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ArMee Infotech coming with IPO to raise up to Rs 321 crore
Sep-21-2026

ArMee Infotech

  • ArMee Infotech is coming out with a 100% book building; initial public offering (IPO) of 85,71,428 shares of face value Rs 10 each in a price band Rs 350-375 per equity share.
  • Not more than 25% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 22.50% of the issue will be available for the non-institutional bidders and the remaining 52.50% for the retail investors.
  • The issue will open for subscription on September 23, 2026 and will close on September 25, 2026.
  • The shares will be listed on both BSE and NSE.
  • The face value of the share is Rs 10 and is priced 35.00 times of its face value on the lower side and 37.50 on the higher side.
  • Book running lead managers to the issue are Khandwala Securities and Saffron Capital Advisors.
  • Compliance officer for the issue is Purnima Jain. 

Profile of the company

ArMee Infotech is an IT infrastructure and IT managed services Company, which has ventured into the retail sales space through Experience Zones engaged in the sale of IT, consumer electronics, and gaming and merchandise products, and engaged in the Renewable Energy Space, including engineering, procurement and construction (EPC) of solar power projects and development of solar power projects under power purchase agreements (PPAs) and Battery Energy Storage System (BESS). The company is headquartered in Ahmedabad, Gujarat. It services both Government/public sector undertakings (PSUs) and private sector clients including wherein the end users are Government / PSUs which operate across a wide variety of industries. A majority of its revenues are currently derived from servicing Government/PSU projects.

Under the IT Infrastructure category, the company provides IT hardware and software (e.g., computers, servers, interactive panels and their peripherals), work on the installation and integration of the hardware and software as per client requirements, and also provide maintenance of the IT Infrastructure installed by it for periods as may be specified under the relevant contracts. To ensure seamless transition for its clients, the company also provides functional training of the IT Infrastructure installed by it. The company has undertaken multiple projects under the IT Infrastructure segment including setting up of ICT labs, smart classes, installing digital infrastructure for the public distribution system under the National Food Security Act, 2013, and supplying and/or installing IT hardware to various Government entities. The projects undertaken by the company are for specific contractual periods.

Further, the company undertakes EPC and PPA projects in the Renewable Energy Space. India's solar power sector has demonstrated robust growth, marked by a significant increase in installed capacity over the past six fiscal years. Beginning at 35.6 GW in FY 2020, the country's solar power capacity surged to 150.3 GW by FY 2026, reflecting a notable compound annual growth rate (CAGR) of 27.1%. As of July 2026, India has achieved a cumulative installed solar power capacity of 164.59 GW. The company also engages as a developer in projects for Renewable Energy BESS on a PPA basis.

Proceed is being used for: 

  • Funds for the purpose of securing PBGs for expansion of business
  • Funding its working capital requirements
  • Prepayment or repayment of certain outstanding borrowings availed by the company
  • General corporate purposes

Industry overview

The IT industry plays a pivotal role in driving India’s overall economic growth. The industry contributed 7% to India’s national GDP in FY 2026, In FY2026, direct employment in India’s technology sector is projected to reach approximately 6 million, up 2.3% from FY2025, following the net addition of 135,000 employees. IT infrastructure services provide the foundation for India's digital transformation by building and managing data centers, networks, and cloud platforms. This ensures ubiquitous internet access, critical for connecting citizens, businesses, and government entities. Reliable and secure IT infrastructure facilitates the adoption of digital technologies like cloud computing, AI, and IoT across sectors like healthcare, education, banking, and agriculture. This translates to improved efficiency, transparency, and innovation within these sectors. Government initiatives like Digital India rely heavily on robust IT infrastructure for delivering citizen-centric services like e-KYC, e-payments, and online education platforms.

The Indian IT-BPM (Information Technology- Business Process Management) industry revenue is estimated to grow from $315.0 billion in FY 2026E and $378 billion by FY 2030. This positive trend reflects the sector's continued expansion, driven by digital transformation, rising global outsourcing demand, and increasing investments in cloud, AI, and cybersecurity technologies. The CAGR (Compound Annual Growth Rate) is marked at 4.7%, indicating a consistent pace of industry development. Contributing factors include the rise of Software as a Service (SaaS), global capability centres (GCCs), and government policies supporting digital public infrastructure and innovation. This consistent upward trajectory underlines the IT-BPM industry's critical role in India’s economic growth and its strategic importance in the global digital economy. Compared to developed economies, India offers competitive rates for IT services, making it an attractive option for businesses worldwide. This advantage, coupled with a large pool of skilled professionals, continues to attract global clients. The rise of technologies like artificial intelligence, blockchain, and the Internet of Things (IoT) is creating new opportunities for the Indian IT industry. Companies are investing in developing expertise in these areas to meet evolving client needs.

Meanwhile, India has rapidly ascended as a global leader in solar power generation, ranking 3rd globally in solar power capacity and 3rd in renewable energy installations, including large hydro. As of July 2026, India has achieved a cumulative installed solar power capacity of 164.59 GW. This includes 122.57 GW from ground-mounted solar plants, 30.74 GW from grid connected solar rooftop systems, 4.77 GW from the solar component of hybrid projects, and 6.51 GW from off-grid solar installations.2F11 These figures highlight the diverse contributions of various solar technologies toward the country's renewable energy goals, showcasing steady progress in expanding solar capacity across different segments. India's solar power sector has seen significant growth and development, reflecting the country's commitment to renewable energy. As of 2026, India aims to achieve a solar power capacity of 280 GW by 2030, with current installations reaching 150.3 GW. Rajasthan leads with 42.17 GW, driven by projects like the Bhadla Solar.

