Armour Security (India) IPO

About Armour Security (India) IPO

The IPO of Armour Security (India) Ltd consists entirely of a fresh issue of up to 46,50,000 equity shares. There is no offer for sale and it’s a 100% book-built issue.

Objectives of Armour Security (India) IPO

• Funding working capital requirements of the Company
• Funding capital expenditure requirements for purchasing of machinery, equipment and vehicles
• Prepayment/re-payment of, in part or full, certain outstanding borrowings of the company
• General corporate expenses

Industry Outlook

The global private security market size is projected to be worth US$ 3,51,893.2 million by 2034. According to the estimates, the market is anticipated to exhibit a 3.60% CAGR until 2034. The Indian private security market is expanding at a rapid pace, expected to have an annual growth rate of 9.93%.

The private security sector has emerged into a major industry by virtue of the employment of a large body of manpower, both skilled and unskilled, to meet the burgeoning demands of the corporate sector across the SMSE spectrum. Key drivers for the exponential growth of this sector are attributed to the increase in urbanisation, increasing perception of insecurity amongst the civil society, emergence of contained commercial complexes and residential townships, and shortage of police personnel.

Company Information

Armour Security (India) Ltd delivers comprehensive private security solutions to its clientele, encompassing security planning and management services. The company provides both individual security personnel and full security teams, tailored to diverse sectors such as corporate, industrial, banking, healthcare, governmental institutions, educational establishments, and universities.

Its services are tailored to address the distinct security needs of each client. To effectively meet the varied requirements and increasing demands of its clients nationwide, the company leverages modern equipment and a trained workforce. Additionally, it offers integrated facility management, housekeeping, and manpower services, comprising skilled, semi-skilled, and unskilled personnel.

Risks of Armour Security (India) IPO

• Dependence on Security Manpower and Integrated Facility Management Services

The company is significantly dependent on the provision of its services namely, Security manpower services and Integrated facility management. Its aggregate revenue from Security manpower services and Integrated facility management accounted for 46.12% and 53.88% respectively for the period ended 30 September 2024, 47.67% and 52.33% respective for the period ended March 2024, 44.32% and 55.68% respectively for the period ended March 2023, 51.16% and 48.84% respectively for the period ended March 2022.

An inability to anticipate and adapt to evolving client preferences and demand for the said services, or ensure service quality, may adversely impact demand for its services, brand loyalty and consequently impact its business, results of operations, financial condition and cash flows.

• Reliance on Key Customers

The company’s revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations. Few clients may represent a larger part of its client portfolio, increasing the potential volatility of its results.

The company cannot assure that it shall generate the same quantum of business, or any business at all, and the loss of business from one or more of them may adversely affect its revenues and results of operations.

• Geographical Concentration

A significant portion of its revenue is derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

Skyline Financial Services Pvt Ltd is the registrar of the Armour Security (India). The book-running lead managers are

• Corpwis Advisors Pvt Ltd

Armour Security (India) Business Model

Armour Security (India) Ltd delivers comprehensive private security solutions to its clientele, encompassing security planning and management services. It provides both individual security personnel and full security teams, tailored to diverse sectors such as corporate, industrial, banking, healthcare, governmental institutions, educational establishments, and universities.

Its services are tailored to address the distinct security needs of each client. To effectively meet the varied requirements and increasing demands of its clients nationwide, it leverages modern equipment and a trained workforce. Additionally, it offers integrated facility management, housekeeping, and manpower services, comprising skilled, semi-skilled, and unskilled personnel.

Armour Security (India) Growth Trajectory

The company’s PAT margin grew from 1.09% in FY 22 to 7.95% in FY 24. Its EBITDA margin also recorded a growth from 1.96% in FY 22 to 11.08% in FY 24.

Armour Security (India) Market Position

Originating from a single office in Defence Colony, Delhi, over the last two decades Armour Security (India) Ltd has expanded its operations across PAN India, consistently delivering our quality services. The company has established branch offices in various states of India which helped it to navigate the ever-changing dynamics of the security market.

By meticulously selecting its clients, it has accumulated substantial experience, developed methodologies, and honed its capabilities, ensuring the provision of Manpower Security, Integrated Facility Solutions.

How to Check Allotment Status of Armour Security (India)?

1. Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Pvt Ltd
• Choose ‘Public Issue’ from ‘Investor’ dropdown
• Select the Name of the Company from dropdown
• Enter either your ‘Application No’, PAN or DP ID / Client ID
• Click on ‘Search’ to know the status

2. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Armour Security (India) Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN Then click 'Submit' to know the allotment status.

How to Apply for Armour Security (India) IPO?

• Step 1. Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2. Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3. Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4. Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5. Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.