ArMee Infotech
IPO Size: Rs. 300 cr, entirely Fresh Issue
- Rs. 155 cr for using as project bank guarantee for business growth
- Rs. 60 cr for working capital
- Rs. 6.5 cr repay of Rs. 212 cr gross debt
Price band: Rs. 350-375 per share
M cap: Rs. 1,190 cr, implying 25% dilution
- Max 25% to institutional investors and minimum 52.5% to retail
IPO Date: Wed 23rd Sep to Fri 25th Sep 2026, Listing Wed 30th Sep 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
IT Infrastructure Company diversifying into Solar EPC
ArMee Infotech is a 23-year-old Ahmedabad-based IT infrastructure and IT managed services company, with Rs. 1,400 cr revenue split 86% and 5% between the two verticals respectively.
In FY26, company ventured into an unrelated field of renewable energy, with engineering, procurement and construction (EPC) of solar power projects and development of solar power projects under power purchase agreements and Battery Energy Storage System, which accounted for 9% of the topline. As of 30.6.26, order book for solar EPC is Rs. 1,377 cr and Rs. 595 cr for battery storage.
No Profit Growth
FY26 revenue grew at 6% YoY to Rs. 1,397 cr, despite new vertical of renewable energy accounting for Rs. 125 cr revenue, as both IT infrastructure and IT managed services revenue declined YoY.
In FY24, company’s EBITDA was Rs. 72 cr, which stood at Rs. 76 cr in FY26, despite 17% revenue CAGR during the 2 fiscals. Net profit declined from Rs. 50 cr in FY24 to Rs. 45 cr in FY26, with net margin very slim at 3.3%. Thus, company’s IT business is very low margin. EPS for FY26 stood at Rs. 19.2.
As 83% revenue comes from Government and PSU clients, debtors outstanding stand at Rs. 513 cr or nearly 4.5 months of revenue. FY26 RoE was 29%, but will shrink to mid-teens, due to high dilution and a large need for growth capital.
Expensive Micro-Cap Stock
M cap of Rs. 1,190 cr and Enterprise Value (EV) of Rs. 1,300 cr implies a historic PE multiple of 19.6x and an EV/EBITDA multiple of 17x, on FY26 basis. This is quite high for an EPC company, and even for an IT infra.
