The Rs 175 crore Annu Projects IPO has opened for subscription today, August 25.
The engineering, procurement and construction (EPC) company is looking to raise money for its infrastructure business.
Annu Projects works on projects related to fibre-optic networks, sewerage systems and gas pipelines.
But before applying, investors need to look beyond the expected listing gains.
The company’s valuation, order execution and ability to manage cash flows are also important.
Here is a look at the key details of the IPO and what brokerages are saying.
Annu Projects IPO Price and Investment Details
Annu Projects has set the IPO price band at Rs 94 to Rs 99 per share.
The company plans to raise around Rs 175.06 crore through a fresh issue of approximately 1.77 crore shares.
There is no offer-for-sale component.
This means the money raised through the IPO will go to the company rather than existing shareholders selling their shares.
For retail investors, the minimum lot size is 151 shares.
At the upper price of Rs 99, investors will need to spend Rs 14,949 for one lot.
| Particulars | Details |
|---|---|
| IPO opens | August 25 |
| IPO closes | August 28 |
| Price band | Rs 94-99 |
| Issue size | Rs 175.06 crore |
| Fresh issue | 1.77 crore shares |
| Expected allotment | August 31 |
| Listing date | September 2 |
| Exchanges | NSE, BSE |
Annu Projects IPO GMP Is at Rs 0
The latest grey market premium (GMP) for the Annu Projects IPO is Rs 0.
At the upper price band of Rs 99, this suggests an estimated listing price of around Rs 99.
In other words, the grey market is currently indicating a flat listing.
However, investors should not treat GMP as a guarantee.
Grey market prices are unofficial and depend largely on market sentiment.
The GMP can also change before the shares are listed.
What Does Annu Projects Do?
Annu Projects operates in the EPC infrastructure sector.
Its work includes both overhead and underground utility infrastructure.
The company is involved in projects related to telecom fibre-optic networks, sewerage and gas pipelines.
This means the company can benefit from infrastructure spending and projects linked to government-related work.
What Are Brokerages Saying About the IPO?
Brokerage opinions on the IPO are mixed.
Anand Rathi Research believes the valuation is on the higher side but still recommends the IPO for long-term investors.
At the upper price band, the company is valued at around 19.6 times its FY2026 earnings.
The brokerage believes the company has long-term potential but considers the IPO fully priced at the upper band.
SBI Securities, however, has taken a more cautious approach.
It noted that Annu Projects recorded strong growth between FY24 and FY26, with revenue, EBITDA and profit after tax growing at compound annual growth rates of 25%, 33% and 38%, respectively.
However, SBI Securities also highlighted some concerns, including customer concentration, dependence on government contracts and a stretched working-capital cycle.
The brokerage has therefore given the IPO a Neutral rating and wants investors to monitor the company’s cash-flow generation and execution after listing.
Should You Apply for Annu Projects IPO?
At the upper price of Rs 99, Annu Projects is valued at around 19.6 times FY26 earnings.
The company has reported strong financial growth, which could attract long-term investors.
However, its dependence on government contracts, customer concentration and working-capital requirements are risks that investors should consider.
Anand Rathi sees long-term potential, while SBI Securities recommends a more cautious approach.
Therefore, investors should not make their decision based only on the current GMP or expected listing gains.
Valuation, order execution and cash-flow performance will be important factors to watch before and after the listing.
