The initial public offering of Armour Security India received a tepid response from investors on its opening day. The IPO, which began subscription today, January 14, saw minimal interest in the early hours.
Weak Subscription Numbers
By 1:30 PM on the first day, the issue had been subscribed only 0.03 times. Investors placed bids for just 1.46 lakh shares against the total offering of 44.16 lakh shares. This muted response highlights cautious investor sentiment toward the security services company's market debut.
IPO Details and Timeline
The Armour Security India IPO will remain open for subscription until Monday, January 19. The company has set a price band of ₹55 to ₹57 per equity share. Through this fresh issue of 0.47 crore shares, Armour Security aims to raise approximately ₹26.51 crore.
Investment Requirements
Retail investors need to consider the substantial minimum investment required. The IPO lot size is fixed at 4,000 shares, meaning investors must commit at least ₹2.28 lakh to participate.
Share Allocation Structure
The company has reserved specific portions for different investor categories:
- 46,000 shares for Qualified Institutional Buyers (QIB)
- 21.9 lakh shares for Non-Institutional Investors (NII)
- 21.8 lakh shares for retail investors
Important Dates to Remember
Investors should mark several key dates on their calendars:
- Allotment Date: Tuesday, January 20
- Demat Credit: Wednesday, January 21 (for successful applicants)
- Refund Processing: Wednesday, January 21 (for unsuccessful applicants)
- Listing Date: Thursday, January 22 on NSE SME
Market Indicators and Premium Expectations
Market sources indicate a Grey Market Premium (GMP) of 4 for the Armour Security IPO. This suggests the stock might list at approximately a 7% premium to the upper price band of ₹57 per share.
Company Background and Use of Proceeds
Armour Security India specializes in providing comprehensive security solutions. Their services include armed guarding, manpower provision, and security consultancy. The company primarily serves commercial and residential security needs across various sectors.
The net proceeds from the IPO will be utilized to meet working capital requirements and for general corporate purposes. This capital infusion should help the company expand its operations and strengthen its market position.
Issue Management Team
Sobhagya Capital Options Private Limited serves as the book-running lead manager for this IPO. Skyline Financial Services Private Limited acts as the registrar. NNM Securities Private Limited functions as the market maker for the company.
Investment decisions involve market risks. Investors should consult certified financial experts before making any investment choices. Past performance does not guarantee future results.
