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 growing infrastructure business.
Annu Projects works on projects related to fibre-optic networks, sewerage systems and gas pipelines.
But before investors apply, one important question remains: Is the Annu Projects IPO worth subscribing to?
The answer may depend on more than just the expected listing gain. Investors should also look at the company’s valuation, order execution and ability to generate cash.
Annu Projects IPO Price and Investment Details
Annu Projects has fixed 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 entire money raised through the fresh issue will go to the company rather than existing shareholders.
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.
The IPO will remain open until August 28. The shares are expected to be allotted on August 31 and listed on September 2 on both NSE and BSE.
Annu Projects IPO GMP Is Currently Zero
The grey market premium, or GMP, for Annu Projects IPO is currently Rs 0.
At the upper IPO price of Rs 99, this suggests an estimated listing price of around Rs 99.
In simple terms, the current grey market indication points towards a flat listing.
However, investors should not rely solely on GMP.
It is unofficial and can change before the shares are listed.
A positive or negative GMP also does not guarantee the actual listing price.
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 telecom fibre-optic networks, sewerage projects and gas pipelines.
Because of this, its business is linked to infrastructure spending and projects connected with government agencies.
What Are Brokerages Saying About the IPO?
Brokerage opinions on the IPO are mixed.
Anand Rathi Research believes the company’s valuation is relatively high but still recommends subscribing for the long term.
At the upper price band, the IPO is valued at around 19.6 times its FY2026 earnings.
The brokerage believes the company has long-term potential despite the relatively expensive valuation.
SBI Securities, however, has taken a more cautious approach.
The brokerage noted that Annu Projects’ revenue, EBITDA and profit after tax grew at compound annual growth rates of 25%, 33% and 38%, respectively, between FY24 and FY26.
But it also highlighted some risks, including dependence on a limited number of customers, reliance on government contracts and a stretched working-capital cycle.
Because of these concerns, SBI Securities has given the IPO a ‘Neutral’ rating and suggested monitoring the company’s cash generation and execution after listing.
Should You Subscribe to Annu Projects IPO?
At the upper price band of Rs 99, Annu Projects is valued at around 19.6 times its FY2026 earnings.
The company has reported strong growth in revenue and profits, which could be a positive for long-term investors.
However, its valuation, customer concentration, dependence on government contracts and working-capital requirements are factors that investors should consider carefully.
Anand Rathi has a long-term ‘Subscribe’ view, while SBI Securities recommends a more cautious approach.
Therefore, investors should look beyond the current zero GMP and consider the company’s financial performance, cash flows and ability to execute its infrastructure orders before making an investment decision.
