IT Stock Skyrockets 19% After Board Approves 100% Acquisition of Infinova

Synopsis: A small-cap technology distribution company saw its shares rally sharply after its board cleared a proposed acquisition aimed at building an in-house, Make in India surveillance technology platform. The deal brings manufacturing capability, brand rights, and an experienced team into the fold, marking a strategic pivot from distribution to product ownership.

Shares of the company rallied as investors cheered a board-approved acquisition that could reshape its business model from a pure distribution play into a technology-owned surveillance platform. The deal, still subject to due diligence and regulatory approvals, comes at a time when India’s video surveillance market is entering a high-growth phase backed by government-led infrastructure spending.

With a market capitalization of Rs. 1,460 crore, the shares of Creative Newtech Limited were trading at Rs. 994.74 per share; the stock went up by 19 percent after the announcement, and they are trading at a P/E of approximately 21x.

The Acquisition Update

Creative Newtech Limited’s board of directors, at a meeting held on 13th July 2026, approved a proposed acquisition of 100% equity share capital of Infinova (India) Private Limited, part of the global Infinova Group, for a budget of up to USD 4 million (Rs. 38.24 crores). The transaction covers Infinova India’s business operations, exclusive brand rights, technical assistance, its existing experienced team, and its product assembly and manufacturing facility located in Pune.

The move is designed to help Creative Newtech transition away from a primarily distribution-led model toward an integrated, technology-led surveillance business. Infinova India brings over two decades of domain expertise, a portfolio spanning smart IP cameras, video management software, network video recorders, video analytics, and AI-based solutions, along with an established service network and marquee project references, including Mumbai Safe City, Nagpur Smart City, over 61 Indian airports, and multiple metro and critical-infrastructure deployments. 

Commenting on the acquisition, Chairman & Managing Director Ketan Patel said the transaction is a major milestone in building a future-ready “Make in India” surveillance platform, adding that technology ownership, manufacturing capability, and an established service network will strengthen the company’s ability to execute at scale as demand shifts toward trusted, locally manufactured surveillance solutions.

The opportunity comes amid robust industry growth. According to the company, India’s video surveillance and security solutions market is estimated at around USD 4.8 billion in 2025 and is projected to reach approximately USD 12.25 billion by 2030, registering a 20-21% CAGR. Government initiatives such as Smart Cities Mission and Safe City Projects, along with increasing adoption of AI-enabled surveillance systems and greater emphasis on domestically manufactured security products, are expected to support long-term demand. 

Financial Snapshot & Business Overview

Founded in 1992, Creative Newtech Limited is a technology distribution and brand licensing company that helps global technology and lifestyle brands establish and scale their presence across India. 

The company operates through a nationwide distribution network spanning 300+ cities and is expanding into owned technology products. Its brand portfolio includes Honeywell, Cricut, Cooler Master, Zion Tech, ViewSonic, CyberPowerPC, Corsair, Samsung, AOC, Rapoo, PNY, Matrix, Sparsh, Instax (Fujifilm), Lexar, OM System, Colorful, and others. 

On the financial front, the company’s consolidated Q4FY26 total income rose 81.16% YoY to ₹740.44 crore, while consolidated EBITDA climbed 52.15% to ₹29.39 crore, with margins declining to 3.97% from 4.73% a year earlier. Consolidated PAT for the quarter grew 29.57% to ₹17.79 crore.

For the full year, consolidated total income for FY26 came in at ₹2,717.51 crore, up 50.85% YoY, while consolidated EBITDA rose 41.73% to ₹104.00 crore. Consolidated PAT for FY26 stood at ₹70.29 crore, a 32.35% jump over the previous fiscal, though margins moderated slightly to 2.59% from 2.95%.

Founded in 1992, the company has built a three-decade legacy as a market-entry and distribution specialist for global technology and lifestyle brands, operating across 300+ Indian cities through online, offline, and retail channels, with an existing surveillance portfolio anchored by partnerships with brands like Sparsh and Matrix.

With India’s surveillance market projected to grow from roughly USD 4.8 billion in 2025 to USD 12.25 billion by 2030, this acquisition may provide the company with the foundation it needs to transition from being a distributor to becoming a genuine technology owner in the surveillance space.

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