Aditya Infotech's IPO: Should you subscribe to this tech stock?
Aditya Infotech's IPO opened July 28 and has seen a mixed start—retail investors are all in (4.02 times subscribed), while institutional buyers seem less excited (just 1% subscribed).
The upper issue price is ₹675 per share. Subscriptions close July 31, with shares set to list on August 5.
Tech firm focused on electronic surveillance gear
Since 1995, Aditya Infotech has been making and selling electronic surveillance gear under the "CP Plus" brand—think security cameras for banks and police.
With a big manufacturing setup (17.2 million units yearly), their revenue jumped from ₹2,090 crore in FY22 to ₹3,212 crore in FY24.
Profits also doubled to ₹210 crore.
Mixed views among analysts on the IPO
New government rules now limit some Chinese imports, giving Indian companies like Aditya a boost.
Some brokerages (Geojit and Anand Rathi) like the company's growth story and say "subscribe," but others (like SBI Securities) warn the stock looks pricey right now with a high P/E ratio and weak cash flows.