ArMee Infotech IPO: Why brokerages are divided on ₹300-crore public issue

ArMee Infotech IPO is a book build issue of ₹300 crores. The issue is entirely a fresh issue of 80 lakh shares

ArMee Infotech’s ₹300-crore IPO opened for bidding on Wednesday and has drawn a mixed view from brokerages. ArMee Infotech services both Government/public sector undertakings (PSUs) and private sector clients where the end users are Government / PSUs which operate across a wide variety of industries. A majority of the company’s revenues are currently derived from servicing Government/PSU projects. 

Brokerage view

Swastika The brokerage assigned a ‘Neutral’ rating to the stock, noting that the company’s top five customers contributed 76.66 per cent of FY26 revenue, increasing dependence on a limited client base. The valuation appears reasonable, but declining profitability, higher leverage and customer concentration remain key risks. Swastika added that the company’s heavy reliance on Gujarat projects limits geographic revenue diversification. Government client reliance poses significant revenue concentration risk. It also added that the company has limited experience in solar EPC and retail diversification. Future growth tied to uncertain tender wins and PBGs However, the brokerage also added that the company has proven success in Government and PSU project execution and has shown consistent financial performance over the years. It also noted that the company serves clients across multiple industry sectors and has an experienced board of directors and management team. Anand Rathi The brokerage firm had a ‘subscribe – long term’ rating to the company, noting that the company has demonstrated a sizeable scale of operations, with revenue from operations increasing from ₹10,206 million in FY24 to ₹13,133 million in FY25 and ₹13,966 million in FY26 It further added that the company has also maintained a strong presence in Government/PSU projects, with Government/PSU clients and projects wherein the end users are Government/PSU clients contributing 83.8% of revenue from operations in FY26. The company is also expanding its presence in the Renewable Energy Space, including EPC, PPA and BESS projects, which provides an additional avenue for diversification beyond its traditional IT Infrastructure and IT Managed Services business, the brokerage firm said. IPO Details ArMee Infotech IPO is a book-built issue of ₹300 crores. The issue is entirely a fresh issue of 80 lakh shares of ₹300 crore. The bidding for the ArMee Infotech IPO opened on September 23, 2026, and will close on September 25, 2026. The allotment is expected to be finalised on September 28, 2026. The IPO has a price band of ₹350 to ₹375 per share. The lot size for an application is 40 shares, meaning retail investors need to invest a minimum of ₹14,850 for one lot, based on the upper end of the price band. IPO bid details ArMee Infotech IPO was subscribed 0.07 times. The public issue was subscribed 0.10 times in the retail category, 0.00 times in QIB, and 0.03 times in the NII category by September 23, 2026, 10:54 AM. Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.