IPO Details
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IPO Size
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Schedule of Armour Security (India) IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Armour Security (India) IPO
The IPO of Armour Security (India) Ltd consists entirely of a fresh issue of up to 46,50,000 equity shares. There is no offer for sale and it’s a 100% book-built issue.
Objectives of Armour Security (India) IPO
- Funding working capital requirements of the Company
- Funding capital expenditure requirements for purchasing of machinery, equipment and vehicles
- Prepayment/re-payment of, in part or full, certain outstanding borrowings of the company
- General corporate expenses
Armour Security (India) Valuation
Armour Security (India) Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the net issue |
Retail individual Bidders | Not less than 35% of the net issue |
Industry Outlook
The global private security market size is projected to be worth US$ 3,51,893.2 million by 2034. According to the estimates, the market is anticipated to exhibit a 3.60% CAGR until 2034. The Indian private security market is expanding at a rapid pace, expected to have an annual growth rate of 9.93%.
The private security sector has emerged into a major industry by virtue of the employment of a large body of manpower, both skilled and unskilled, to meet the burgeoning demands of the corporate sector across the SMSE spectrum. Key drivers for the exponential growth of this sector are attributed to the increase in urbanisation, increasing perception of insecurity amongst the civil society, emergence of contained commercial complexes and residential townships, and shortage of police personnel.
Company Information
Armour Security (India) Ltd delivers comprehensive private security solutions to its clientele, encompassing security planning and management services. The company provides both individual security personnel and full security teams, tailored to diverse sectors such as corporate, industrial, banking, healthcare, governmental institutions, educational establishments, and universities.
Its services are tailored to address the distinct security needs of each client. To effectively meet the varied requirements and increasing demands of its clients nationwide, the company leverages modern equipment and a trained workforce. Additionally, it offers integrated facility management, housekeeping, and manpower services, comprising skilled, semi-skilled, and unskilled personnel.
Armour Security (India) IPO Strenghts
Diversified Services Portfolio
One of the company’s core competitive strengths lies in its diversified service portfolio. Armour Security offers a range of services encompassing security, housekeeping, integrated facility management, and manpower solutions. This diversity allows it to cater to a wide array of client needs, ensuring it can address various aspects of security and facility management efficiently and comprehensively.
Technology Integration
The strength of the company lies in its robust technological infrastructure, which includes an Enterprise Resource Planning (ERP) system for seamless integration of core functions, optimum use of email and communication system for efficient internal and external collaboration, and the use of smartphones to facilitate real-time communication, location sharing, and group interactions and coordination among its staff. These technological assets empower it to optimise resource management, data-driven decision-making, and communication efficiency, enhancing its overall operational capabilities and client service.
Compliance and Certifications
Armour Security is dedicated to maintaining the quality standards in the industry. The company is ISO certified, which reflects its commitment towards the quality of its services. Additionally, it possesses licenses of PSARA (Private Securities Agencies Regulation Act) which exemplify its compliance with industry regulation practices. These certifications reinforce its credibility and signify its dedication to providing reliable services.
Risks of Armour Security (India) IPO
- Dependence on Security Manpower and Integrated Facility Management Services
The company is significantly dependent on the provision of its services namely, Security manpower services and Integrated facility management. Its aggregate revenue from Security manpower services and Integrated facility management accounted for 46.12% and 53.88% respectively for the period ended 30 September 2024, 47.67% and 52.33% respective for the period ended March 2024, 44.32% and 55.68% respectively for the period ended March 2023, 51.16% and 48.84% respectively for the period ended March 2022.
An inability to anticipate and adapt to evolving client preferences and demand for the said services, or ensure service quality, may adversely impact demand for its services, brand loyalty and consequently impact its business, results of operations, financial condition and cash flows.
- Reliance on Key Customers
The company’s revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations. Few clients may represent a larger part of its client portfolio, increasing the potential volatility of its results.
