ArMee Infotech shares make weak debut, list at nearly 2% discount on BSE — should you buy, sell or hold?

Reports coming in for today mention that Shares of ArMee Infotech made a weak debut on the bourses on September 30, with the stock stock-exchange debut at a discount of nearly 2 percent to its offering price on the BSE after the firm's initial public offering (IPO) received 2.44 times subscription during the three-day bidding period.

ArMee Infotech shares opened at Rs 368.85 on the BSE, down 1.64 percent from the offering price of Rs 375 per share. On the NSE, the stock made a flat debut at Rs 375, in line with its IPO price.

The firm's market capitalisation stood at around Rs 1,170.41 crore following the stock-exchange debut.

The stock's debut was below the grey market indications. ArMee Infotech shares were commanding a grey market premium (GMP) of around Rs 6 in the morning, according to market tracking platform InvestorGain. Based on the upper end of the IPO price range of Rs 375, the GMP indicated an estimated stock-exchange debut price of around Rs 381, translating into a premium of approximately 1.6 percent.

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That stated, GMP is an unofficial indicator based on grey market activity and can fluctuate before stock-exchange debut. It does not guarantee the actual stock-exchange debut price or post-stock-exchange debut returns.

The Rs 300-crore IPO received an overall subscription of 2.44 times during the three-day bidding period.

The offering saw demand across all investor categories. The qualified institutional buyers (QIBs) portion was subscribed 3.20 times, while the non-institutional investor (NII) category received 2.24 times subscription. The retail portion was subscribed 2.65 times.

The IPO comprised an entirely fresh offering of 80 lakh equity shares. The firm had set the price range at Rs 350-375 per share.

The minimum lot size was 40 shares, meaning retail market participants were required to invest Rs 15,000 to subscribe to one lot at the upper end of the price range.

The ArMee Infotech IPO opened for subscription on September 23 and closed on September 25. The allotment process was scheduled to be finalised after the close of bidding, ahead of the stock's stock-exchange debut on September 30.

For market participants who received an allotment, the shares were credited to their demat accounts before stock-exchange debut, with the corresponding amount debited from the funds blocked at the time of application.

For market participants who did not receive an allotment, no shares were credited to their demat accounts and the amount blocked against the IPO application was released after completion of the unblocking process.

Founded in 2003 and headquartered in Ahmedabad, Gujarat, ArMee Infotech is an IT infrastructure solutions and managed services firm.

The firm provides technology solutions to clients across sectors including government, corporates, education and banking, financial services and insurance (BFSI).

Over the years, ArMee Infotech has additionally expanded into areas such as retail sales and renewable energy, alongside its core IT infrastructure and managed services business.