Pros and strengths 

Proven track record in government and PSU projects: The company has a proven track record in executing projects for Government / PSU clients. The company obtains most of its business by a competitive bidding process and undertake multilocational projects providing IT Infrastructure and IT managed services to various departments of different state Governments and PSUs. Further, the company has been part of successful implementation of Government schemes such as E-gram Vishwagram project by the Government of Gujarat, Deen Dayal Upadhyaya Grameen Kaushalya Yojana by the Central Government, Gyankunj scheme- a digitization program of Government of Gujarat, Samagra Shiksha Abhiyan by the Central Government amongst others. Under Renewable Energy Space as well, it obtains most of the business by competitive bidding process for various Government / PSU clients.

Diversified sectoral presence and service capabilities: Apart from being an IT Infrastructure and IT managed services company, it has also ventured into Renewable Energy EPC, Renewable Energy PPA and Renewable Energy BESS project and Experience Zones. It is sector agnostic and have serviced a wide variety of projects for both Government/PSUs and private sector clients including wherein the end users are Government / PSUs. One of its strengths lies in being able to provide IT Infrastructure and IT managed services to clients engaged in diverse sectors. It has provided IT Infrastructure and IT managed services to various sectors including education, healthcare, public distribution system, rural & urban development, science & technology sectors etc. It is therefore able to quickly adapt to the requirements of different sectors.

Robust balance sheet and sustained profitability: The company has a strong balance sheet and has successfully demonstrated consistent growth in terms of revenues and profitability. It has experienced sustained growth in various financial indicators. It strives to maintain a robust financial position with emphasis on having a strong balance sheet and increased profitability.

Experienced management team with extensive industry expertise: The company’s operations are conducted by an experienced management team that has significant expertise in all aspects of its business operations. The company’s Promoters, Kiritkumar Chimanbhai Patel and Ami Ridhish Patel have been associated with the Company since its inception and have an experience of over two decades and its Promoter, Ridhish Kiritbhai Patel joined the operations of the company as an Executive Director on May 22, 2012 and has an experience of more than a decade. In addition to their expertise, its senior management team includes personnel with prior experience in business development and working with industry bodies. The team oversees the implementation of renewable energy projects through the company and its subsidiaries.

Risks and concerns

Geographic concentration may restrict business growth: 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 its business operations, its results of operations and growth might be restricted to the economic and demographic conditions of these three states.

High dependence on government and PSU orders: 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 its business, financial condition, results of operations, and prospects.

Reliance on a limited number of technology partners: The company is dependent on its Technology Partners for various hardware and software products which it provides to its clients. As of March 31, 2026, 65.84% of its purchase from Technology Partners are from top three Technology Partners. The failure 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 its business and its ability to deliver orders on time.

Reliance on competitive bidding for project wins: Most projects the company operates have been awarded primarily through a competitive bidding process and its financial performance is largely dependent on its successful bidding for new projects. It may not always be able to qualify for, compete and win projects. If it is not able to successfully bid for new projects, it may adversely affect its 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%.

Outlook

ArMee Infotech is an IT infrastructure solutions and managed services company. As part of the ArMee Group, the company provides end-to-end technology solutions 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 business beyond its core IT services. The company has proven track record in executing projects for Government / PSU clients. On the concern side, majority of the company’s revenue from operations for the respective periods came from the projects executed by it in the states of Gujarat, Maharashtra and Tamil Nadu. The concentration of its operations in these three states exposes its business and growth prospects to changes in their economic and demographic conditions. Moreover, the company’s business requires working capital. Any failure in arranging adequate working capital for its operations may adversely affect its business, results of operations, cash flows and financial condition.

The issue has been offering 85,71,428 shares in a price band of Rs 350-375 per equity share. The aggregate size of the offer is around Rs 300.00 crore to Rs 321.43 crore based on lower and upper price band respectively. Minimum application is to be made for 40 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased 6.34% from Rs 1,31,331.37 lakh in Fiscal 2025 to Rs 1,39,662.61 lakh in Fiscal 2026. Moreover, the company’s profit after tax increased 9.12% from Rs 4,166.64 lakh in Fiscal 2025 to Rs 4,546.65 lakhs in Fiscal 2026.

Meanwhile, the company offers a wide ranging and diversified bouquet of product and service offerings and classify its IT business into two verticals viz., IT Infrastructure and IT managed services. It also intends to leverage upon the upcoming technological advancements in segments such as Experience Zone, payment devices and data migration. Further, it also engages in Renewable Energy Space. The company is headquartered in Gujarat and has branch offices in two states, being, Haryana, and Maharashtra. The company has a significant presence in the states of Gujarat and Maharashtra. As of June 30, 2026, out of its 99 Ongoing Projects, 74 projects are based in the state of Gujarat, 11 in Maharashtra, 2 each in Bihar, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh and Rajasthan and 1 each is based in Telangana, Tamil Nadu, Uttarakhand, and New Delhi. It intends to increase its presence PAN India by securing and servicing projects in other states of India. It routinely bid for various projects in multiple states.
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