Armee Infotech Ltd IPO - Check Issue Price, Lot Size and Other Important Details
As the IPO market heats up, Armee Infotech Ltd has filed draft papers with SEBI to raise funds. The company’s IPO consists of a fresh issue with no offer for sale. If you want to invest in Armee Infotech Ltd IPO, read the below article first.
About Armee Infotech Ltd
Armee Infotech Ltd is an IT Infrastructure solutions and IT managed Services Company headquartered in Ahmedabad, Gujarat. The company is sector-agnostic and services diverse projects for government/public sector undertakings (PSUs) and the private sector, focusing on government/PSU projects and having a predominant presence in Gujarat. Under IT Infrastructure solutions, it provides:
- IT hardware and software
- Installation and integration of the hardware and software as per the client requirement
- Maintenance of the IT Infrastructure installed by the company for periods as may be specified under the relevant contracts
Armee Infotech Ltd IPO details
Here are the key details of this IPO:
| Particulars | Lot size, price and other details |
|---|---|
IPO opens on | To be announced |
IPO closes on | To be announced |
Fresh issue | ₹250 crores |
Total issue size | ₹250 crores |
Face value | ₹10 |
Lot size | To be announced |
Minimum investment | To be announced |
Book running lead managers | Khandwala Securities Ltd Saffron Capital Advisors Pvt Ltd |
Registrar name | Cameo Corporate Services Ltd |
Use of IPO proceeds
The company plans to utilise the proceeds from the IPO for:
- Augmentation of the company's working capital requirements
- Payment/repayment of certain outstanding borrowings of the company
- General corporate purposes
Financial snapshot
It is crucial for you as an investor to be aware of a company’s finances before investing in its IPO. Here are some key information about the company’s financials:
| Particulars | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total equity and liabilities (in ₹ crores) | 216.046 | 124.415 | 118.3888 |
Total income (in ₹ crores) | 515.6742 | 127.449 | 106.2541 |
Profit after tax (in ₹ crores) | 16.5746 | 3.3641 | 3.7260 |
Earnings per share (in ₹) | 41.91 | 8.51 | 9.42 |
Offer structure
Here is how the offer is structured for various categories of investors:
| Investor category | Percentage of offer |
|---|---|
Qualified institutional bidders (QIBs) | At least 75% of the issue |
Non-institutional bidders (NIBs) | Not more than 15% of the issue |
Retail individual bidders | Not more than 10% of the issue |
Company’s strengths
Here are some of the strengths of Armee Infotech Ltd:
- Proven track record in executing projects for Government and PSU clients
- Consistent track record of financial performance
- Ability to service IT Infrastructure solutions and IT managed services to clients engaged in diverse sectors
- Experienced Board of Directors and management with extensive domain knowledge
Business strategies
Given below are the strategies that Armee Infotech Ltd looks forward to pursuing in the coming days:
- Expanding and augmenting its products and services portfolio
- Continue to expand its geographical footprints
- Continue to bid for Government/PSU projects while also focusing on expanding its operations to private clients
Industry overview
According to NASSCOM, the Indian Information Technology (IT) Industry is estimated to have generated USD 244.6 billion in revenue in FY 2023. Between FY 2020 and FY 2023, the revenue in the Indian technology industry grew at a CAGR of 9.60%, recording phenomenal growth. The Indian IT sector is experiencing a boom, with overall spending projected to reach a staggering USD 138.9 billion in 2024, reflecting a healthy 13.2% growth from 2023.
Wrapping it up
Do your homework carefully before investing in any IPO, and Armee Infotech Ltd is no different. Read the company’s red herring prospectus (RHP) to learn its finer aspects before investing.
Disclaimer: 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 own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
