Armee Infotech Ltd IPO
Status: Closed
Overview
IPO date
23 Sept 2026 to 25 Sept 2026
Face value
₹ 10 per share
Price
₹ 350 to ₹375 per share
Issue Size
8,000,000 shares
(aggregating up to ₹ 300 Cr)
(aggregating up to ₹ 300 Cr)
Allotment Date
28 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
IT - Software
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T&C*
Strengths vs Risks of Armee Infotech Ltd
Know the pros & cons
Strengths
- Proven track record in executing projects for Government and PSU clients.
- Consistent track record of financial performance.
- Ability to service IT Infrastructure and IT managed services to clients engaged in diverse sectors.
- Experienced Board of Directors and management with extensive domain knowledge.
Risks
- Most of the company's business operations are concentrated in the states of Gujarat, Maharashtra and Tamil Nadu. As of March 31, 2026 more than 86% of the revenue was recognized from projects executed in the states of Gujarat, Maharashtra and Tamil Nadu. Due to this geographic concentration of the company's business operations, its results of operations and growth might be restricted to the economic and demographic conditions of these three states.
- The company depends on orders from the Government/PSU clients. As of March 31, 2026, more than 83.84% of the revenue was recognized from Government/PSU clients and wherein end users are Government / PSU clients. Additionally, the loss of or inability to qualify for such orders may adversely affect the company's business, financial condition, results of operations, and prospects.
- The company in-house procurement operations for renewable energy space projects expose it to certain risks. The company may incur unexpected expenses if the suppliers of components in its power projects default on their warranty obligations.
- The company is dependent on its Technology Partners for various hardware and software products which the company provide to its clients. As of March 31, 2026, 65.84% of the company's purchase from Technology Partners are from top three Technology Partners. The failures of its Technology Partners to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect the company's business and its ability to deliver orders on time.
- Most projects the company operates have been awarded primarily through a competitive bidding process and its financial performance is largely dependent on the company's successful bidding for new projects. Its may not always be able to qualify for, compete and win projects. If the company is not able to successfully bid for new projects, it may adversely affect the company's business operations and financial conditions. The success rate of the bids made by the company in Fiscals 2026, 2025, and 2024, were 19.48%, 24.57%, and 30.91%.
- The company has experienced negative cash flow from operating activities of Rs.(1,798.14) lakhs in Fiscal 2025 and any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operates its business and implement the company's growth plans, thereby affecting its financial condition.
- The company's business requires working capital. Any failures in arranging adequate working capital for its operations may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company derives a significant portion of its revenues from a limited number of clients. As of March 31, 2026, 76.66% of the revenue was recognized from the company's top five clients for the said period. The loss of any significant clients or delay, cancellation, termination and recission of any specific projects from any of such clients may have an adverse effect on the company's business, financial condition, results of operations, and prospects.
- Certain portion of the Company's revenue is now derived from, and is dependent upon, the renewable energy sector, particularly Renewable Energy EPC and Renewable Energy PPAs, which is a new line of business for the company, in which the expertise of its Promoters and senior management is minimal, and which is characterized by significant regulatory, financial, technological and execution complexities.
- The company is required to furnish PBGs as part of its business contracts and the company competitively bid for Government/PSU projects where such bank guarantees may be required. The company's inability to arrange such guarantees, the invocation of such guarantees, or its inability to win and service sufficient competitive bids, may adversely affect the company's business, cash flows, financial condition, results of operations and the deployment of the Net Proceeds against the object of ' Funds for the purpose of securing PBGs for expansion of business'.
- Multi locational projects subject the company to additional execution risks. If such risks materialize, it could have a material adverse effect on its business, financial condition and results of operations.
- The company IT Infrastructure, IT Managed Services and Experience Zones segments are highly dependent on the brand owners effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new electronic products at regular intervals. In case any of the company's brand partners is unable to do so, its sales would get impacted which would have an adverse impact on the operations and financial performance of the Company.
- The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.
- The company's projects with Government/PSU clients usually contain terms that are framed by them and its ability to negotiate terms of these projects is limited and the company may have to accept exacting provisions. Its inability to negotiate terms that are favorable to the company may have a material adverse impact on its financial condition and results of operations.
- The company strategic diversification into new lines of business, being Renewable Energy EPC and PPAs and retail sales through Experience Zones, may expose it to more challenges and new risks.
- The company relies on independent contractors and third party service providers for some part of its services and on third party suppliers for the company's products and any failures on their part to perform their obligations could adversely affect its reputation, business, results of operations and cash flows.
