Armee Infotech Files for ₹250 Crore IPO

25 Jun 2024 , 09:31 AM

Armee Infotech, an Ahmedabad-based IT Infrastructure solutions company, has filed preliminary papers with SEBI to raise ₹250 Crore through its initial public offering (IPO).

The IPO consists entirely of fresh issues of shares with no offer-for-sale component. The funds raised (excluding IPO expenses) will primarily be used for working capital requirements amounting to ₹160 Crore and repayment of debts totalling ₹10.63 Crore. The remaining funds will be utilized for general corporate purposes.

As of April this year, Armee Infotech’s outstanding borrowings stood at ₹79.8 Crore. The Patel family holds 92.72% of the company’s shares, with the remaining owned by public shareholders.

Armee Infotech provides IT-managed services and has shown significant financial growth. In the nine months ended December FY24, it reported a profit of ₹24.96 Crore on revenue of ₹560.2 Crore. In FY23, its profit grew by 393% to ₹16.6 Crore compared to ₹3.4 Crore in the previous year, while revenue from operations rose by 301.6% to ₹502.7 Crore.

However, in FY22, the company’s profit was ₹3.4 Crore, down 9.7% from ₹3.7 Crore in FY21, despite a 19.2% increase in revenue to ₹125.2 Crore during the same period.

Khandwala Securities and Saffron Capital Advisors are the book-running lead managers for the IPO.