Armee Infotech, an IT infrastructure solutions provider with headquarters in Ahmedabad, has submitted preliminary papers with the Securities and Exchange Board of India (SEBI) to raise up to Rs 250 crore via an IPO.

An initial public offering (IPO) is a single new issue that does not include an offer to buy.

The proceeds from the issue, excluding IPO expenses, will primarily be used for working capital requirements totalling Rs 160 crore and for repaying debts amounting to Rs 10.63 crore. The remaining funds will be allocated for general corporate purposes.

As of the end of April this year, Armee Infotech’s outstanding borrowings stood at Rs 79.8 crore.

The Patel family holds a 92.72% stake in the Gujarat-based company, with the remaining shares owned by public shareholders.

Armee Infotech, which also provides IT-managed services, has already surpassed its fiscal 2023 bottom line and top line numbers in the nine-month period ending December FY24. During this period, the company achieved a profit of Rs 24.96 crore on revenues of Rs 560.2 crore.

In the financial year 2023, Armee Infotech’s profit surged by 393% to Rs 16.6 crore, compared to Rs 3.4 crore in the previous year. Revenue from operations also saw a significant increase of 301.65, reaching Rs 502.7 crore.

However, in the year ending March FY22, the bottom line decreased by 9.7% to Rs 3.4 crore, down from Rs 3.7 crore in FY21. Despite this, revenue for the same period grew by 19.2%, amounting to Rs 125.2 crore.

Khandwala Securities and Saffron Capital Advisors are serving as the book-running lead managers for the issue.