All you need to know about Annu Projects IPO
₹15.4 crore of the net IPO proceeds will go towards the purchase of machinery and equipment and ₹115 crore will be allocated to meet its working capital requirements
All you need to know about Annu Projects IPO: The IPO opens on August 25 and closes on 28, with a size of ₹175.06 crore. The issue is entirely new and comprises up to 1,76,83,000 equity shares. Quota allocation is available for Qualified Institutional Bidders (QIBs) at up to 10 per cent, retail bidders at 50 per cent, and Non-Resident Indians (NIIs) at 40 per cent.
The proceeds will be used for purchasing machinery and equipment, meeting working capital requirements, and general corporate purposes. Annu Projects Limited is an engineering, procurement, and construction (EPC) company involved in designing, developing, implementing, operating, and maintaining essential overhead and underground utilities infrastructure across various sectors.
Book-running lead manager Mefcom Capital Markets and registrar Kfin Technologies are responsible for the IPO. Anand Rathi rates the IPO with a "Subscribe – Long Term" rating due to its fully priced valuation at the upper band. SBI Securities notes the company's diversified EPC infrastructure, strong execution track record, and healthy earnings growth, but raises concerns over customer concentration, dependence on government contracts, and a stretched working capital cycle.
They assign a NEUTRAL rating to the IPO, recommending monitoring cash-flow generation and execution consistency post-listing.
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