Armour Security India is set to make its debut on the NSE SME platform today, with market indicators suggesting muted listing expectations. The grey market premium currently stands at 0%, indicating that investors are not anticipating any immediate gains over the issue price.

IPO Subscription Details

The ₹26.51 crore initial public offering was open for subscription from January 14 to January 19, consisting entirely of a fresh issue of 46.5 lakh shares. The subscription response was modest across investor categories.

Retail investors demonstrated the strongest interest, subscribing their allocated portion 2.58 times, while qualified institutional buyers showed limited enthusiasm with their quota being subscribed approximately once.

Company Profile and Operations

Incorporated in August 1999, Armour Security India operates in the private security and facility management sector. The company offers a comprehensive range of services including armed guarding, manpower deployment, integrated facility management, housekeeping, event security, and firefighting services.

The company maintains a pan-India presence and serves diverse sectors:

• Corporate entities and industrial units
• Banking and financial institutions
• Hospitals and healthcare facilities
• Educational institutions
• Government bodies

As of February 2025, Armour Security employed 37 permanent staff members and over 1,200 contractual personnel, reflecting the labour-intensive nature of its business model.

Financial Performance

Armour Security has demonstrated consistent financial growth in recent periods. The company's profitability has shown an upward trajectory with notable improvements year-over-year.

For the half-year period ended September 2025, the company reported a profit of ₹2.90 crore on total income of ₹19.69 crore, indicating healthy operational performance.

Use of IPO Proceeds

The funds raised through the public offering will be allocated towards several strategic initiatives to support the company's growth and operational requirements:

• Working capital requirements
• Capital expenditure on equipment and vehicles
• Repayment of existing borrowings
• General corporate purposes

With the listing scheduled for today, market participants will closely watch the stock's performance to gauge investor appetite for companies in the security and facility management sector on the SME platform.

Armour Security India's initial public offering opened for subscription today, marking another entry in the SME segment. The ₹26.51 crore issue, structured entirely as a fresh offering, will accept applications until January 19, with the company scheduled to make its market debut on January 22.

IPO Structure and Pricing Details

The public offering is priced in a band of ₹55 to ₹57 per share, with shares carrying a face value of ₹10.00 each. The company is offering 46.5 lakh equity shares, with approximately ₹25.00 crore worth of shares available to the public after accounting for the market maker portion.

The allocation structure heavily favors retail and non-institutional investors. Nearly 47% of the issue is reserved for non-institutional investors, while retail investors account for close to 47% as well. The qualified institutional buyer portion represents just under 1%, which is typical for SME issues of this size. Retail participation requires a minimum application of 4,000 shares, translating to an investment of ₹2,28,000 at the upper end of the price band.

Market Sentiment and Grey Market Premium

Early market indicators show modest positive sentiment, with the grey market premium currently around 7% over the upper end of the price band. While SME IPO grey market premiums tend to be volatile and thinly traded, this premium suggests expectations of a stable listing rather than aggressive short-term gains.

Business Operations and Model

Armour Security India operates in the private security and facility management space, providing comprehensive security solutions across multiple sectors. The company offers armed and unarmed guarding services, integrated facility management, housekeeping, firefighting support, event security, and various manpower services.

The company's client base spans diverse sectors including:

• Corporate offices and industrial units
• Banks and financial institutions
• Healthcare institutions
• Educational campuses
• Government establishments

The business follows a manpower-heavy model, maintaining a relatively small permanent workforce of 37 employees while operating with a much larger contractual base of around 1,269 personnel as of February 2025. Management emphasizes that its pan-India presence and diversified service offerings help manage regional demand shifts and client-specific requirements.

Financial Performance

Armour Security India has demonstrated steady financial growth over recent years. The company's revenue trajectory shows consistent expansion, with total income rising from ₹28.97 crore in FY23 to ₹36.56 crore in FY25.

The profit after tax showed significant improvement, increasing to ₹3.97 crore in FY25 from ₹2.26 crore in FY23. The company reported EBITDA of ₹4.97 crore in FY25.

Fund Utilization Plans

The company has outlined specific plans for utilizing the IPO proceeds to support growth and strengthen its balance sheet. Around ₹15.90 crore will be allocated to fund working capital needs, reflecting the cash-intensive nature of manpower services. Additional funds will be directed toward capital expenditure for vehicles and equipment, repayment of borrowings worth approximately ₹2.40 crore, and general corporate purposes.