ArMee Infotech
What they do: The company is involved in technology services, with a focus on government projects requiring bank guarantees. It has related party transactions with entities influenced by key managerial personnel.
By IPO Milega Research · Published · Updated
The company shows a stable revenue trend with a moderate CAGR of 5%.
- GMP (unofficial)
- +1.6%
- ₹6 a share
- Subscribed
- 2.59x
- Total
- Retail odds
- 38%
- 1 in 2.6
GMP is an unofficial grey market indication.
- Price band
- Price TBA
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- 300 Cr.
- Open23 Sept 2026
- Close25 Sept 2026
- Allotment28 Sept 2026
- Listing30 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 3.2x
- NII
- 2.24x
- Retail
- 2.61x
₹381 (+1.60%)
GMP trend
Unofficial grey market quotes, times in IST
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials5.0
- Performance7.0
- Flexibility7.0
- Timing5.0
- Risk4.0
The Grey Market Premium (GMP) suggests a modest expected gain of 3.20% on listing. This is supported by the company's moderate performance and flexibility scores, indicating potential for growth, albeit with significant risks due to financial instability and reliance on government contracts.
Strengths3
- Revenue from IT infrastructure operations reached ₹1,19,848.88 lakh in FY 2026.
- Successful entry into the renewable energy sector with ₹12,469.60 lakh revenue in FY 2026.
- EPS of ₹19.16 and RoNW of 24.96% in FY 2026.
Concerns5
- Heavy reliance on government contracts for revenue.
- Geographic concentration in Gujarat, Maharashtra, and Tamil Nadu.
- Low success rate in competitive bidding processes.
- Substantial increase in borrowings and potential covenant breaches.
- Delays in paying statutory dues leading to penalties.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum-- lots, - shares
- Retail Maximum-- lots, - shares
- S-HNI Minimum-- lots, - shares
- S-HNI Maximum-- lots, - shares
- B-HNI Minimum-- lots, - shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | - | - | - |
| Retail Maximum | - | - | - |
| S-HNI Minimum | - | - | - |
| S-HNI Maximum | - | - | - |
| B-HNI Minimum | - | - | - |
Timing
5.0/10The timing of the IPO appears to be moderate. While the company is entering the market amidst economic uncertainties, which could deter some investors, it may also attract those looking for opportunities in volatile markets. The presence of global financial instability and domestic inflation concerns could lead to increased market volatility, affecting the IPO's success.
- Time to market
- The IPO is being launched in a challenging economic environment with potential for high market volatility due to global financial instability and domestic inflation concerns. This timing could be seen as risky, but it might also appeal to investors seeking opportunities in uncertain markets.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE, NSE
Key milestones
- 23 Sept 2026IPO Opens
- 25 Sept 2026IPO Closes
- 28 Sept 2026Basis of Allotment
- 29 Sept 2026Refunds Initiated
- 29 Sept 2026Credit to Demat Account
- 30 Sept 2026Listing Date
Financials
5.0/10- Revenue
- ₹1,410 Cr
- +7.2%
- Profit after tax
- ₹45.47 Cr
- +9.1%
- Net margin
- 3.2%
- +0.1 pts
- Assets
- ₹959 Cr
- +15.7%
- Return on equity
- 28.52%
- Debt to equity
- 4.68
- Revenue CAGR
- 5%
- ROCE
- 24.10%
- Return on net worth
- 24.96%
- NAV per share (₹)
- 76.77
Financial performance trend
Amount ₹ in croresThe company shows a stable revenue trend with a moderate CAGR of 5%. However, the net profit has been inconsistent, showing a declining trend over the past three years. The company's financial health is concerning due to high liabilities, resulting in a high debt-to-equity ratio of 4.68, indicating significant leverage. The current and quick ratios are not available, limiting the assessment of liquidity. Overall, the fundamentals are moderate, with concerns about profitability and leverage.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks2
- Operational risks1
High reliance on government contracts and geographic concentration pose significant risks, alongside financial instability due to high borrowings and statutory dues.
How the company offsets these
Diversifying client base and geographic reach can mitigate reliance on government contracts and geographic concentration.
Financial risks4
- Substantial increase in borrowings and potential covenant breaches.
- Delays in paying statutory dues leading to penalties.
- Decline in Profit After Tax despite revenue growth.
- Dependence on personal guarantees for borrowings.
Market risks2
- Heavy reliance on government contracts for revenue.
- Geographic concentration in Gujarat, Maharashtra, and Tamil Nadu.
Operational risks1
- Low success rate in competitive bidding processes.
Performance
7.0/10ArMee Infotech Limited operates primarily in IT infrastructure and renewable energy sectors, with significant revenue from government and PSU projects. The company has shown moderate growth and profitability, but faces risks due to reliance on government contracts and challenges in the renewable energy sector.
- Historical growth
- The company reported a 7.17% increase in total income from FY 2025 to FY 2026, driven by renewable energy projects, despite a decline in IT Managed Services revenue., Moderate
- Market comparison
- The company operates in a growing IT and renewable energy market, driven by government initiatives like Digital India, but faces competition from private sector companies expanding in rural areas.
- Future potential
- The company is expected to benefit from increased digital infrastructure spending and rising demand for IT services in rural areas.
- Operational consistency
- Revenue growth is driven by new sectors, but traditional services have declined, indicating a shift in focus and potential instability.
- Experience
- The management has experience in acquiring government and PSU projects through competitive bidding.
- Track record
- The company has a track record of adhering to quality standards and timelines in project execution.
Key achievements
- 01Revenue from IT infrastructure operations reached ₹1,19,848.88 lakh in FY 2026.
- 02Successful entry into the renewable energy sector with ₹12,469.60 lakh revenue in FY 2026.
- 03EPS of ₹19.16 and RoNW of 24.96% in FY 2026.
Flexibility
7.0/10The company is well-positioned to adapt to market changes, leveraging government initiatives and private sector growth in IT infrastructure and renewable energy. Its focus on digital payments and data migration aligns with national trends, enhancing its adaptability.
The company has demonstrated operational agility by expanding into new sectors like renewable energy and experience zones. Its ability to execute large-scale government projects and adapt to diverse client needs across sectors showcases its operational flexibility.
The company demonstrates a moderate level of flexibility and adaptability, with strengths in market adaptability and operational agility, but faces challenges in financial stability and product diversification.
- Product diversification
- The company has diversified into IT infrastructure, managed services, renewable energy, and experience zones. However, a significant portion of its revenue still comes from IT infrastructure, indicating limited diversification.
- Future adaptability
- The company's strategic focus on digital transformation, renewable energy, and expanding geographical presence suggests strong potential for future adaptability. However, its heavy reliance on government contracts may limit flexibility in adverse regulatory environments.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.