ArMee Infotech IPO subscribed 38% on Day 1 so far; NII, retail investors lead gains – Check GMP

New business data points to the fact that ArMee Infotech's initial public offering (IPO) was subscribed 38 percent on the first day of bidding on Wednesday, with retail and non-institutional market participants leading the subscription.

The retail individual market participants (RIIs) portion was subscribed 30 percent, while the non-institutional market participants (NIIs) portion saw 26 percent subscription. The qualified institutional buyers (QIBs) portion was subscribed 93 percent.

Ahmedabad-based IT infrastructure and managed services firm ArMee Infotech mobilised Rs 39.93 crore from four anchor market participants.

The IPO opened for public subscription on September 23 and will close on September 25. The offering comprises entirely a fresh offering of shares.

The firm provides IT hardware and software under its IT infrastructure business, while its managed services include technical manpower, skill development training and annual maintenance services.

ArMee Infotech has additionally ventured into renewable energy, providing engineering, procurement and construction (EPC) services for solar power projects, developing solar power projects under power purchase agreements (PPAs), and offering Battery Energy Storage System (BESS) solutions.

The firm will use Rs 155 crore of the net fresh offering proceeds to secure performance bank guarantees (PBGs) for business expansion and Rs 60 crore for working capital requirements.

A further Rs 6.5 crore will be used to repay debt, while the remaining proceeds will be used for general corporate purposes.