- Any downgrade in the company's credit ratings currently "Crisil BBB+/Stable" (long-term) and "Crisil A2" (short-term) from Crisil Ratings, "IVR BBB with a stable outlook" (long-term) and "IVR A3+" (short-term) from Infomerics, and "ACUITE B+" (long-term) and "ACUITE A4" (short-term) from Acuité Ratings & Research, could increase the company's borrowing costs, affect its ability to obtain financing, and adversely affect the company's business, results of operations and financial condition.
- The Company has availed a Rupee Term Loan facility of Rs.100.10 Crores from Indian Renewable Energy Development Agency Limited ("IREDA") which may be subject to conversion into Equity Shares of the Company upon the occurrence of a payment-related Event of Default.
- The company has delayed in payments of employee state insurance contributions, provident fund and other statutory dues in the past. Its may be subject to regulatory actions and penalties for any such past or future delays which in turn could have an adverse impact on the company's business, financial condition, results of operations and cash flows.
- The company had not spent certain allocated portions of its profits towards CSR, as required under the Companies Act, 2013. The unspent amounts were transferred to the CSR unspent account and have since been fully utilized in terms of the company's CSR policy. Failures to adhere to applicable regulation may subject it to penalties, and have an adverse effect on the company's reputation, financial condition, cash flows and results of operations.
- The company's Profit After Tax ("PAT") declined in Fiscal 2025 despite an increase in its revenue from operations, primarily on account of a shift in the company's revenue mix towards traded goods, which yield lower gross margins than IT Infrastructure projects. Any continuation or recurrence of such a revenue-mix shift could continue to compress its gross margins and adversely affect the company profitability, financial condition and results of operations.
- The company's Promoters have provided personal guarantees in respect of the secured and unsecured borrowings availed by the Company and its Subsidiary. As of March 31, 2026, 100% of the total secured borrowings of the Company is secured by personal guarantees and property of the Promoters. Any default in repaying such borrowings will trigger repayment obligation on its Promoters. In case Promoters fails to effectively satisfy their obligations to the lenders, it could lead to termination of the credit facilities availed by the company which could adversely impact its business and operations. Additionally, these obligations may impact the company's Promoters ability to provide guarantees on future borrowings, affecting its potential to avail credit facilities in future.
- The company's business is manpower intensive, and the success of its business depends on employees who are able to maintain quality and consistency in client service. The company's inability to attract or retain employees could adversely affect its business, financial condition and results of operations. If the company cannot attract and retain highly-skilled IT professionals, its ability to obtain, manage and staff new projects and to continue to expand existing projects may result in loss of revenue and an inability to expand the company's business.
- The company's renewable energy project construction activities and in-house operations are subject to risks including cost overruns, delays, and unforeseen expenses, which may adversely affect its business, results of operations, financial condition, and cash flows. Successful execution of contracted and awarded projects is essential to the company's business. Any failures to complete projects as planned could impact its financial performance.
- The portion of the issue proceeds proposed to be utilised towards Performance Bank Guarantees ("PBGs") is based on the company's internal estimates, and its PBG requirement as a percentage of revenue from operations declined in the past fiscals. Any variation in the company actual PBG requirements could result in underutilisation of the issue proceeds or requires it to arrange additional funding.
- Inability to successfully obtain or protect the company's intellectual property rights in future may adversely affect its business.
- Failures to obtain or renew approvals, licenses, registration and permits to operates the company's business and/or undertake a project in a timely manner may adversely affect its operations.
- The company engages contractual workers for carrying out certain functions in relation to few of its Ongoing Projects. In the event of non-availability of such contractual workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the independent contractors could lead to disruption of the company's business operations.
- The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond its control.
- An inability to effectively manage the company's growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- The company enters into certain related party transactions in the ordinary course of its business, and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.
- The company may seek to expand its service portfolio by tapping into niche categories of IT Infrastructure, IT managed services and Renewable Energy Space. If such services does not witness demand that the company expect them to, its business and results of operations may be adversely affected.
- The company Experience Zones are presently situated in Ahmedabad, Gujarat. However, the company plan to expand into new geographies and may be exposed to significant liability and could lose some or all of its investment in such regions, as a result of which the company's business, financial condition and results of operations could be adversely affected.
- Competition from online retailers who are able to offer products at competitive prices and are also able to offer wide range of products may adversely affect the company's business and its financial condition, results of operations and cash flows.
- The company's business revenues from the Experience Zones are currently dependent upon a single brand. The loss of any of its major brands or a decrease in the supply or volume from such brands, will materially and adversely affect the company's revenue and profitability.
- While the company has entered into long-term leasehold arrangements or have entered into rental agreements at certain locations, the company is yet to purchase real estate or entered into long-term leasehold arrangements or enters into rental agreements at certain locations suitable for new Experience Zones for its expansion in relation to setting up and operation of the company proposed new Experience Zones. In case the company is unable to open the Experience Zones in a timely manner, its may fall short of the revenue targets of the Company and this would have an adverse effect on its business, financial condition, results of operations and growth prospects.
- The company's inability to promptly identify and respond to changing customer preferences or evolving trends in IT Infrastructure and IT Managed Services segments may decrease the demand for its merchandise among the company's customers, which may adversely affect its business.
- The company may in the future faces potential liabilities from lawsuits or claims from third parties, should they perceive any deficiency in the products the company sell or the services its may provide. The company may also faces the risk of legal proceedings initiated against the Company which may result in loss of business and reputation.
- Any failures to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect the company's business and operating results.
- The Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on the company's business operations and profitability.
- There is a time gap between making significant upfront investments in the company renewable energy projects and receiving revenue which could have an adverse effect on its business, results of operations and financial condition.
- The company's inability to continue to implement its marketing and advertising initiatives and brand building exercises could adversely affect the company's business and financial condition.
- The company's purchase inventory basis the projects awarded to it, and if the company fails to manage its inventory effectively during that period, the company's business and results of operations could be adversely affected.
- The company does not have in-transit insurance for all the products that are delivered to its customers by the transport agent. The Company is liable for any damages that are caused to the products in such a process. Such losses can adversely affect its profitability and the Company's reputation.
- The company's ability to attract customers is dependent on the location of its Experience Zones and any adverse development impairing the success and viability of the company Experience Zones could adversely affect its business, financial condition and results of operations.
- The company's inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on its profitability and the company's reputation.
- The company may be subject to employee unrest, slowdowns and increased wage costs, which may have an adverse effect on its business, operations, the company's cash flow and financial condition.
- The company has to invest a substantial amount of resources to procure new projects which, if the company is unable to procure, could have an adverse effect on its business, financial condition and results of operations.
- The Company, Directors, Promoters, Subsidiary, Key Managerial Personnel and Senior Management Personnel are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- Non-compliance with, and changes in, safety, health, labour and other laws could adversely affect the company's business, results of operations and cash flows.
- As of March 31, 2026, the company had contingent liabilities which have not been provided for in its financial statements and could adversely affect the company's financial condition.
- The company's branch offices and warehouses are located on premises held by the company on a leasehold basis. Its cannot assure you that the lease deeds governing these premises will be renewed upon termination or that the company will be able to obtain other premises on same or similar commercial terms.
- The company's Registered and Corporate Office is located on leased premises to certain related parties to the Company and there can be no assurance that the lease agreement will be renewed upon termination or that its will be able to obtain other premises on lease on same or similar commercial terms. Any termination, non-renewal, upward revision of rent or dispute in respect of such related-party leases could disrupt the company operations and adversely affect its business, results of operations and financial condition.
- The company is dependent on its Promoters, the company's Senior Managerial Personnel, and Key Managerial Personnel, and the loss of its Senior Managerial Personnel or Key Managerial Personnel may adversely affect the company's growth and performance.
- The Company and its Subsidiary have availed unsecured loans that are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect the company's cash flows.
- The company relies on financing from banks or financial institutions to carry on its business operations, and inability to obtain additional financing on terms favorable to the company or at all could have an adverse impact on its financial condition. Further, certain of the company's financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition. If the company is unable to raise additional capital, its business and future financial performance could be adversely affected.
- Demand for the company's business is dependent on industry, Government spending and general economic conditions, there can be no assurance that future fluctuations in economic or business cycles, or other events that could influence GDP growth, will not have an adverse effect on the company's business and as a result its results of operations.
- The company's insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect the company from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- The company's Promoter-Directors are interested in its performance in addition to their remuneration and reimbursement of expenses.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by Dun & Bradstreet Information Services India Private Limited exclusively commissioned and paid for by the company for such purpose.
- The average cost of acquisition of Equity Shares by the Promoters may be less than the Issue Price.
- The company's Promoters and Promoter Group will continue to exercise significant influence over the company after completion of the Issue.
- The Company may not be able to pay dividends in the future. The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- None of the Promoters of the Company has experience of being a promoter of a public listed company.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian information technology distribution industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- The company supplies and maintains IT hardware and consumer electronics. Non-compliance with E-Waste Management Rules, 2022 or improper disposal practices may attract penalties, tender disqualification, and reputational harm.
