IPO Details
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Schedule of Aditya Infotech Ltd
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About Aditya Infotech Limited IPO
Aditya Infotech Limited IPO is an IPO aggregating up to ₹1,300 crores. It consists of an offer for sale aggregating up to ₹800 crores and a fresh issue aggregating up to ₹500 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Aditya Infotech Limited IPO
- Prepayment and/or repayment of all or a portion of certain outstanding borrowings availed by the company.
- General corporate purposes.
Aditya Infotech Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹800 crores |
Fresh Issue | Aggregating up to ₹500 crores |
EPS (₹) For the year ended March 31, 2024 | 11.24 |
All Financial Information about
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Industry Outlook
Frost & Sullivan estimates the global video surveillance market to be valued at $3,290 crores in FY 2024. The market (in terms of revenue) is estimated to grow by CAGR of 13.3% from FY 2024 till FY 2029 as against a mere CAGR 2.8% from FY 2020 to FY 2024.
India is one of the fastest growing major economies in the world. There has been significant focus from the government on infrastructure with initiatives like Smart Cities, Digital India, PM Gati Shakti Scheme, Bharatmala Scheme, etc. security and safety remain critical in any of these initiatives, and hence the installation of video surveillance systems are important. The private sector, enterprises and businesses, deploy CCTV systems for not just surveillance but also for other use cases like people counting, energy management, automatic number plate recognition, etc. From close to a 100 crores in FY 2020, the video surveillance market in India reached $120 crores in FY 2024 with growth recorded at CAGR 4.3%.
Overall, the video surveillance market has been evolving owing to the needs of different sectors and the development of technology that has played a big role in introducing newer products. The video surveillance camera market is estimated to rise, with substantial growth anticipated in both unit sales and revenue generation. The volume of units is expected to increase, starting from 2.31 crore units in FY 2020 and reaching 60.23 crore units in FY 2029. In terms of revenue, the market shows a very similar pattern, with revenues increasing from ₹4,320 crores in FY 2020 to an estimated ₹11,310 crores in FY 2029.
India's residential video surveillance market has been on a steady climb since fiscal year (FY) 2020, with this trend expected to continue until FY 2029. In 2024, a significant 0.27 crore units were sold, generating revenue of ₹720 crores. The market is projected to experience a healthy Compound Annual Growth Rate (CAGR) of 15.9% in terms of unit sales and 15.1% in revenue from FY 2024 to FY 2029 .
Company Information
Aditya Infotech Limited offers a comprehensive range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under their ‘CP PLUS’ brand which has strong recall value. In addition, they offer solutions and services such as fully integrated security systems and Security-as-a-Service directly and through their distribution network that address the requirements of end-customers engaged in a broad range of sectors such as banking, insurance, real estate, healthcare, industrial, defence, education, hospitality, manufacturing, retail and law enforcement.
Their product line comprises high definition (HD)-analogue cameras, digital video recorders (DVRs), internet protocol (IP) network cameras, network video recorders (NVRs), biometric products, access control products, mobile surveillance solutions, body-worn cameras, thermal cameras, temperature screening solutions, interactive displays, routers, cables, power supplies (SMPS), racks and other accessories and products. They also partner with other companies and government agencies to develop indigenised innovations including Indian-made Systems on Chips (SoCs) and thermal cameras.
Aditya Infotech Limited IPO Strengths
Largest Indian player in the growing Indian security and video surveillance market focusing on commercial and consumer segments with strong brand recall.
They are the largest provider of video security and surveillance products, solutions and services in India in terms of revenues, with a market share of 20.2% in fiscal 2024. (Source: F&S Report) Their suite of security-related service offerings and end-to-end solutions enables their customers across India to meet their security and surveillance requirements and to save operational and administrative costs in managing diverse security requirements, thereby facilitating efficient problem-solving.
Pan-India sales, distribution and service network catering to a diversified customer base.
They attribute the scale of their operations to their pan-India sales and distribution network which they have continued to expand since they commenced operations. They have the widest pan-India reach within the video surveillance market ecosystem. (Source: F&S Report) Their products are sold in over 500 cities and towns and they operate through a network of 40 branch offices and nine RMA centres across India, all as of March 31, 2024. They sold their surveillance products through their network of over 800 distributors in tier I, tier II and tier III cities, and over 2,200 system integrators in fiscal 2024.
Comprehensive portfolio of electronic security and surveillance products, solutions and services, providing end-to-end security solutions across verticals.
