Annu Projects Limited is launching a ₹175.06 crore book-built IPO from August 25 to August 28, 2026. The issue is entirely a fresh issue of up to 1.7683 crore equity shares, with most of the proceeds proposed to be used for working capital and the balance primarily allocated towards machinery and equipment.
The Annu Projects IPO combines strong recent financial growth, improving profitability and a sizeable order book. However, the company also faces significant risks, including very high customer concentration, dependence on government contracts, weak operating cash flow, rising borrowings and execution-related risks. The IPO should therefore be assessed on the quality and sustainability of its earnings and cash flows rather than short-term listing expectations or grey-market premium.
Important: This Annu Projects IPO Analysis is based on the company's RHP, abridged prospectus and publicly available IPO information available before the issue opens. Investors should not base their IPO investment decision solely on GMP or expected listing gains.
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Table of Contents
- Annu Projects IPO Details
- What Does Annu Projects Do?
- Annu Projects Business Model and Revenue Mix
- Annu Projects Financial Performance
- Annu Projects IPO Order Book
- Objects of the Annu Projects IPO
- Annu Projects IPO Valuation
- Key Strengths of Annu Projects
- Major Risks in Annu Projects IPO
- Annu Projects IPO GMP and Listing Expectations
- What Investors Should Check During the IPO
- Annu Projects IPO Review: Should You Apply?
- Conclusion
- FAQs About Lumino Industries IPO
Annu Projects is coming to the primary market with a book-built IPO worth approximately ₹175.06 crore. The issue will remain open from August 25 to August 28, 2026, at a price band of ₹94 to ₹99 per share.
The issue does not include an offer for sale. Therefore, the entire amount raised through the IPO will go to the company, subject to issue-related expenses and the terms of the offer.
| Particular |
Details |
| Company |
Annu Projects Limited |
| IPO type |
Book-built IPO |
| Issue dates |
August 25 to August 28, 2026 |
| Price band |
₹94 to ₹99 |
| Face value |
₹10 |
| Fresh issue |
Up to 1,76,83,000 shares |
| Offer for sale |
None |
| Issue size |
Up to approximately ₹175.06 crore |
| Lot size |
151 shares |
| Minimum investment |
₹14,949 at ₹99 |
| Maximum retail application |
13 lots, ₹1,94,337 |
| Listing |
BSE and NSE |
| Tentative allotment |
August 31, 2026 |
| Tentative listing |
September 2, 2026 |
| Lead manager |
Mefcom Capital Markets Limited |
| Registrar |
KFin Technologies Limited |
The retail portion is capped at 50% of the issue, while up to 40% is reserved for non-institutional investors and at least 10% for qualified institutional buyers.
Since the issue is entirely a fresh issue, Annu Projects will receive the IPO proceeds rather than selling shareholders. This provides the company with additional capital for its stated purposes, although the issue will also result in dilution for existing shareholders after the new shares are issued.
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Get the latest issue details, price band, lot size, and other key information on the Annu Projects IPO before evaluating the offer.
Established in 2003, Annu Projects is an engineering, procurement and construction, or EPC, company focused on overhead and underground utilities infrastructure.
Its principal business verticals include:
The company has laid more than 26,200 kilometres of optical-fibre cable networks and maintains more than 62,800 kilometres of OFC networks.
In sewerage infrastructure, Annu Projects has laid more than 298 kilometres of sewerage pipes and has undertaken projects involving sewerage treatment plants, pumping stations and house-service connections.
Its gas pipeline business includes more than 537 kilometres of MDPE pipelines and approximately 38,300 GI domestic gas connections.
As of June 30, 2026, the company's ongoing projects were spread across Sikkim, West Bengal, Odisha, Jharkhand, Bihar, Madhya Pradesh, Kerala, Goa and the Andaman and Nicobar Islands.
Annu Projects serves public-sector entities, government departments, private companies and other EPC contractors. Depending on the project, it executes contracts directly, through sub-contracts or through joint ventures.
Annu Projects remains substantially dependent on telecom and sewerage infrastructure. More than 90% of its revenue from operations came from these two verticals during the relevant financial years, according to the RHP.
This concentration provides the company with specialised experience in its core infrastructure areas. However, it also means that a slowdown in telecom or sewerage spending, postponement of tenders or changes in project activity could have a material impact on revenue.
The company also has significant geographical concentration. Bihar, Jharkhand, Goa, West Bengal and Madhya Pradesh together contributed more than 70% of revenue from operations in each of FY2024, FY2025 and FY2026.