- The company's Experience Zones expose it to obligations under consumer protection laws, including warranty claims, refunds, and product liability. Failures to comply with BIS certification norms or address consumer grievances could adversely affect its brand and financial performance.
- The company's Renewable Energy PPA revenues depends on timely payments from DISCOMs and other off-takers. Delays, curtailment, or insolvency of counterparties could materially impact cash flows and project IRRs.
- Installation, warehousing, and site operations involve physical risks. Inadequate safety measures or contractor noncompliance could lead to accidents, regulatory penalties, and reputational harm.
- The company's working capital and PBG requirements are sensitive to interest rate fluctuations. Rising rates may increase borrowing costs and margin requirements, reducing competitiveness in bids and impacting profitability.
- Renewable Energy projects may faces delays due to land acquisition challenges, local opposition, or environmental clearance requirements. These factors could increase costs and affect project timelines.
- Changes in renewable energy regulations, such as time-of-day tariffs, scheduling penalties, or open access norms, may adversely impact project economics and revenue predictability.
- Recent global economic conditions have been challenging and continue to affect the Indian market, which may adversely affect the company's business, financial condition, results of operations and prospects.
- Natural or man-made disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, civil unrest and other events could materially and adversely affect the company's business.
- Any downgrading of India's sovereign debt rating by an international rating agency could have a negative impact on the company's business and results of operations.
- Changing laws, rules or regulations and legal uncertainties including taxation laws, or their interpretation, such changes may significantly affect the company's financial statements.
- Financial instability in other countries may cause increased volatility in Indian financial markets.
- If inflation were to rise in India, the company might not be able to increase the prices of its services at a proportional rate thereby reducing the company's margins.
- The company may be affected by competition laws, the adverse application or interpretation of which could adversely affect its business.
- The trading volume and market price of the Equity Shares may be volatile following the Issue.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
- Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
- The company's Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for its Equity Shares.
- There is no guarantee that the company's Equity Shares will be listed on the BSE and NSE in a timely manner or at all. Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity linked instruments by the company may dilute your shareholding and sale of Equity Shares by shareholders with significant shareholding may adversely affect the trading price of the Equity Shares.
- Under Indian law, foreign investors are subject to investment restrictions that limit the company's ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares.
- Significant differences exist between Ind AS and other accounting principles, which investors may be more familiar with and may consider material to their assessment of the company's financial condition.
- The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue. Further, the current market price of some securities listed pursuant to certain previous issues managed by the BRLMs is below their respective issue prices.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after Bid/Issue Closing Date.
- Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.
- The requirements of being a publicly listed company may strain its resources.
- A third-party could be prevented from acquiring control of the company post this Issue, because of anti-takeover provisions under Indian law.
- Rights of shareholders of companies under Indian law may be more limited than under the laws of other jurisdictions.
Armee Infotech Ltd Peer Comparison
Understand the company’s industry standing
ArMee Infotech Limited
Dynacons Systems & Solutions Limited
Orient Technologies Limited
Face Value
10
10
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1396.63
1424.28
869.54
EPS-Basis
19.16
66.64
1
EPS-Diluted
19.16
66.64
1
NAV Per Share
76.77
247.54
73.44
P/E-Basic EPS
19.57
16.41
243.15
P/E-Diluted EPS
---
---
---
RONW(%)
24.96
26.9
1.36
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 23 Sept 2026 & closes on 25 Sept 2026.
Armee Infotech Limited was originally incorporated as 'Blossom Infraspace Private Limited' a Private Limited Company dated February 8, 2011 issued by the Registrar of Companies, Gujarat at Dadra and Nagar Haveli. Thereafter, the name of Company was changed to 'ArMee Infotech Private Limited' and a fresh Certificate of Incorporation upon change of name was issued by the RoC on April 21, 2017. Upon conversion of Company into a Public Limited, the name of Company has changed to 'ArMee Infotech Limited' and a fresh Certificate of Incorporation has been issued to the Company by the RoC on April 24, 2024.
Having commenced its business in 2011, the Company is an IT Infrastructure solutions and IT managed services company headquartered in Ahmedabad, Gujarat. As an IT Infrastructure solutions and IT managed services company, they are sector agnostic and service a wide variety of projects for both government/public sector undertakings (PSUs) and private sector with a focus on Government/PSU projects.
