Armour Security India’s IPO is now open for subscription, and early market signals show a modest 7% grey‑market premium over the top of the price range.
What the IPO Looks Like
The issue is for Rs 26.51 crore, entirely a fresh issue. It will be listed on January 22 after the subscription window closes on January 19.
- Price band: Rs 55–Rs 57 per share (face value Rs 10).
- Shares offered: 46.5 lakh equity shares.
- Net public portion: About Rs 25 crore after the market‑maker allocation.
How Much Do Retail Investors Need to Invest?
The minimum application is 4,000 shares, which means a retail ticket of roughly Rs 2,28,000 if you bid at the top of the band.
Allocation Split
- Non‑institutional investors (NIIs): ~47% of the issue.
- Retail investors: ~47% of the issue.
- Qualified institutional buyers (QIBs): <1% – typical for an SME IPO of this size.
About Armour Security India
Armour Security provides private security and facility‑management services across India. Its offerings include:
- Armed and unarmed guarding
- Integrated facility management
- Housekeeping, firefighting support, and event security
- Manpower services for corporate offices, industrial units, banks, hospitals, schools, and government bodies
The company runs a manpower‑heavy model: only 37 permanent staff but around 1,269 contractual personnel as of February 2025.
Financial Snapshot
- Total income grew from Rs 28.97 crore in FY23 to Rs 36.56 crore in FY25.
- Profit after tax increased to Rs 3.97 crore in FY25 from Rs 2.26 crore two years earlier.
- EBITDA stood at Rs 4.97 crore in FY25.
Use of IPO Proceeds
The company plans to use the raised funds mainly for growth and to strengthen its balance sheet:
- ~Rs 15.90 crore for working‑capital needs (the business is cash‑intensive).
- Capital expenditure on vehicles and equipment.
- Repayment of borrowings of about Rs 2.40 crore.
- General corporate purposes.
What Retail Investors Should Keep in Mind
The grey‑market premium of around 7% suggests a stable listing outlook rather than a short‑term speculative rally. However, the high minimum ticket size may limit participation for smaller investors.
Disclaimer
Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before investing.