On the last day, Aditya Infotech IPO subscribed 8.88 times. Check GMP, review and other details

Aditya Infotech Rs. 1,300 crore preliminary public offer (IPO) is 8.88 times higher by the third and final day of the subscription period on July 31. This strong demand was executed mainly by retail and non-institutional investors (NIIs), which shows the widespread interest of both individual and high-praise investors. In the gray market, shares are trading at a premium, indicating a possible listing gain of about 42% above the issue of Rs 675.

The company has set the IPO price band at Rs 640 and Rs 675 per share. The issue includes new equity shares worth Rs 1.93 crore, meaning that the company is raising new capital by offering new shared shares.

Aditya Infotech IPO Subscription Update

On the final day of the subscription, the IPO received 8.88 times the subscription for 1.12 crore shares offered to the people. Retail investors showed strong enthusiasm with their part 23.87 times subscribed, while non-institutional investors (NIIS) subscribed 16.32 times. However, even though 60.65 lakh shares were allotted, the participation of eligible institutional buyers (QIB) was limited to about 25%.

Aditya Infotech shares are expected to be listed on both the BSE and the NSE on August 5.

Aditya Infotech IPO GMP today

The Gray Market Premium (GMP) for IPOs is about Rs 285 with the issue of Rs 675, suggesting that the stock is trading unofficially around Rs 960 before entering their market. This indicates a possible list benefit of about 5%, which reflects investors’ strong confidence and positive market spirit. Although unofficial, GMP gives an initial indication of demand and expected operations before the official list.

Business Overview and Financial Affairs

Aditya Infotech is the leading value-raised distributor in India for electronic security devices. The company partners with global brands such as Dahua, Seagate, TP-Link, Panasonic and others, distributing to 650+ cities by over 15,000 channel partners.

Its portfolio includes video surveillance products, control cess control systems and networking solutions – government customers, corporates and SMEs.

Between the financial year 22 and the financial year 24, the company’s revenue increased to CAGR of 24%, which has increased from 2,090 crore to Rs. 3,212 crore. Profit (PAT) after tax is Rs. More than 102 crore is doing Rs 210 crore in the financial year 24.

EBITDA margins improved by 9.6% to 10.7% in the same period. However, analysts note that business is working capital-intensive and contacts the global supply chain risks.

Aditya Infotech IPO evaluation and recommendation

At a high price band of Rs 675, Aditya Infotech is worth 36.2x P/E on the earnings of FY 24 – a premium compared to industry colleagues like Redington and English Micro. The IPO is intended to raise funds mainly for functional capital requirements (Rs 600 crore), the rest is allocated for general corporate purposes.

Brokerage firm Bajaj Broking has rated the IPO as “Subscribe to Caution”. When accepting the company’s strong brand partnership, continuous growth and wide distribution network, the note flags its high evaluation and moderate return ratio (ROE of 22% and ROE of 20%) as a potential concern.

(Connection: The recommendations, suggestions, views and views of the experts are their own. This does not represent opinions of economic time)