Under IT Infrastructure solutions, Company provide supply and installation of IT hardware and software (e.g., computers, servers, interactive panels and their peripherals) and provide maintenance of the IT Infrastructure installed for periods under relevant contracts. It provide functional training into IT Infrastructure installed by them.
The Company acquired the business of M/s Armee Infotech, the Partnership Firm in 2017 and has undertaken multiple projects including supply and installation of IT hardware and software (eg. computers, servers), setting up of ICT labs, smart classes, installing digital infrastructure for public distribution system, mobile workforce management, and digitalization of primary agriculture credit societies etc. Under IT managed services category, the Company also provide technical manpower, skill development training and offer annual maintenance services.
The Company has come up with an IPO and is planning to raise money from public through Equity Shares aggregating to Rs 250 Cr. through Fresh Issue.
Armee Infotech Ltd IPO will close on 25 Sept 2026.
- Proven track record in executing projects for Government and PSU clients.
- Consistent track record of financial performance.
- Ability to service IT Infrastructure and IT managed services to clients engaged in diverse sectors.
- Experienced Board of Directors and management with extensive domain knowledge.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Ami Ridhish Patel | 18081180 | 76.19 | 18081180 | 56.98 |
| 2 | Kritikumar Chimanbhai Patel | 2521542 | 10.62 | 2521542 | 7.95 |
| 3 | Ridhish Kirtibhai Patel | 1401492 | 5.91 | 1401492 | 4.42 |
- Most of the company's business operations are concentrated in the states of Gujarat, Maharashtra and Tamil Nadu. As of March 31, 2026 more than 86% of the revenue was recognized from projects executed in the states of Gujarat, Maharashtra and Tamil Nadu. Due to this geographic concentration of the company's business operations, its results of operations and growth might be restricted to the economic and demographic conditions of these three states.
- The company depends on orders from the Government/PSU clients. As of March 31, 2026, more than 83.84% of the revenue was recognized from Government/PSU clients and wherein end users are Government / PSU clients. Additionally, the loss of or inability to qualify for such orders may adversely affect the company's business, financial condition, results of operations, and prospects.
- The company in-house procurement operations for renewable energy space projects expose it to certain risks. The company may incur unexpected expenses if the suppliers of components in its power projects default on their warranty obligations.
- The company is dependent on its Technology Partners for various hardware and software products which the company provide to its clients. As of March 31, 2026, 65.84% of the company's purchase from Technology Partners are from top three Technology Partners. The failures of its Technology Partners to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect the company's business and its ability to deliver orders on time.
- Most projects the company operates have been awarded primarily through a competitive bidding process and its financial performance is largely dependent on the company's successful bidding for new projects. Its may not always be able to qualify for, compete and win projects. If the company is not able to successfully bid for new projects, it may adversely affect the company's business operations and financial conditions. The success rate of the bids made by the company in Fiscals 2026, 2025, and 2024, were 19.48%, 24.57%, and 30.91%.
- The company has experienced negative cash flow from operating activities of Rs.(1,798.14) lakhs in Fiscal 2025 and any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operates its business and implement the company's growth plans, thereby affecting its financial condition.
- The company's business requires working capital. Any failures in arranging adequate working capital for its operations may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company derives a significant portion of its revenues from a limited number of clients. As of March 31, 2026, 76.66% of the revenue was recognized from the company's top five clients for the said period. The loss of any significant clients or delay, cancellation, termination and recission of any specific projects from any of such clients may have an adverse effect on the company's business, financial condition, results of operations, and prospects.
- Certain portion of the Company's revenue is now derived from, and is dependent upon, the renewable energy sector, particularly Renewable Energy EPC and Renewable Energy PPAs, which is a new line of business for the company, in which the expertise of its Promoters and senior management is minimal, and which is characterized by significant regulatory, financial, technological and execution complexities.
- The company is required to furnish PBGs as part of its business contracts and the company competitively bid for Government/PSU projects where such bank guarantees may be required. The company's inability to arrange such guarantees, the invocation of such guarantees, or its inability to win and service sufficient competitive bids, may adversely affect the company's business, cash flows, financial condition, results of operations and the deployment of the Net Proceeds against the object of ' Funds for the purpose of securing PBGs for expansion of business'.
- Multi locational projects subject the company to additional execution risks. If such risks materialize, it could have a material adverse effect on its business, financial condition and results of operations.
- The company IT Infrastructure, IT Managed Services and Experience Zones segments are highly dependent on the brand owners effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new electronic products at regular intervals. In case any of the company's brand partners is unable to do so, its sales would get impacted which would have an adverse impact on the operations and financial performance of the Company.
- The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.
- The company's projects with Government/PSU clients usually contain terms that are framed by them and its ability to negotiate terms of these projects is limited and the company may have to accept exacting provisions. Its inability to negotiate terms that are favorable to the company may have a material adverse impact on its financial condition and results of operations.
- The company strategic diversification into new lines of business, being Renewable Energy EPC and PPAs and retail sales through Experience Zones, may expose it to more challenges and new risks.
- The company relies on independent contractors and third party service providers for some part of its services and on third party suppliers for the company's products and any failures on their part to perform their obligations could adversely affect its reputation, business, results of operations and cash flows.
- Any downgrade in the company's credit ratings currently "Crisil BBB+/Stable" (long-term) and "Crisil A2" (short-term) from Crisil Ratings, "IVR BBB with a stable outlook" (long-term) and "IVR A3+" (short-term) from Infomerics, and "ACUITE B+" (long-term) and "ACUITE A4" (short-term) from Acuité Ratings & Research, could increase the company's borrowing costs, affect its ability to obtain financing, and adversely affect the company's business, results of operations and financial condition.
- The Company has availed a Rupee Term Loan facility of Rs.100.10 Crores from Indian Renewable Energy Development Agency Limited ("IREDA") which may be subject to conversion into Equity Shares of the Company upon the occurrence of a payment-related Event of Default.
- The company has delayed in payments of employee state insurance contributions, provident fund and other statutory dues in the past. Its may be subject to regulatory actions and penalties for any such past or future delays which in turn could have an adverse impact on the company's business, financial condition, results of operations and cash flows.
- The company had not spent certain allocated portions of its profits towards CSR, as required under the Companies Act, 2013. The unspent amounts were transferred to the CSR unspent account and have since been fully utilized in terms of the company's CSR policy. Failures to adhere to applicable regulation may subject it to penalties, and have an adverse effect on the company's reputation, financial condition, cash flows and results of operations.
- The company's Profit After Tax ("PAT") declined in Fiscal 2025 despite an increase in its revenue from operations, primarily on account of a shift in the company's revenue mix towards traded goods, which yield lower gross margins than IT Infrastructure projects. Any continuation or recurrence of such a revenue-mix shift could continue to compress its gross margins and adversely affect the company profitability, financial condition and results of operations.
- The company's Promoters have provided personal guarantees in respect of the secured and unsecured borrowings availed by the Company and its Subsidiary. As of March 31, 2026, 100% of the total secured borrowings of the Company is secured by personal guarantees and property of the Promoters. Any default in repaying such borrowings will trigger repayment obligation on its Promoters. In case Promoters fails to effectively satisfy their obligations to the lenders, it could lead to termination of the credit facilities availed by the company which could adversely impact its business and operations. Additionally, these obligations may impact the company's Promoters ability to provide guarantees on future borrowings, affecting its potential to avail credit facilities in future.
- The company's business is manpower intensive, and the success of its business depends on employees who are able to maintain quality and consistency in client service. The company's inability to attract or retain employees could adversely affect its business, financial condition and results of operations. If the company cannot attract and retain highly-skilled IT professionals, its ability to obtain, manage and staff new projects and to continue to expand existing projects may result in loss of revenue and an inability to expand the company's business.
- The company's renewable energy project construction activities and in-house operations are subject to risks including cost overruns, delays, and unforeseen expenses, which may adversely affect its business, results of operations, financial condition, and cash flows. Successful execution of contracted and awarded projects is essential to the company's business. Any failures to complete projects as planned could impact its financial performance.
- The portion of the issue proceeds proposed to be utilised towards Performance Bank Guarantees ("PBGs") is based on the company's internal estimates, and its PBG requirement as a percentage of revenue from operations declined in the past fiscals. Any variation in the company actual PBG requirements could result in underutilisation of the issue proceeds or requires it to arrange additional funding.
- Inability to successfully obtain or protect the company's intellectual property rights in future may adversely affect its business.
- Failures to obtain or renew approvals, licenses, registration and permits to operates the company's business and/or undertake a project in a timely manner may adversely affect its operations.
- The company engages contractual workers for carrying out certain functions in relation to few of its Ongoing Projects. In the event of non-availability of such contractual workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the independent contractors could lead to disruption of the company's business operations.
- The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond its control.
- An inability to effectively manage the company's growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- The company enters into certain related party transactions in the ordinary course of its business, and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.
- The company may seek to expand its service portfolio by tapping into niche categories of IT Infrastructure, IT managed services and Renewable Energy Space. If such services does not witness demand that the company expect them to, its business and results of operations may be adversely affected.
