IPO Details
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IPO Size
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Schedule of Armee Infotech Ltd IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Armee Infotech Ltd
The IPO of Armee Infotech Ltd is a 100% book-built issue. It comprises only a fresh issue aggregating up to ₹300 crore. There is no offer for sale. The total issue size is pegged at ₹300 crore.
Objectives of Armee Infotech Ltd IPO
The company proposes to utilise the IPO proceeds for:
- Expansion of business by procuring new Government/PSU projects;
- Funding their working capital requirements
- Prepayment or repayment certain outstanding borrowings availed by the company
- General corporate purposes
Armee Infotech Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to ₹300 crore |
Offer for Sale | NA |
EPS in ₹ for FY 24 | 21.12 |
Armee Infotech Ltd IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the issue |
Non-institutional Bidders | Not less than 15% of the issue |
Retail Individual Bidders | Not less than 35% of the issue |
Industry Outlook
Indian IT industry is export oriented with exports contributing to nearly 79% of total industry revenue in FY 2023. India’s IT export revenue is estimated to have grown to USD 194 billion in FY 2023 from USD 178 billion in FY 2022, registering 9% Y-o-Y growth, while domestic IT industry revenue is estimated to have grown by 4.1% on Y-o-Y basis to reach USD 51 Bn in FY 2023.
According to estimates, the Indian IT industry is expected to grow at a CAGR of 7.2% to reach USD 323 billion by 2027. The global shift towards digitalisation has increased the demand for IT services across industries. Indian IT firms, with their expertise in software development, cloud solutions, and system integration, are well-positioned to capitalise on this trend.
Company Information
Armee Infotech Ltd is an IT Infrastructure solutions and IT managed services company headquartered in Ahmedabad, Gujarat. It is sector agnostic and services a wide variety of projects for both Government/public sector undertakings (PSUs) and private sector with a focus on Government/PSU projects and a predominant presence in the state of Gujarat.
Under the IT Infrastructure category, they provide IT hardware and software (e.g., computers, servers, interactive panels and their peripherals), work on the installation and integration of the hardware and software as per client requirements. They also provide maintenance of the IT Infrastructure installed by them for periods as may be specified under the relevant contracts.
Armee Infotech Ltd Strengths
Proven track record in executing projects for Government and PSU clients
The company has a proven track record in executing projects for Government and PSU clients. For the nine months period ended December 31, 2024, Fiscal 2023, and FY 2022, it has serviced and completed 62, 36, and 36 projects, respectively, for Government and PSU clients. In the same period, it has executed projects worth ₹9,283.073 crores, ₹4,255.285 crores, and ₹728.795 crores respectively.
Ability to service IT Infrastructure solutions and IT managed services to clients engaged in diverse sectors
As an IT Infrastructure and IT managed services company, it’s sector agnostic and has serviced a wide variety of projects for both Government/PSUs and private sector clients. Its strength lies in being able to provide IT Infrastructure and IT managed services to clients engaged in diverse sectors. They have provided IT Infrastructure and IT managed services to various sectors including education, healthcare, public distribution system, rural & urban development, science & technology sectors etc.
Being sector agnostic helps them mitigate risks associated with specific industries that may experience downturns or economic fluctuations and allows them to be flexible and adaptable to new sectors
Experienced Board of Directors and management with extensive domain knowledge
The company’s operations are conducted by an experienced management team that has significant expertise in all aspects of its business operations. Its promoters, Kiritkumar Chimanbhai Patel and Ami Ridhish Patel have been associated with the company since its inception and have an experience of over two decades each in the IT Infrastructure industry and its promoter, Ridhish Kiritbhai Patel joined the operations of the Company as an Executive Director on May 22, 2012 and has an experience of more than a decade in the IT Infrastructure industry.
Risks of Armee Infotech Ltd
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The company depends on orders from the Government/PSU clients for the majority of its revenue, which may expose it to risk. Additionally, the loss of or inability to qualify for such orders may adversely affect its business, financial condition, results of operations and prospects.
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The company is dependent on their technology partners for various hardware and software products which they provide to their clients. As of September 30, 2024, 84.29% of their purchase from Technology Partners are from top three technology partners. The failure of their technology partners to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect their business and their ability to deliver orders on time.
