Ahmedabad-based ArMee Infotech launches its Rs 300 crore IPO today, September 23, 2026. The issue, priced at Rs 350-375 per share, closes on September 25. Investors are considering a mix of IT services and renewable energy EPC, though high government project reliance and recent cash flow challenges remain important factors to track.
Ahmedabad-based ArMee Infotech has opened its Rs 300 crore initial public offering (IPO) for subscription today, September 23, 2026. The company is offering shares in a price band of Rs 350 to Rs 375 each. The subscription window closes on September 25, 2026. Interested investors can place bids for a minimum lot of 40 shares, requiring a minimum investment of Rs 15,000 at the upper price band.
Business Model and Financials
The firm provides IT infrastructure and managed services, catering to both government and private clients. Over recent years, the company has expanded its operations into renewable energy engineering, procurement, and construction (EPC) projects, as well as battery energy storage systems and consumer electronics retail.
For the financial year 2026, ArMee Infotech reported revenue from operations of Rs 1,396.6 crore, compared to Rs 1,313.3 crore in the previous year. Profit after tax grew to Rs 45.5 crore, up from Rs 41.7 crore in fiscal year 2025. The company currently reports an order book of approximately Rs 2,663 crore, which includes 99 active projects. The proceeds from the IPO are planned for working capital requirements, debt repayment, and securing new government contracts.
Valuation and Operational Risks
At the upper end of the price band, the stock is valued at 26.2 times its fiscal year 2026 earnings, with an EV/EBITDA ratio of 17.83. A key area for investors is the company’s reliance on state-funded projects. This creates customer concentration risk, where the business depends heavily on government contracts. Furthermore, while the company has grown, it reported negative operating cash flows in the 2025 fiscal year. This indicates that the business needed more cash for its day-to-day operations than it generated from the work performed during that period, which can sometimes lead to higher debt if not managed effectively.
The success of the company’s expansion into renewable energy and the ability to convert the existing order book into profitable work are the main monitorables. Investors should also pay attention to how the company manages its working capital and whether it can improve cash generation, especially given its dependence on large government contracts that often involve longer payment cycles.