Their 'CP PLUS' and ‘Dahua’ brands are amongst the prominent brands for CCTV and security products in India in terms of diversity of offerings as of March 31, 2024. (Source: F&S Report). Their comprehensive range of security products and solutions includes CCTV cameras such as smart home IoT cloud cameras, network and HD analogue cameras, digital video recorders and network video recorders, mobile and onboard surveillance, body-worn cameras, thermal cameras and temperature screening solutions, explosion-proof cameras, integrated central command and control software, AI/deep learning-based video analytics solutions, access control, time-attendance solutions, biometric products, video doorbells and video door-phones, HMS, AMS, interactive displays, monitors, SD Cards, as well as other accessories and products including cabling, racks, storage solutions and customised solutions.
Advanced Manufacturing and Research and Development Capabilities with Focus on Quality.
Following a joint venture agreement with Dixon Technologies in 2017, they had established India's largest CCTV manufacturing facility in Tirupati, Andhra Pradesh (Source: F&S Report) which has now relocated to Kadapa, Andhra Pradesh. They were the first player in the security and surveillance industry to localise production in India. (Source: F&S Report) In fiscal 2024, they relocated their manufacturing facility to Kadapa, Andhra Pradesh and as of March 31, 2024, the Kadapa Facility is the third largest CCTV manufacturing facility in the world in terms of units manufactured (Source: F&S Report) with a capacity of 1.56 crore units per annum, as of March 31, 2024.
Risks of Aditya Infotech Limited IPO
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Their financial performance is primarily dependent on the revenue from the sale of closed circuit television (CCTV) cameras, network video recorders (NVRs), digital video recorders (DVRs) and pan-tilt-zoom (PTZ) cameras which collectively contributed to 78.92% of their revenue from operations in fiscal 2024. Variations in demand and changes in consumer preference towards CCTV cameras, NVRs, DVRs, PTZs cameras and other surveillance equipment could have an adverse effect on their business, results of operations, cash flows and financial condition.
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They import a portion of their parts and materials. Any restrictions on imports or fluctuation in global commodity prices that affect their parts and materials could adversely affect their business, results of operations, cash flows and financial condition.
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Their manufacturing facility is located in Andhra Pradesh, which exposes their operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters. Any disruption in the continuous operations of their manufacturing facility would have an adverse effect on their business, results of operations, cash flows and financial condition.
Peers Comparison
There are no listed companies in India that are comparable in all aspects of business and services that the company provides. Hence, it is not possible to provide an industry comparison in relation to the company.
Anchor Investor Information
The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
ICICI Securities Limited IIFL Securities Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
- Offering a comprehensive range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments
- They offer solutions and services such as fully integrated security systems and Security-as-a-Service directly and through their distribution network.
Company Growth Trajectory
Aditya Infotech Limited has shown consistent financial growth in recent years, with their revenue from operations, EBITDA and profit after tax having grown at a CAGR of 30.01%, 22.62% and 9.00%, respectively, from fiscal 2022 to fiscal 2024. Their revenue from operations, restated profit for the year, and EBITDA grew at a CAGR of 30.01%, 22.62% and 9.00%, respectively between fiscal 2022 and fiscal 2024.
Company Market Position
Aditya Infotech Limited is the largest Indian-owned company offering video security and surveillance products, solutions, and services with a market share of 20.2% of the video surveillance industry in India in terms of revenues in fiscal 2024.
They are the third largest manufacturer of surveillance products globally in terms of units manufactured in fiscal 2024. (Source: F&S Report) They are also the largest manufacturer (outside China) for surveillance products in terms of units manufactured in fiscal 2024.
Aditya Infotech Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 1646.211 | 2284.547 | 2782.426 |
Profit/ loss Before Tax (₹ crores) | 129.349 | 143.182 | 164.619 |
Net profit / (loss) (₹ crores) | 96.931 | 108.311 | 115.172 |
EBITDA (₹ crores) | 157.276 | 181.045 | 236.477 |
EPS (₹) | 9.06 | 10.57 | 11.24 |
Aditya Infotech Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit/(loss) before tax (₹crores) | 129.349 | 143.182 | 164.619 |
Net Cash from Operating Activities (₹ crores) | 43.541 | 55.763 | (180.405) |
Net Cash from Investing Activities (₹ crores) | (88.659) | (121.896) | 116.488 |
Net Cash from Financing Activities (₹ crores) | 19.815 | 109.131 | (44.261) |
Cash and Cash Equivalents (₹ crores) | 104.647 | 147.645 | 39.467 |
How To Check Allotment Status of Aditya Infotech Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Aditya Infotech Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Aditya Infotech Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Aditya Infotech Ltd IPO FAQs
What is the Aditya Infotech Limited IPO?
The Aditya Infotech Limited IPO has an issue size aggregating up to ₹1,300 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Aditya Infotech Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
