The company has fixed the price band for its IPO at ₹94-99 per share.
Investors can bid for a minimum of 151 equity shares and in multiples thereof. At the upper price band, retail investors will need to invest a minimum of ₹14,949, while the maximum investment would be ₹1,94,337.
Annu Projects is looking to raise ₹175.06 crore through the IPO, which comprises an entirely fresh issue of 1.76 crore equity shares. At the upper end of the price band, the company will command a market capitalisation of around ₹648 crore.
Should you subscribe?
SBI Securities: Neutral
The brokerage has assigned a ‘Neutral’ rating to the IPO, saying it would prefer to monitor the company’s cash-flow generation and consistency in execution post-listing.
APL is a diversified EPC infrastructure company with a strong execution track record and healthy earnings growth over FY24-FY26, with revenue, EBITDA and PAT registering CAGRs of 25%, 33% and 38%, respectively.
At the upper price band of ₹99, the issue is valued at 19.6x FY26 earnings on a post-issue basis, which appears broadly in line with its peers. However, high customer concentration, dependence on government contracts and an extended working capital cycle raise concerns over the quality and sustainability of earnings.
Anand Rathi: Subscribe – Long Term
Anand Rathi said Annu Projects is valued at an implied P/E multiple of 19.6x based on FY26 earnings at the upper price band. While the brokerage believes the IPO valuation is fully priced at the upper band, it has recommended subscribing to the issue from a long-term perspective.
The company has reserved 50% of the IPO shares for retail investors, while 40% have been allocated to non-institutional investors and the remaining 10% to qualified institutional buyers.
Annu Projects plans to use ₹15.4 crore of the net IPO proceeds to purchase machinery and equipment. A further ₹115 crore will be utilised to meet working capital requirements, while the remaining funds will be used for general corporate purposes.
The New Delhi-based EPC company provides overhead and underground utilities infrastructure services across the telecom, sewerage and gas pipeline segments. These verticals contributed 41.5%, 52.7% and 4%, respectively, to its FY26 revenue.
Annu Projects reported a standalone net profit of ₹33 crore and revenue of ₹241.2 crore for FY26.
The company competes with listed players such as Likhitha Infrastructure, Bondada Engineering, EMS and Suyog Telematics.
Mefcom Capital Markets is the sole book-running lead manager for the Annu Projects IPO. The equity shares are proposed to be listed on both the NSE and BSE.
