- The IPO comprises solely a fresh issue with no offer-for-sale component
- The company has already surpassed bottomline and topline numbers of fiscal 2023 in the nine-month-period ended December FY24
NE BUSINESS BUREAU
AHMEDABAD, JUNE 24
Armee Infotech Ltd, an Ahmedabad-based IT infrastructure solutions provider, has filed preliminary papers with capital markets regulator Sebi to raise Rs 250 crore through an initial public offering (IPO). The Gujarat-based company’s initial share sale is completely a fresh issue of equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP) filed on Friday.
The issue proceeds (excluding IPO expenses) will be utilised mainly for its working capital requirements amounting to Rs 160 crore, and repaying debts worth Rs 10.63 crore. The remaining amount will be used for general corporate purposes.
The Company is sector agnostic and provides IT Infrastructure solution and IT managed service to a wide variety of projects for both Government/public sector undertakings (PSUs) and private sector with a focus on Government/PSU projects and a predominant presence in the state of Gujarat.
The range of projects undertaken by the company includes supply and installation of IT hardware and software, setting up of smart classes, installing digital infrastructure for public distribution systems, and digitalisation of primary agriculture credit societies, among others
Armee Infotech’s outstanding borrowings at the end of April this year stood at Rs 79.8 crore.
Armee Infotech, which provides IT managed services too, has already surpassed bottomline and topline numbers of fiscal 2023 in the nine-month-period ended December FY24. Profit stood at Rs 24.96 crore on revenue of Rs 560.2 crore for the said period.
Profit in the financial year 2023 grew 393 percent to Rs 16.6 crore compared to Rs 3.4 crore in previous year. Revenue from operations during the same period increased by 301.6 percent to Rs 502.7 crore.
Khandwala Securities, and Saffron Capital Advisors are the book running lead managers to the issue.
The IT industry plays a pivotal role in driving India’s overall economic growth. The industry contributed 7.5 per cent to India’s GDP in FY 2023, up from 7.4 per cent in FY 2022. The IT industry added an impressive 3.2 lakh new jobs in FY 2023, taking the total workforce to 5.72 million people, according to a D&B report.
