EPC Firm Annu Projects Announces IPO Worth ₹175.06 Crore

Engineering, procurement, and construction (EPC) company Annu Projects Limited has announced its initial public offering (IPO), slated to open on August 25 and close on August 28.

The public issue is valued at ₹175.06 crore and consists entirely of a fresh issue of up to 1,76,83,000 equity shares. The offering allocates up to 10 percent of the quota for Qualified Institutional Buyers (QIBs), 50 percent for retail bidders, and 40 percent for Non-Institutional Investors (NIIs).

According to the company's IPO details, the net proceeds will be deployed primarily toward two major areas. An amount of ₹15.4 crore will be used for the purchase of machinery and equipment, while ₹115 crore has been allocated to meet working capital requirements. The remaining proceeds will be directed toward general corporate purposes.

Annu Projects Limited operates in the design, development, implementation, operations, and maintenance of essential overhead and underground utilities infrastructure. Its business spans three key verticals: telecom infrastructure, sewerage infrastructure, and gas pipelines.

Mefcom Capital Markets is serving as the sole book-running lead manager for the IPO, with Kfin Technologies acting as the registrar to the issue.

Ahead of the opening, brokerage firm SBI Securities has issued a neutral rating on the issue. The brokerage noted that the company is a diversified EPC infrastructure firm with a strong execution track record and healthy earnings growth over FY24-26, registering a CAGR of 25 percent in revenue, 33 percent in EBITDA, and 38 percent in PAT. At the upper price band of ₹99, the issue is valued at a P/E multiple of 19.6x FY26 earnings on a post-issue basis, which is considered in-line with peers.

However, the brokerage highlighted potential concerns regarding high customer concentration, dependence on government contracts, and a stretched working capital cycle, which could impact the quality and durability of earnings. Consequently, investors have been advised to monitor cash-flow generation and execution consistency following the listing.

"The Annu Projects IPO highlights the capital requirements typical of infrastructure and EPC businesses, particularly regarding working capital management. While the company demonstrates strong historical earnings growth, investors must carefully weigh external risks such as government contract dependence and customer concentration. Monitoring post-listing execution and cash-flow consistency will be crucial for assessing long-term value in this sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes