panasonic, and others, distributing across 650+ cities with over 15,000 channel partners.
Its portfolio includes video surveillance products, access control systems, and networking solutions—catering to government, corporates, and SMEs.
Between FY22 and FY24, the company’s revenue grew at a CAGR of 24%, from Rs 2,090 crore to Rs 3,212 crore. PAT grew from Rs 102 crore in FY22 to Rs 210 crore in FY24.
EBITDA margins improved slightly from 9.6% to 10.7% over the same period. However, analysts note that the business remains working capital intensive and exposed to global supply chain risks.
Aditya Infotech IPO Valuation and Recommendation
At the upper price band of Rs 675, Aditya Infotech is valued at a P/E of 36.2x on FY24 earnings, which is at a premium to industry peers like Redington and Ingram Micro. The IPO aims to raise funds primarily for working capital needs (Rs 600 crore), with the rest for general corporate purposes.
Also read: NSDL’s Rs 4,012 crore IPO opens for subscription. Should you apply?
Brokerage firm Bajaj Broking has rated the IPO as “Subscribe with Caution”. While acknowledging the company’s strong brand partnerships, consistent growth, and deep distribution network, the note flags its high valuation and moderate return ratios (RoE 22%, RoCE 20%) as concerns.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
