Aditya Infotech IPO Oversubscribed 8.88 Times, Grey Market Signals Strong Debut
Aditya Infotech's Rs 1,300 crore IPO was oversubscribed 8.88 times on the final bidding day. Retail investors led with 23.87 times oversubscription, followed by non-institutional investors at 16.32 times. The grey market premium of Rs 285 suggests a potential 42% listing gain. The company, a value-added distributor of electronic security equipment, has shown strong financial growth with revenue CAGR of 24% and profit CAGR of 43.4% between FY22 and FY24. At the upper price band, it's valued at a P/E ratio of 36.2x, higher than peers. Bajaj Broking rates it 'Subscribe with Caution' due to high valuation. Listing is expected on August 5 on BSE and NSE.
*this image is generated using AI for illustrative purposes only.
Aditya Infotech's initial public offering (IPO) has garnered significant attention, with the Rs 1,300 crore issue oversubscribed 8.88 times on the final day of bidding. The strong demand, particularly from retail investors, has set the stage for a potentially robust market debut.
Subscription Details
The IPO, which offered 1.93 crore new equity shares priced between Rs 640-675, saw enthusiastic participation across investor categories:
- Retail investors: 23.87 times oversubscribed
- Non-institutional investors: 16.32 times oversubscribed
- Institutional buyers: 25% subscription
Grey Market Premium
In the unofficial grey market, Aditya Infotech shares are commanding a premium of Rs 285 above the issue price of Rs 675. This indicates a potential listing gain of 42%, reflecting strong investor optimism.
Company Overview
Aditya Infotech operates as a value-added distributor for electronic security equipment, boasting partnerships with renowned brands such as Dahua and Panasonic. The company's reach extends to over 650 cities across India.
Financial Performance
The company has demonstrated robust financial growth:
| Metric | FY22 | FY24 | CAGR |
|---|---|---|---|
| Revenue | 2,090 | 3,212 | 24.00 |
| Profit | 102 | 210 | 43.40 |
Valuation and Peer Comparison
At the upper price band, Aditya Infotech is valued at a price-to-earnings (P/E) ratio of 36.2x, which is at a premium compared to peers like Redington and Ingram Micro.
Analyst Perspective
Bajaj Broking has rated the IPO as 'Subscribe with Caution', citing concerns about the high valuation despite acknowledging the company's strong brand partnerships and growth trajectory.
Listing Details
Aditya Infotech shares are expected to list on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 5.
The strong oversubscription and grey market premium suggest significant investor interest in Aditya Infotech. However, potential investors should consider the company's valuation and market conditions before making investment decisions.
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