An Ahmedabad-based IT-infrastructure and managed-services company opens its Rs 300 crore mainboard issue on September 23
ArMee Infotech Ltd (AIL) is an IT-infrastructure and IT-managed-services company that has branched into two adjacent growth verticals — technology retail (Experience Zones) and renewable energy (solar EPC, PPA and BESS). It’s a play on India’s government-led digitisation and clean-energy push, with a majority of revenue currently derived from servicing Government/PSU projects.
The core business is IT solutions for the public sector. Under IT Infrastructure, AIL provides IT hardware and software, installation and integration, and maintenance and functional training; under IT Managed Services, it offers technical manpower, skill-development training and annual maintenance.
It services Government/PSUs and private-sector clients where the end users are often Government/PSUs — a base that contributed 83.8% of FY26 revenue.
AIL has expanded into Renewable Energy — EPC of solar power projects, development of solar projects under power-purchase agreements (PPAs), and Battery Energy Storage Systems (BESS) — and operates two single-brand exclusive Experience Zones in Ahmedabad (retail sale of IT, consumer electronics, gaming and merchandise, including Acer stores). Its future roadmap spans payment devices, data migration, STEM Labs, Atal Tinkering Labs and more BESS.
As of June 30, 2026, AIL had 99 ongoing projects — 65 IT Infrastructure, 21 IT Managed Services, 10 Renewable Energy EPC, 1 PPA and 2 BESS — with an aggregate order value of Rs 2,66,344.35 lakh (~Rs 2,663 crore), with the renewable-energy EPC/PPA/BESS projects accounting for a significant portion. The promoters are Ami Ridhish Patel, Kiritkumar Chimanbhai Patel and Ridhish Kiritbhai Patel.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 23, 2026 |
| Issue Closes | September 25, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 30, 2026 |
| Price Band | Rs 350 – Rs 375 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 300 crore (80 lakh shares, entirely fresh) |
| Offer for Sale | Nil |
| Lot Size | 40 shares |
| Min. Retail Investment | Rs 15,000 |
| Post-Issue Market Cap | Rs 1,189.9 crore |
| Lead Managers | Khandwala Securities, Saffron Capital Advisors |
| Registrar | Cameo Corporate Services Ltd. |
The issue is entirely a fresh issue. From the net proceeds, AIL will utilise funds for expansion of business by procuring new Government/PSU projects, funding working-capital requirements, prepayment or repayment of certain outstanding borrowings, and general corporate purposes.
Post-issue, promoter and promoter group shareholding falls from 92.7% to 69.3%, with public shareholding rising to 30.7%.
Price Band
At the upper band of Rs 375, on FY26 earnings the issue is valued at a P/E of about 26.2x and an EV/EBITDA of 17.83x, for a post-issue market cap of about Rs 1,190 crore (Rs 11,899 million).
GMP Watch
Grey-market interest has been modest. In tracked data, the ArMee Infotech IPO GMP stood at around ₹12 as of the days before opening — implying a listing gain of only about 3% over the Rs 375 upper band.
Financial Performance
| Particulars (Rs million) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 10,206 | 13,133 | 13,966 |
| EBITDA | 716 | 586 | 756 |
| EBITDA Margin (%) | 7.0 | 4.5 | 5.4 |
| PAT | 501 | 417 | 455 |
| PAT Margin (%) | 4.9 | 3.2 | 3.3 |
| EPS (Rs) | 15.8 | 13.1 | 14.3 |
Revenue from operations grew from Rs 10,206 million in FY24 to Rs 13,966 million in FY26 (though growth moderated to 6.3% in FY26 from 28.7% in FY25). But profitability has been choppy and thin: EBITDA moved Rs 716m → Rs 586m → Rs 756m, and PAT actually declined from Rs 501 million (FY24) to Rs 417 million (FY25) before recovering to Rs 455 million (FY26) — so FY26 PAT still sits below FY24.
EBITDA margin ~5.4% and PAT margin ~3.3% in FY26 — characteristic of the low-margin, hardware-and-integration-heavy government IT-supply business, where large revenue doesn’t translate into high profitability. Finance costs also jumped (to Rs 249 million in FY26).
This is a high-turnover, thin-margin business where the renewables diversification is intended to lift the profitability mix over time. The company reported an EPS of Rs 14.3 for FY26.
According to a note by Anand Rathi Research, “at the upper price band, the company is valued at 26.2x FY26 P/E and 17.83x FY26 EV/EBITDA, implying a post-issue market capitalization of ₹11,899 million. The company’s established presence in IT Infrastructure and IT Managed Services, sizeable Government/PSU client base, strong ongoing project pipeline and expansion into Renewable Energy provide multiple avenues for growth. Accordingly, we recommend a ‘Subscribe – Long Term’ rating for the issue.”
Risks to Consider
Government/PSU clients and projects where the end users are Government/PSUs contributed 83.8% of FY26 revenue — so the business is highly dependent on public-sector tender activity, budget cycles, project awards and (often slow) government payment timelines.
EBITDA margin ~5.4% and PAT margin ~3.3% leave little buffer, and PAT in FY26 was still below FY24 — so profitability is choppy and sensitive to project mix and execution.
The government-IT-supply model is working-capital-heavy (a use of proceeds), finance costs jumped in FY26, and the business needs continued funding to service its large order book.
The renewable-energy EPC/PPA/BESS and Experience-Zone diversification is relatively new; solar EPC and BESS carry execution, technology and PPA-tariff risks, and the renewables-heavy order book must be delivered profitably.
Growth depends on continued Government/PSU tender wins in a competitive market; loss of key contracts or aggressive bidding could pressure both revenue and margins.
