Aditya Infotech

• Aditya Infotech is coming out with a 100% book building; initial public offering (IPO) of 2,02,18,748 shares of Rs 1 each in a price band Rs 640-675 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on July 29, 2025 and will close on July 31, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 640 times of its face value on the lower side and 675 times on the higher side.
• Book running lead managers to the issue are ICICI Securities and IIFL Capital Services.
• Compliance Officer for the issue is Roshni Tandon.

Profile of the company

Aditya Infotech offers a comprehensive range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its ‘CP PLUS’ brand which has strong recall value. In addition, it offers solutions and services such as fully integrated security systems and Security-as-a-Service directly and through its distribution network who 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.

The company’s business is primarily classified as: (i) manufacturing and trading activities; and (ii) trading activities. Its manufacturing and trading activities include the manufacture and sale of its CP PLUS products and the provision of after-sales services in relation to the CP PLUS products sold by it, while its trading activities are limited to distribution of products of Dahua. It was assigned the ‘CP PLUS’ brand in 2014 with the aim of providing wider access to cost-effective security and surveillance products, solutions and services.

Its product portfolio, including products that it sources from third parties, deploy wide variety of security technologies such as artificial intelligence (AI) and machine learning (ML) to deliver Edge-based AI analytics, all developed in house by its dedicated research and development (R&D) team, integrated Internet of Things (IoT) ecosystem for connected and smart homes as well as a number of cloud services, including health monitoring systems (HMS) and attendance management systems (AMS). Its product line comprises high definition (HD)-analog 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. It also partners with other companies and government agencies to develop indigenized innovations including Indian-made Systems on Chips (SoCs) and thermal cameras.

Proceed is being used for:

• Prepayment and/or repayment of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry Overview

The global video surveillance and security market has experienced a significant transformation, marked by the adoption of advanced technologies (like artificial intelligence), integration with complementary security systems, and a shift towards service-based models. The developments have led to more intelligent, efficient, and comprehensive surveillance solutions catering to the evolving security needs of diverse end-users, driving robust growth and innovation in the industry. Video surveillance has been in use for over two and half decades now. While some countries like China have been the largest users of video surveillance/CCTV systems, the United Kingdom (UK) was among the first countries to have widely adopted CCTV surveillance. It is estimated that around 5,238 cameras were already in use in the UK across 167 different schemes by 1997.

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 is 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 $1.0 Billion in Fiscal 2020, the video surveillance market in India reached $1.3 Billion in Fiscal 2025 with growth until 2030 estimated at CAGR 16.46%.

India, as one of the prominent economies in South Asia, has experienced a significant rise in the adoption of video surveillance systems. With a growing emphasis on enhanced security, crime prevention, and response mechanisms, individuals, organisations, and authorities have started to leverage video surveillance as a key tool to ensure personal and public safety. Increasing incidents of terrorism and rising crime figures have created the need for advanced security measures, leading to an uptick in the deployment of surveillance technology across the country. In India's current security systems landscape, video surveillance has become indispensable. The market has witnessed a shift from traditional analog cameras to IP/network-based cameras, driven by technological advancements. Currently, most of the video installations are noticed in west, south and north India, however the eastern part of India, while still developing, presents high potential for growth in the video surveillance market. 

Pros and strengths

Largest Indian player in the growing Indian security and video surveillance market: The company is the largest provider of video security and surveillance products, solutions and services in India in terms of revenues, with a market share of 20.8% in Fiscal 2025. Its suite of security-related service offerings and end-to-end solutions enables its 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: It attributes the scale of its operations to its Pan-India sales and distribution network that it has continued to expand since it commenced operations. It has the widest Pan-India reach within the video surveillance market ecosystem. Its products are sold in over 550 cities and towns and it operates through a network of 41 branch offices and 13 RMA centres across India, all as of March 31, 2025. It sold its surveillance products through its network of over 1000 distributors in tier I, tier II and tier III cities, and over 2,100 system integrators in Fiscal 2025.

Comprehensive portfolio of electronic security and surveillance products: The company’s '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, 2025. Its comprehensive range of security products, and solutions include CCTV cameras such as smart home IoT cloud cameras, network and HD analog 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 customized solutions.

Advanced manufacturing and research and development capabilities: The company had established India's largest CCTV manufacturing facility in Tirupati, Andhra Pradesh which has now relocated to Kadapa, Andhra Pradesh. It was the first player in the security and surveillance industry to localize production in India. The Kadapa Facility is spread over 204,157.36 square feet, with over 3,200 personnel (consisting of contractual and on-roll employees) deployed on-site as of March 31, 2025. Its manufacturing capabilities are supported by a well-developed supply chain, with a focus on sourcing from within India. Further, its manufacturing capabilities are augmented by an in-house R&D team comprising 86 employees as of March 31, 2025, which focusses on innovation through its research and development center in Noida, Uttar Pradesh. The infographic sets forth key aspects of its R&D operations.