- The company Experience Zones are presently situated in Ahmedabad, Gujarat. However, the company plan to expand into new geographies and may be exposed to significant liability and could lose some or all of its investment in such regions, as a result of which the company's business, financial condition and results of operations could be adversely affected.
- Competition from online retailers who are able to offer products at competitive prices and are also able to offer wide range of products may adversely affect the company's business and its financial condition, results of operations and cash flows.
- The company's business revenues from the Experience Zones are currently dependent upon a single brand. The loss of any of its major brands or a decrease in the supply or volume from such brands, will materially and adversely affect the company's revenue and profitability.
- While the company has entered into long-term leasehold arrangements or have entered into rental agreements at certain locations, the company is yet to purchase real estate or entered into long-term leasehold arrangements or enters into rental agreements at certain locations suitable for new Experience Zones for its expansion in relation to setting up and operation of the company proposed new Experience Zones. In case the company is unable to open the Experience Zones in a timely manner, its may fall short of the revenue targets of the Company and this would have an adverse effect on its business, financial condition, results of operations and growth prospects.
- The company's inability to promptly identify and respond to changing customer preferences or evolving trends in IT Infrastructure and IT Managed Services segments may decrease the demand for its merchandise among the company's customers, which may adversely affect its business.
- The company may in the future faces potential liabilities from lawsuits or claims from third parties, should they perceive any deficiency in the products the company sell or the services its may provide. The company may also faces the risk of legal proceedings initiated against the Company which may result in loss of business and reputation.
- Any failures to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect the company's business and operating results.
- The Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on the company's business operations and profitability.
- There is a time gap between making significant upfront investments in the company renewable energy projects and receiving revenue which could have an adverse effect on its business, results of operations and financial condition.
- The company's inability to continue to implement its marketing and advertising initiatives and brand building exercises could adversely affect the company's business and financial condition.
- The company's purchase inventory basis the projects awarded to it, and if the company fails to manage its inventory effectively during that period, the company's business and results of operations could be adversely affected.
- The company does not have in-transit insurance for all the products that are delivered to its customers by the transport agent. The Company is liable for any damages that are caused to the products in such a process. Such losses can adversely affect its profitability and the Company's reputation.
- The company's ability to attract customers is dependent on the location of its Experience Zones and any adverse development impairing the success and viability of the company Experience Zones could adversely affect its business, financial condition and results of operations.
- The company's inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on its profitability and the company's reputation.
- The company may be subject to employee unrest, slowdowns and increased wage costs, which may have an adverse effect on its business, operations, the company's cash flow and financial condition.
- The company has to invest a substantial amount of resources to procure new projects which, if the company is unable to procure, could have an adverse effect on its business, financial condition and results of operations.
- The Company, Directors, Promoters, Subsidiary, Key Managerial Personnel and Senior Management Personnel are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- Non-compliance with, and changes in, safety, health, labour and other laws could adversely affect the company's business, results of operations and cash flows.
- As of March 31, 2026, the company had contingent liabilities which have not been provided for in its financial statements and could adversely affect the company's financial condition.
- The company's branch offices and warehouses are located on premises held by the company on a leasehold basis. Its cannot assure you that the lease deeds governing these premises will be renewed upon termination or that the company will be able to obtain other premises on same or similar commercial terms.
- The company's Registered and Corporate Office is located on leased premises to certain related parties to the Company and there can be no assurance that the lease agreement will be renewed upon termination or that its will be able to obtain other premises on lease on same or similar commercial terms. Any termination, non-renewal, upward revision of rent or dispute in respect of such related-party leases could disrupt the company operations and adversely affect its business, results of operations and financial condition.
- The company is dependent on its Promoters, the company's Senior Managerial Personnel, and Key Managerial Personnel, and the loss of its Senior Managerial Personnel or Key Managerial Personnel may adversely affect the company's growth and performance.
- The Company and its Subsidiary have availed unsecured loans that are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect the company's cash flows.
- The company relies on financing from banks or financial institutions to carry on its business operations, and inability to obtain additional financing on terms favorable to the company or at all could have an adverse impact on its financial condition. Further, certain of the company's financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition. If the company is unable to raise additional capital, its business and future financial performance could be adversely affected.
- Demand for the company's business is dependent on industry, Government spending and general economic conditions, there can be no assurance that future fluctuations in economic or business cycles, or other events that could influence GDP growth, will not have an adverse effect on the company's business and as a result its results of operations.
