CP Plus owner Aditya Infotech clears ₹1,500 crore QIP as MOFSL starts Buy coverage
Aditya Infotech, owner of CP Plus, approved a ₹1,500 crore qualified institutional placement. MOFSL initiated coverage with a ₹4,200 target, citing potential share gains in India’s video-surveillance market as STQC norms tighten and the company leverages its 1,000-distributor network.
What happened
Aditya Infotech approved a Rs 1,500 crore QIP as MOFSL began coverage with a Buy and Rs 4,200 target. The CP Plus owner is expected to gain Indian CCTV market
Key facts
- Rs 1,500 crore QIP
- 4% share-price rise
- Rs 3,425 BSE intraday high
- MOFSL target price: Rs 4,200
- 44% video-surveillance market share
- 1,000 distributors
- 2,500 system integrators
- India video-surveillance market: Rs 106 billion in FY25
- Market projected at Rs 227 billion by FY30E
- Market-share projection: over 58% by FY28
- FY26-FY28E revenue CAGR: 44%
- FY26-FY28E EBITDA CAGR: 58%
- FY26-FY28E PAT CAGR: 64%
Why this matters
Aditya Infotech’s planned capital raise and 1,000-distributor network make it a stronger potential partner or competitor for firms seeking scale in India’s increasingly regulated video-surveillance market.
What to watch
- QIP subscription quality, dilution level, final pricing and stated capital deployment timetable.
- Evidence that STQC norms are enforced in government tenders and broaden into enterprise procurement requirements.
- Quarterly revenue growth versus security-equipment peers, distributor additions, inventory days and receivables days.
- Gross-margin and EBITDA-margin trajectory, indicating whether scale is producing operating leverage or funding price competition.
- Order wins in public infrastructure, banking, retail, logistics and smart-city projects.
- Market-share data and management commentary on progress toward the projected FY28 share target.
- Any increase in Chinese-brand pricing aggression, supply-chain disruption or certification-related product delays.
- Launch the QIP, determine issue price and disclose use-of-proceeds allocation, especially between working capital, capex, debt reduction and acquisitions.
- Increase localized/STQC-aligned product launches across cameras, recorders, cloud/software and integrated security offerings.
- Expand distributor and installer incentives to secure shelf space and accelerate replacement demand ahead of competitors.
- Pursue larger government, smart-city, infrastructure, retail-chain and enterprise surveillance contracts that require compliant domestic supply.
- Use stronger equity capital to negotiate component procurement, extend channel credit selectively and improve inventory availability.