Risks and concerns

Maximum revenue comes from sale of products supplied by Dahua: A significant portion of its revenue from operations is generated from sale of products supplied by Dahua which contributed to 24.65% of its revenue from operations in Fiscal 2025. Any disruption in the supply of products for sale by Dahua at commercially viable terms, or demand thereof, may adversely affect its business, results of operations, cash flows and financial condition. Further, its distribution agreements with Dahua have certain restrictive covenants and can be terminated without cause, which could negatively impact its business, results of operation and financial condition.

Import parts and materials primarily from China: The company imports a portion of its parts and materials primarily from China. It therefore depends on the economic and political conditions of this country. Negative incidents involving these regions may materially impede its supply chain and operations. Further, while there have been no such instances in the three preceding Fiscals, any imposition of import restrictions, change in geopolitical relationships or other circumstances affecting its ability to import parts and materials could require it to identify alternative sources of these parts and materials.

Geographical constrain: The company has one manufacturing facility, located in Kadapa, Andhra Pradesh, owned and operated by its Material Subsidiary, AIL Dixon. Its business is dependent on its ability to efficiently manage its manufacturing facility and the operational risks associated with it, including those beyond its reasonable control. Due to the geographic location of its manufacturing facility, its operations are susceptible to local and regional factors, such as civil unrest as well as other adverse social, economic and political events in Andhra Pradesh, weather conditions, natural disasters, regional conflicts and other unforeseen events and circumstances.

Depend on a limited number of suppliers for parts, materials and products: The company depends on a limited number of suppliers for the procurement of parts and materials required for its manufacturing operations and products for sale to customers. It sources parts such as chips, lenses, printed circuit board components, housing and sensors for it manufacturing operations from a combination of domestic and foreign suppliers from China. The company has procured 95.38%, 94.02% and 93.02% of parts and materials required for its manufacturing from top 10 suppliers in FY25, FY24 and FY23 respectively. If the company is unable to retain its key suppliers on commercially favourable terms, it may have to seek alternative suppliers as replacements which may result in increased costs, impact quality and cause delays in its manufacturing and sale schedules, which in turn could adversely affect its business, results of operations and reputation.

Outlook

Aditya Infotech manufactures and provides video security and surveillance products, solutions and services under the brand name 'CP Plus'. It is largest Indian player in the growing Indian security and video surveillance market focusing on commercial and consumer segments with strong brand recall. The company has comprehensive portfolio of electronic security and surveillance products, solutions and services, providing end-to-end security solutions across verticals. On the concern side, the company depends on a limited number of suppliers for parts, materials and products. Any interruption in the availability of parts, materials and products could adversely affect its business, results of operations, cash flows and financial condition. Moreover, it imports a portion of its parts and materials primarily from China. Any restrictions on imports or fluctuation in global commodity prices that affect its parts and materials could adversely affect its business, results of operations, cash flows and financial condition.

The issue has been offering 2,02,18,748 shares in a price band of Rs 640-675 per equity share. The aggregate size of the offer is around Rs 1294.00 crore to Rs 1364.77 crore based on lower and upper price band respectively. Minimum application is to be made for 22 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 11.84% from Rs 27,824.26 million in Fiscal 2024 to Rs 31,118.72 million in Fiscal 2025 primarily on account of an increase in operating revenue. Moreover, restated profit after tax increased to Rs 3,513.69 million in Fiscal 2025 compared to Rs 1,151.72 million in Fiscal 2024.

The Government of India has introduced a comprehensive regulatory framework mandating cybersecurity certifications from Government-approved laboratories for all internet-connected CCTV devices sold in India, regardless of their country of origin, with an effective deadline of April 9, 2025. This regulatory development aligns with its long-standing commitment to secure, reliable, and indigenously manufactured surveillance solutions. Some of its product lines are STQC certified, and as such, compliant with the stringent cybersecurity protocols, positioning it to benefit from the evolving regulatory landscape. This framework will provide an impetus to domestic manufacturers of surveillance solutions, including the company, and it remains poised to leverage this opportunity to expand its market share. Its integrated manufacturing operations, robust R&D capabilities, and commitment to quality position it to benefit from this transformation and support the Government’s vision of a self-reliant, secure digital ecosystem.