The company cannot assure that it shall generate the same quantum of business, or any business at all, and the loss of business from one or more of them may adversely affect its revenues and results of operations.
- Geographical Concentration
A significant portion of its revenue is derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.
All Financial Information about Armour Security (India)
Peer Comparison
| Company Name | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|
Armour Security (India) Ltd | 2.04 | 14.68 | 13.87 |
Rithwik Facility Management Services Ltd | 8.63 | 12.78 | 67.54 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
Skyline Financial Services Pvt Ltd is the registrar of the Armour Security (India). The book-running lead managers are
- Corpwis Advisors Pvt Ltd
Armour Security (India) Business Model
Armour Security (India) Ltd delivers comprehensive private security solutions to its clientele, encompassing security planning and management services. It provides both individual security personnel and full security teams, tailored to diverse sectors such as corporate, industrial, banking, healthcare, governmental institutions, educational establishments, and universities.
Its services are tailored to address the distinct security needs of each client. To effectively meet the varied requirements and increasing demands of its clients nationwide, it leverages modern equipment and a trained workforce. Additionally, it offers integrated facility management, housekeeping, and manpower services, comprising skilled, semi-skilled, and unskilled personnel.
Armour Security (India) Growth Trajectory
The company’s PAT margin grew from 1.09% in FY 22 to 7.95% in FY 24. Its EBITDA margin also recorded a growth from 1.96% in FY 22 to 11.08% in FY 24.
Armour Security (India) Market Position
Originating from a single office in Defence Colony, Delhi, over the last two decades Armour Security (India) Ltd has expanded its operations across PAN India, consistently delivering our quality services. The company has established branch offices in various states of India which helped it to navigate the ever-changing dynamics of the security market.
By meticulously selecting its clients, it has accumulated substantial experience, developed methodologies, and honed its capabilities, ensuring the provision of Manpower Security, Integrated Facility Solutions.
Armour Security (India) Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 33.1010 | 28.9708 | 26.9084 |
Profit /(Loss) Before Tax (in ₹ crores) | 3.4980 | 3.0156 | 0.3892 |
Profit After Tax (in ₹ crores) | 2.6176 | 2.2566 | 0.2913 |
EPS in ₹ | 2.14 | 2256.60 | 291.27 |
Armour Security (India) Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit /(Loss) Before Tax (in ₹ crores) | 3.4980 | 3.0156 | 0.3892 |
Net Cash Flow from Operating Activities (in ₹ crores) | 0.5406 | 0.4542 | 2.2345 |
Net Cash Flow from Investing Activities (in ₹ crores) | (2.0059) | (0.5494) | (1.7662) |
Net Cash Flow in Financing Activities (in ₹ crores) | 2.7755 | 0.1195 | (0.5283) |
Cash and Cash Equivalent (in ₹ crores) | 1.7322 | 0.4220 | 0.3977 |
How to Check Allotment Status of Armour Security (India)?
- Visit the Registrar’s Website
- Visit the official website of Skyline Financial Services Pvt Ltd
- Choose ‘Public Issue’ from ‘Investor’ dropdown
- Select the Name of the Company from dropdown
- Enter either your ‘Application No’, PAN or DP ID / Client ID
- Click on ‘Search’ to know the status
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Armour Security (India) Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Armour Security (India) 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.
Armour Security (India) IPO FAQs
Where can I read more about Armour Security (India) business?
You can read more about Armour Security (India) and its IPO from the company’s red herring prospectus (RHP) here.
What is the Armour Security (India) IPO?
The IPO of Armour Security (India) comprises up to 46,50,000 equity shares. It’s entirely a fresh issue with no offer for sale.
When will the IPO of Armour Security (India) go live?
The exact dates of the IPO are yet to be announced.
Who is the MD of Armour Security (India) Ltd?
Arnima Gupta is the MD of Armour Security (India) Ltd.
From where can I read more about Armour Security (India) IPO?
You can read more about the IPO of Armour Security (India) Ltd from the company’s draft red herring prospectus here