- The company's insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect the company from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- The company's Promoter-Directors are interested in its performance in addition to their remuneration and reimbursement of expenses.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by Dun & Bradstreet Information Services India Private Limited exclusively commissioned and paid for by the company for such purpose.
- The average cost of acquisition of Equity Shares by the Promoters may be less than the Issue Price.
- The company's Promoters and Promoter Group will continue to exercise significant influence over the company after completion of the Issue.
- The Company may not be able to pay dividends in the future. The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- None of the Promoters of the Company has experience of being a promoter of a public listed company.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian information technology distribution industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- The company supplies and maintains IT hardware and consumer electronics. Non-compliance with E-Waste Management Rules, 2022 or improper disposal practices may attract penalties, tender disqualification, and reputational harm.
- The company's Experience Zones expose it to obligations under consumer protection laws, including warranty claims, refunds, and product liability. Failures to comply with BIS certification norms or address consumer grievances could adversely affect its brand and financial performance.
- The company's Renewable Energy PPA revenues depends on timely payments from DISCOMs and other off-takers. Delays, curtailment, or insolvency of counterparties could materially impact cash flows and project IRRs.
- Installation, warehousing, and site operations involve physical risks. Inadequate safety measures or contractor noncompliance could lead to accidents, regulatory penalties, and reputational harm.
- The company's working capital and PBG requirements are sensitive to interest rate fluctuations. Rising rates may increase borrowing costs and margin requirements, reducing competitiveness in bids and impacting profitability.
- Renewable Energy projects may faces delays due to land acquisition challenges, local opposition, or environmental clearance requirements. These factors could increase costs and affect project timelines.
- Changes in renewable energy regulations, such as time-of-day tariffs, scheduling penalties, or open access norms, may adversely impact project economics and revenue predictability.
- Recent global economic conditions have been challenging and continue to affect the Indian market, which may adversely affect the company's business, financial condition, results of operations and prospects.
- Natural or man-made disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, civil unrest and other events could materially and adversely affect the company's business.
- Any downgrading of India's sovereign debt rating by an international rating agency could have a negative impact on the company's business and results of operations.
- Changing laws, rules or regulations and legal uncertainties including taxation laws, or their interpretation, such changes may significantly affect the company's financial statements.
- Financial instability in other countries may cause increased volatility in Indian financial markets.
- If inflation were to rise in India, the company might not be able to increase the prices of its services at a proportional rate thereby reducing the company's margins.
- The company may be affected by competition laws, the adverse application or interpretation of which could adversely affect its business.
- The trading volume and market price of the Equity Shares may be volatile following the Issue.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
- Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
- The company's Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for its Equity Shares.
- There is no guarantee that the company's Equity Shares will be listed on the BSE and NSE in a timely manner or at all. Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity linked instruments by the company may dilute your shareholding and sale of Equity Shares by shareholders with significant shareholding may adversely affect the trading price of the Equity Shares.
- Under Indian law, foreign investors are subject to investment restrictions that limit the company's ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares.
- Significant differences exist between Ind AS and other accounting principles, which investors may be more familiar with and may consider material to their assessment of the company's financial condition.
- The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue. Further, the current market price of some securities listed pursuant to certain previous issues managed by the BRLMs is below their respective issue prices.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after Bid/Issue Closing Date.
- Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.
- The requirements of being a publicly listed company may strain its resources.
- A third-party could be prevented from acquiring control of the company post this Issue, because of anti-takeover provisions under Indian law.
- Rights of shareholders of companies under Indian law may be more limited than under the laws of other jurisdictions.
The Issue type of Armee Infotech Ltd is Book Building.
The minimum application for shares of Armee Infotech Ltd is 40.
The total shares issue of Armee Infotech Ltd is 8000000.
Initial public offering of 80,00,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Armee Infotech Limited ("the Company" or the "Issuer") for cash at a price of Rs. 375 per equity share ("Issue Price") (Including A Premium of Rs. 365 Per Equity Share) aggregating to Rs. 300.00 Crores (the "Issue"). The issue comprises of a fresh issue of 80,00,000 equity shares by the company aggregating to Rs. 300.00 Crores. The Issue and the net issue constitute 25.21% and 25.21% of the post-issue paid-up equity share capital of the company, respectively.
Price Band: Rs. 375 per equity share of face value of Rs. 10 each.
The floor price is 37.50 times of the face value of the equity shares.
Bids can made for a minimum quantity of 40 equity shares of face value of Rs. 10 each and in multiples of 40 equity shares of face value of Rs. 10 each thereafter.