Armee Infotech files draft papers to raise Rs 250 crore through IPO

IT infrastructure solutions provider Armee Infotech Ltd 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.

Proceeds of the issue will be used to increase the working capital requirements of the company, payment of debt and general corporate purposes.

Armee Infotech services a wide variety of projects for both government/public sector undertakings (PSUs) and private sector with a focus on government/PSU projects.

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.

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.

Khandwala Securities and Saffron Capital Advisors are the book-running lead managers to the public issue.