Annu Projects IPO Closes With 2.23 Times Subscription, NIIs Drive Demand

Infrastructure utility services provider Annu Projects has concluded its initial public offering (IPO), securing an overall subscription of 2.23 times by the closing day of the bidding process. The public issue, valued at ₹175 crore, was offered at a price range of ₹94 to ₹99 per share.

The public offering comprised a fresh issue of 1,76,83,000 equity shares. Demand for the issue was notably led by non-institutional investors (NIIs), who contributed significantly to the subscription numbers.

According to the company's IPO documentation, the net proceeds from the issue are earmarked for specific operational and financial requirements. Annu Projects plans to allocate ₹115 crore of the funds raised towards meeting its working capital needs. Additionally, ₹15 crore has been designated for capital expenditure requirements, specifically for the purchase of machinery and equipment. The remaining proceeds will be utilized for general corporate purposes.

Annu Projects operates in the infrastructure sector, specializing in the design, development, implementation, operation, and maintenance of essential overhead and underground utilities infrastructure. Its operational verticals span across telecom, sewerage, gas pipeline, and railway signalling.

For the management of the public issue, Mefcom Capital Markets Ltd served as the book running lead manager. Meanwhile, Kfin Technologies Ltd acted as the registrar to the issue, handling the administrative processes related to shares and applications.

"The successful subscription of the Annu Projects IPO at 2.23 times indicates healthy appetite in the public markets for infrastructure and utility service providers. With a significant portion of the capital earmarked for working capital and equipment purchase, the company is positioning itself to execute its ongoing and future utility projects across telecom, gas, and railway signaling more efficiently." — Dr. Shishir Gupta, Founder & CEO, StartupLanes