Aditya Infotech IPO gets fully subscribed on Day 1, GMP jumps to 38%: Should you apply?

Aditya Infotech IPO Day 1

The Rs 1,300-crore initial public offering of CCTV and security products maker Aditya Infotech has been fully subscribed on its first day of public bidding (July 29). Retail investors are leading the subscription race, booking their reserved portion nearly 3.5 times their quota size.

The maiden public issue of the company received bids for more than 1.14 crore shares, as against the offer size of 1.12 crore shares, according to data on NSE at 1.32 pm. Non-Institutional Investors (NII) have fully booked their reserved portion. Qualified Institutional Buyers (QIBs) have subscribed 1 percent of their reserved portion.

Key things to know about Aditya Infotech IPO:

Aditya Infotech aims to raise Rs 1,300 crore from the capital markets through a fresh issue of shares worth Rs 500 crore, and an offer-for-sale of Rs 800 crore by the firm's promoters, the Khemka family. The IPO will remain open for public bidding from July 29 to July 31 at a price band of Rs 640-675 apiece.

Investors can bid for a minimum of 22 shares, requiring an investment of Rs 14,850, and in multiples thereafter. The allotments are likely to be finalized by August 1, and the shares of the company are likely to debut on the stock markets on August 5.

Aditya Infotech IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of more than 38 percent over the IPO price at 935 apiece in the grey market, according to Investorgain. As per IPO Watch, the unlisted shares were trading with nearly 34 percent GMP.

Should you apply for Aditya Infotech IPO?

Bajaj Broking advised investors to subscribe to the issue for the long term. The domestic brokerage noted that Aditya Infotech is the largest Indian player in the growing Indian security and video surveillance market focusing on commercial and consumer segments with strong brand recall.

Anand Rathi also advised investors to subscribe to the issue for the long term, stating that the IPO appears to be fully priced. “At the upper price band, the company is valued at a FY25 P/E of 22.5x, with a post-issue market capitalization of ₹79,118.9 million. The company holds a dominant position in the segment with minimal competition and has consistently reported growth in both revenue and profitability over the stated periods,” it said.

While the IPO is being closely watched due to the company’s market leadership and strong revenue base, some caution arises from the concentrated promoter control and niche business model, says Jickson Sajee, Research Analyst, INVasset PMS. “While grey market activity shows a premium of ₹200+, implying healthy initial interest, long-term valuation will depend on execution and broader demand trends in security infrastructure,” Sajee added.

A day before the IPO opened for public bidding, the Uttar Pradesh-based company raised Rs 582.3 crore via anchor book on July 28. Aditya Infotech in a filing to exchanges on Monday said it has finalised allocation of 86.26 lakh equity shares to anchor investors at Rs 675 per share. A total of 54 institutional investors participated in the anchor book, which included marquee names like Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, Nomura Trust, Abu Dhabi Investment Authority, Allianz Global Investors, Eastspring Investments, and Manulife Global Fund.

The company is set to reduce its debt by Rs 375 crore through the fresh issue proceeds. And the remainder IPO funds will be used for general corporate purposes. "As of May 2025, the total outstanding borrowings amounted to Rs 422.8 crore," the company said.

ICICI Securities, and IIFL Capital are acting as the book running lead managers for the Aditya Infotech IPO.

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