Armour Security IPO Makes Weak Debut with 20% Discount, Lists at ₹45.60 Against Poor 1.82x Subscription

Armour Security India Ltd, a Delhi-based company incorporated in August 1999 specializing in providing comprehensive range of security services including armed guarding, manpower services, and consultancy primarily focused on commercial and residential security needs across various sectors with PAN India operations offering private security services, integrated facility management services, housekeeping services, event management services, firefighting services, security training, supervision services, made a weak debut on NSE SME on Wednesday, January 22, 2026. After closing its IPO bidding between January 14-19, 2026, the company commenced trading with a steep decline of 20% opening at ₹45.60 and hit lower circuit at ₹43.35 (down 23.95% from issue price).

Armour Security Listing Details

Armour Security launched its IPO at ₹57 per share with minimum investment of 4,000 shares costing ₹2,28,000. The IPO received tepid response with subscription of only 1.82 times - individual investors at 2.58 times, NII at 1.08 times, QIB at just 1.00 times with only 1 application, total applications of merely 1,512.

First-Day Trading Performance

Listing Price: Armour Security opened at ₹45.60 representing steep decline of 20% from issue price of ₹57.00, quickly hit lower circuit at ₹43.35 (down 23.95%), with VWAP at ₹44.19, reflecting extremely negative market sentiment with severe opening discount followed by lower circuit hit creating massive investor losses with market capitalisation declining to ₹73.13 crore against pre-IPO market cap of ₹96.16 crore and traded volume of only 0.16 lakh shares indicating poor liquidity.

Growth Drivers and Challenges

Growth Drivers:

Diversified Services Portfolio: Comprehensive security solutions including private security services, integrated facility management, housekeeping, event management, firefighting services, security training, supervision services, and blue-collar manpower services under one roof.

Pan India Operations: Established presence with branches across various states enabling navigation of ever-changing dynamics of security market with customer retention capabilities.

Financial Performance: Revenue of ₹19.69 crore in H1 FY26, consistent growth from ₹28.97 crore in FY23 to ₹36.56 crore in FY25, ROE of 13.61%, ROCE of 15.45%, healthy PAT margin of 14.76%, EBITDA margin of 21.84%.

Low Leverage: Debt-to-equity ratio of only 0.28 indicating conservative financial structure with total borrowings of ₹6.01 crore against net worth of ₹21.34 crore.

Challenges:

Severe Market Rejection: IPO barely subscribed at 1.82 times with sNII undersubscribed at 0.92 times and QIB receiving only 1 application, opening decline of 20% followed by lower circuit at 23.95% down creating massive investor losses.

Aggressive Pricing: Analyst categorically states issue appears aggressively priced with recommendation that there is no harm in skipping this pricey bet.

Highly Competitive Segment: Operating in highly competitive and fragmented security services segment with multiple unorganised players limiting pricing power.

Small Scale Operations: Modest revenue base of ₹36.56 crore annually with only 37 permanent employees indicating limited operational scale and longer gestation for meaningful growth.

Utilisation of IPO Proceeds

Working Capital: ₹15.90 crore for funding working capital requirements representing largest allocation supporting security services operations.

Capital Expenditure: ₹1.61 crore for purchasing machinery, equipment, and vehicles enhancing operational capabilities.

Debt Repayment: ₹2.40 crore for prepayment/repayment of certain outstanding borrowings strengthening balance sheet.

General Corporate Expenses: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹19.69 crore for H1 FY26, ₹36.56 crore for FY25, growth from ₹33.10 crore in FY24 and ₹28.97 crore in FY23, reflecting steady expansion in security and facility management services.

Net Profit: ₹2.90 crore in H1 FY26, ₹3.97 crore in FY25, growth from ₹2.62 crore in FY24, demonstrating consistent profitability with post-IPO EPS of ₹3.44 and P/E of 16.55x.