The company has set the IPO prize tire between RS 640 and RS 675 per share. The issue includes the sale of 1.93 Crore new shares shares, which means that the company is new capital to the fences by offering newly issued shares to the public.
Aditya Infotech IPO subscription Update
On the last day of the subscription, the IPO received a general subscription of 8.88 times for the 1.12 Crore shares offered to the public. Retail investors showed great enthusiasm, subscribed 23.87 times, while non-institutional investors (NIIS) subscribed 16.32 times. Participation of qualified institutional buyers (QIBS), however, was limited at around 25%, even though they were assigned 60.65 Lakh shares.
The shares of Aditya Infotech are expected to be mentioned on both BSE and NSE on 5 August.
Aditya Infotech IPO GMP today
The Gray Market Premium (GMP) for the IPO is approximately RS 285 above the issue price of RS 675, suggesting that the shares act unofficially around RS 960 prior to their market debut. This implies a potential list profit of around 42%, which reflects strong investor confidence and a positive market sentiment. Although unofficially, the GMP offers an early indication of demand and expected performance before the official list.
Business overview and financial data
Aditya Infotech is a leading distributor with added value (VAD) in India for electronic security equipment. The company works together with global brands such as Dahua, Seagate, TP-Link, Panasonic and others, distribute over 650+ cities through more than 15,000 channel partners. The portfolio includes video supervisory products, access control systems and network solutions catering to government customers, companies, and Smes. Crore to RS 3,212 Crore. Profit after tax (pat) more than doubled from RS 102 Crore in FY22 to RS 210 Crore in FY24.
EBITDA -Marges improved documents from 9.6% to 10.7% in the same period. However, analysts note that the company remains working capital intensive and exposed to global supply chain risks.
Aditya Infotech IPO valuation and recommendation
At the top price band of RS 675, Aditya Infotech is appreciated on a p/e of 36.2x on FY24 income – compared to colleagues in industry such as Redington and Ingram Micro in a premium. The IPO wants to collect funds mainly for working capital requirements (RS 600 Crore), where the rest is assigned to general business purposes.
Brokerage company Bajaj Broking has assessed the IPO as “subscribe with caution”. While the strong brand partnerships of the company, the consistent growth and the broad distribution network recognize, the Note marks its high valuation and moderate return ratios (ROE of 22% and ROCE of 20%) as potential concerns.
((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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