ArMee Infotech IPO enters Day 3 with 1.17x subscription; GMP at 5%. Should you subscribe?

The ArMee Infotech IPO entered its third and final day of bidding on Friday, September 25, with the issue witnessing moderate investor interest. In the grey market, the IPO is currently commanding a GMP of around 5%, indicating expectations of a modest premium over the issue price, based on the prevailing unofficial market indicator.

By the end of Day 2, the issue was subscribed 1.17 times overall, with bids received against the 74.30 lakh shares on offer.

The Rs 300-crore ArMee Infotech IPO will remain open for subscription until September 25, 2026. The basis of allotment is expected to be finalised on September 28, while the company’s shares are tentatively scheduled to list on both the NSE and BSE on September 30.


Read more: NSE IPO Tracker: Catch all the highlights here

The book-built issue comprises an entirely fresh issue of 80 lakh equity shares, aggregating to Rs 300 crore, with no offer-for-sale component.

The company has fixed the IPO price band at Rs 350 to Rs 375 per share, while the lot size is 40 shares. At the upper end of the price band, retail investors will need a minimum investment of Rs 15,000 for one lot.

Khandwala Securities Ltd. and Saffron Capital Advisors Pvt. Ltd. are the book-running lead managers for the issue, while Cameo Corporate Services Ltd. is the registrar.

ArMee Infotech IPO subscription status:

On day 2, the overall issue was subscribed 1.17 times against the 74.30 lakh shares offered

Retail Individual Investors (RIIs) subscribed 1.35 times the 45 lakh shares offered.

Non-Institutional Investors (NIIS) subscribed 86% of the 19.28 lakh shares offered.

Qualified Institutional Buyers (QIBs) subscribed 94% of the 10.01 lakh shares offered.

IPO proceeds

According to the company, the net proceeds from the IPO will be used for business expansion, working capital requirements, repayment or prepayment of certain borrowings and general corporate purposes.

The company has earmarked Rs 155 crore for expanding its business by procuring new government and PSU projects. Another Rs 60 crore will be used to meet working capital requirements, while Rs 6.50 crore has been earmarked for the prepayment or repayment of certain outstanding borrowings. The remaining proceeds will be used for general corporate purposes.

Should you subscribe to ArMee Infotech IPO?

Anand Rathi Research has assigned a “Subscribe – Long Term” rating to the issue. According to the brokerage's research report, at the upper price band, ArMee Infotech is valued at 26.2 times FY26 price-to-earnings (P/E) and 17.83 times FY26 enterprise value-to-EBITDA (EV/EBITDA), implying a post-issue market capitalisation of Rs 11,899 million.

The brokerage highlighted the company's established presence in IT infrastructure and IT managed services, sizeable government and PSU client base, ongoing project pipeline and expansion into renewable energy as factors supporting its growth prospects. The research view is Anand Rathi's assessment and should not be treated as a guarantee of the company's future performance or stock-market returns.

ArMee Infotech financial performance

ArMee Infotech reported an improvement in both revenue and profit in FY26 compared with FY25. Total income increased from Rs 1,316 crore in FY25 to Rs 1,410 crore in FY26, representing growth of around 7%. Profit after tax (PAT) rose from Rs 42 crore in FY25 to Rs 45 crore in FY26, an increase of around 9%.

Read more: Swastika Infra IPO Day 3: Issue subscribed over 1.6x; GMP signals 5% premium — Check key details

About ArMee Infotech

Founded in 2003 and headquartered in Ahmedabad, Gujarat, ArMee Infotech Ltd. is an IT infrastructure solutions and managed services company. As part of the ArMee Group, the company provides end-to-end technology solutions to clients across sectors including government, corporates, banking, financial services and insurance (BFSI), and education. The company has also diversified into retail sales and renewable energy, expanding its operations beyond its core IT infrastructure and managed services business.

Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here