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Most of its business operations are concentrated in the state of Gujarat. Due to this geographic concentration of its business operations, its results of operations and growth might be restricted to the economic and demographic conditions of Gujarat.
All Financial Information about Armee Infotech Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter for FY 24 | Armee Infotech Ltd | Dynacons Systems & Solutions Ltd |
|---|---|---|
Total Revenue (in ₹ crore) | 1020.57 | 1024.46 |
P/E | NA | 29.35 |
Return on Net Worth in % | 52.67% | 34.13% |
EPS in ₹ | 21.12 | 42.41 |
IPO Registrar and Book Running Lead Manager
Cameo Corporate Services Ltd is the registrar of Armee Infotech Ltd IPO. The book running lead managers are Khandwala Securities Ltd and Saffron Capital Advisors Pvt Ltd.
Business Model
Under IT Infrastructure solutions, Armee Infotech Ltd provides IT hardware and software, work on the installation and integration of the hardware and software as per the client requirements. It also provides maintenance of the IT Infrastructure installed by it for periods as may be specified under the relevant contracts.
Under the IT managed services category, in addition to providing IT Infrastructure solutions as mentioned above, the company also provides technical manpower, skill development training and offers annual maintenance services. They are also into the renewable energy sector vide solar EPC and PPAs.
Company Growth Trajectory
The company has a strong balance sheet and has successfully demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations jumped from ₹105.0529 crore in FY 21 to ₹502.6951 crore in FY 23. Its EBITDA increased from ₹11.3025 crore in FY 21 to ₹17.0405 crore in FY 23. As part of their strategic diversification, they have ventured into renewable energy vide solar EPC and PPAs to cater to the burgeoning renewable energy vide solar EPC and PPAs market.
Market Position
The company has a proven track record in executing projects for Government and PSU clients. It has a predominant presence in the state of Gujarat. Out of the 13 ongoing projects, 10 projects are being serviced in Gujarat and one project each is being serviced in Uttar Pradesh, Karnataka and Bihar. The company has provided IT Infrastructure and IT managed services to various sectors including education, healthcare, public distribution system, rural & urban development, science & technology sectors etc.
Armee Infotech Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 21 |
|---|---|---|---|
Total Income (in ₹ crore) | 1,023.99 | 515.67 | 127.44 |
Profit Before Tax (in ₹ crore) | 63.78 | 19.49 | 4.67 |
EBITDA (in ₹ crore) | 71.57 | 17.04 | 12.23 |
EPS in ₹ | 21.12 | 6.98 | 1.42 |
Armee Infotech Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 63.78 | 19.49 | 4.67 |
Net Cash Generated From/ (used in) Operating Activities (in ₹ crore) | 55.18 | (6.77) | (2.17) |
Net Cash Flows Generated From/ (used in) Investing Activities (in ₹ crore) | (21.31) | 5.51 | 2.33 |
Net Cash Generated From/ (Used in) Financing Activities (in ₹ crore) | (13.04) | 1.486 | (1.938) |
Cash and Cash Equivalents (in ₹ crore) | 21.31 | 4607 | 2415 |
How to Check Allotment Status of Armee Infotech Ltd IPO?
You can check the allotment status of Armee Infotech Ltd through the BSE website or through its registrar. To check the status from the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check status through the registrar's portal:
- Visit the website of Cameo Corporate Services Ltd
- Click on any of the three links
- Choose the name of the company from dropdown
- Choose either PAN, DP Client ID or Application No
- Enter captcha and click on Submit
How To Apply for Armee Infotech Ltd IPO?
Here are the steps to apply for Armee Infotech Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
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 research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Armee Infotech Ltd IPO FAQs
What is Armee Infotech Ltd IPO?
The IPO of Armee Infotech Ltd consists entirely of a fresh issue with no offer for sale. The IPO is pegged at ₹300 crore.
When will the IPO of Armee Infotech Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I get more information about Armee Infotech Ltd and its IPO?
You can more information about Armee Infotech Ltd and its IPO from the company’s draft red herring prospectus here.
