Armour Security Shares Plunge 20% on Weak Stock Market Debut
Armour Security (India) shares were locked at a 5% lower circuit on Thursday following a disappointing debut on the Indian stock market. The company's initial public offering (IPO) listing date was today, January 22, 2025, marking its entry as an SME stock on the NSE SME platform.
Sharp Discount to Issue Price on Listing
On Thursday, Armour Security shares were listed at ₹45.60 per share on the NSE SME, representing a significant discount of 20% to the issue price of ₹57 per share. The stock immediately faced selling pressure and quickly hit the 5% lower circuit, settling at ₹43.35 per share.
This weak listing performance was below market expectations, as indicated by trends in the grey market premium (GMP). Ahead of the share debut, the Armour Security IPO GMP stood at ₹0 per share, signaling that analysts anticipated a flat listing at the issue price without any premium or discount.
IPO Subscription and Financial Details
The Armour Security IPO was open for subscription from January 14 to January 19, with the allotment status finalized on January 20. The company successfully raised ₹26.51 crore through this book-building issue, which consisted entirely of a fresh issue of 46.50 lakh equity shares. The price band for the offering was set between ₹55 and ₹57 per share.
In terms of subscription, the public issue was oversubscribed 1.82 times overall. Breaking down the categories:
- Retail individual investors showed strong interest, subscribing 2.58 times
- Qualified Institutional Buyers (QIB) segment (excluding anchor investors) was subscribed exactly 1 time
- Non-Institutional Investors (NII) category saw 1.08 times subscription
Key Players and Current Trading Status
Sobhagya Capital Options Pvt. Ltd. served as the book running lead manager for the IPO, while Skyline Financial Services Pvt. Ltd. acted as the registrar for the Armour Security public offering.
As of 12:35 PM on Thursday, Armour Security shares remained locked at the 5% lower circuit of ₹43.35 per share on the NSE SME platform. This represents a substantial decline of 23.95% from the original issue price of ₹57 per share, reflecting the challenging market reception for this SME offering.
The performance highlights the volatility and risk associated with IPO investments, particularly in the SME segment, where market sentiment and grey market indicators can significantly influence listing outcomes.
