⚠️ Neutral
Listed
Computers - Software & Consulting
ArMee Infotech Limited IPO
₹300 Cr · Fresh Issue · Computers - Software & Consulting
Price Band
₹350 – ₹375
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹300 Cr
Fresh Issue
Market Cap
₹1189.93 Cr
At upper band
P/E Ratio
26.2x
P/S: 0.9x
Listing Date
30 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
23 Sep 2026
✓
Closes
25 Sep 2026
✓
Allotment
28 Sep 2026
✓
Refund
29 Sep 2026
✓
Listing
30 Sep 2026
IPO India Hub: Neutral
Conviction
5/10
The company trades at 0.92× sector midpoint—a fair valuation—but profitability is deteriorating with PAT declining 4.8% CAGR over two years despite 17.3% revenue growth. Margin compression (NPM 3.2%, EBITDA 5.42%) and weak subscription (2.62×) signal investor caution on execution risk.
Listing Performance
Issue Price
₹375
Allotment price
Listing Price
₹368.85
-1.64% on listing day
Current Price (CMP)
₹284.4
-24.2% vs issue
Listed On
30 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Valuation at sector midpoint
At 26.2× P/E (0.92× the IT/Software midpoint of 28.5×), the company is not overpriced relative to peers. The P/S ratio of 0.9× also sits below typical software consulting multiples, offering entry-level pricing for a profitable, revenue-generating business.
✓ Strength
Strong promoter commitment post-issue
Promoter holding remains at 69.35% post-issue, well above the 60% threshold, signaling confidence and alignment with minority shareholders. Zero OFS component means all capital raised goes to the business, not founder exits.
⚠ Risk
Profitability declining despite growth
Net profit fell from ₹50.1 Cr (FY-2) to ₹45.5 Cr (FY0), a -4.8% CAGR, while revenue grew 17.3%. This margin compression—NPM of only 3.2% and EBITDA margin 5.42%—suggests operational leverage is absent and cost control is weak.
⚠ Risk
Weak subscription and margin profile
Overall subscription of 2.62× is modest for an SME IPO, indicating lukewarm investor demand. With NPM at 3.2% (far below the 15% threshold for margin-justified premium valuations), the company has little pricing power or operational efficiency to justify growth multiples.
₹ Valuation
Fair valuation masked by margin risk
P/E of 26.2× at 0.92× sector midpoint appears reasonable, but this assumes stable or improving margins. Given the -4.8% PAT CAGR and 3.2% NPM, the market is pricing in no margin recovery; any further deterioration would make valuation expensive relative to earnings quality.
👁 Watch
Monitor quarterly margin trends post-listing
Investors must track gross margin, EBITDA margin, and PAT margin in Q1 and Q2 post-listing. If margins continue to compress or revenue growth slows below 15%, the valuation will become indefensible and stock downside risk will rise sharply.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "ArMee Infotech Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹1396.63 Cr
Net Profit
₹45.47 Cr
Industry
Computers - Software & Consulting
Issue Type
Fresh Issue
Promoters
AMI RIDHISH PATEL, KIRITKUMAR CHIMANBHAI PATEL AND RIDHISH KIRITBHAI PATEL
Lead Managers
Khandwala Securities and Saffron Capital Advisors
Quick Actions
Frequently Asked Questions
Neutral. The company trades at 0.92× sector midpoint—a fair valuation—but profitability is deteriorating with PAT declining 4.8% CAGR over two years despite 17.3% revenue growth. Margin compression (NPM 3.2%, EBITDA 5.42%) and weak subscription (2.62×) signal investor caution on execution risk.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹350 – ₹375.
The IPO opens on 23 Sep 2026. It closes on 25 Sep 2026. Allotment is expected on 28 Sep 2026. Refunds initiate on 29 Sep 2026. Listing on BSE and NSE is on 30 Sep 2026.
The lead managers for the IPO are Khandwala Securities and Saffron Capital Advisors. Check the SEBI filing for the registrar details.
The IPO listed on 30 Sep 2026 at ₹368.85 against an issue price of ₹375 (-1.64% on listing day). The current market price (CMP) is approximately ₹284.4 (-24.2% vs issue).
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 25 Sep 2026. The company trades at 0.92× sector midpoint—a fair valuation—but profitability is deteriorating with PAT declining 4.8% CAGR over two years despite 17.3% revenue growth. Margin compression (NPM 3.2%, EBITDA 5.42%) and weak subscription (2.62×) signal investor caution on execution risk.
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 25 Sep 2026. The IPO is priced at a P/E of 26.2x. Market cap at issue price is ₹1189.93 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 25 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'ArMee Infotech Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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