Therefore, while Annu Projects operates across several states and infrastructure segments, its revenue remains concentrated across a limited number of customers, business verticals and regions.
Annu Projects has reported strong growth in revenue, EBITDA and profit over the last three financial years. Revenue increased consistently from FY2024 to FY2026, while profitability improved at a faster pace in FY2026.
Annu Projects Financial Performance: FY2024-FY2025
| ₹ crore |
FY2024 |
FY2025 |
| Revenue from operations |
₹153.98 cr |
₹180.07 cr |
| EBITDA |
₹28.50 cr |
₹32.19 cr |
| EBITDA margin |
18.51% |
17.88% |
| PAT |
₹17.39 cr |
₹21.10 cr |
| PAT margin |
11.29% |
11.72% |
| Net worth |
₹68.93 cr |
₹122.06 cr |
| Total borrowings |
₹19.69 cr |
₹22.27 cr |
| NAV per share |
₹16.13 |
₹25.53 |
| Operating cash flow |
₹0.82 cr |
-₹35.38 cr |
Annu Projects Financial Performance: FY2026
| ₹ crore |
FY2026 |
| Revenue from operations |
₹241.25 cr |
| EBITDA |
₹50.19 cr |
| EBITDA margin |
20.81% |
| PAT |
₹33.03 cr |
| PAT margin |
13.69% |
| Net worth |
₹155.26 cr |
| Total borrowings |
₹52.54 cr |
| NAV per share |
₹32.48 |
| Operating cash flow |
-₹0.25 cr |
The figures above are converted from the RHP's reported amounts in ₹ million.
Revenue Growth
Revenue from operations increased from ₹153.98 crore in FY2024 to ₹180.07 crore in FY2025 and further to ₹241.25 crore in FY2026.
This represents a two-year compound annual growth rate of approximately 25.16%. FY2026 was particularly strong, with revenue increasing by approximately 34% year-on-year.
Profitability Improvement
EBITDA increased from ₹28.50 crore in FY2024 to ₹50.19 crore in FY2026. After declining slightly from 18.51% in FY2024 to 17.88% in FY2025, the EBITDA margin expanded to 20.81% in FY2026.
Profit after tax increased from ₹17.39 crore in FY2024 to ₹21.10 crore in FY2025 and ₹33.03 crore in FY2026. PAT margin also improved from 11.72% in FY2025 to 13.69% in FY2026.
The combination of revenue growth and margin expansion indicates stronger reported profitability in FY2026. However, investors should assess whether these margins can be sustained and whether project mix, execution timing or working-capital movements contributed to the improvement.
Borrowings and Operating Cash Flow
Borrowings increased sharply from ₹22.27 crore in FY2025 to ₹52.54 crore in FY2026. At the same time, operating cash flow remained weak, moving from negative ₹35.38 crore in FY2025 to marginally negative ₹0.25 crore in FY2026.
This is an important consideration for an EPC company. Accounting profit does not necessarily translate into cash because contractors often need to fund materials, labour and other project expenses before receiving milestone-based payments.
A prolonged receivable cycle can therefore increase working-capital requirements and may lead to higher borrowing and finance costs.
The order book is one of the key strengths of the Annu Projects IPO. The company reported the following order-book position:
Annu Projects Order Book: FY2024-FY2025
| Particular |
FY2024 |
FY2025 |
| Order book |
₹707.77 cr |
₹479.67 cr |
| Book-to-bill ratio |
4.60x |
2.66x |
Annu Projects Order Book: FY2026
| Particular |
FY2026 |
| Order book |
₹938.65 cr |
| Book-to-bill ratio |
3.89x |
The FY2026 order book of ₹938.65 crore was approximately 3.9 times FY2026 revenue. It also nearly doubled from ₹479.67 crore in FY2025.
A strong order book can provide revenue visibility and indicates that the company has secured projects that could support future growth.
However, the order book should not be treated as guaranteed future revenue. According to the RHP, orders may be modified, delayed, cancelled, put on hold or not fully paid.
Project execution can also depend on several factors, including:
The RHP also reports a larger figure of ₹1,959.35 crore across 23 ongoing projects as of June 30, 2026 in certain public IPO coverage. Investors should distinguish this broader value of ongoing projects from the company's reported order book of ₹938.65 crore, as these may not represent the same measure.
For valuation and order-book analysis, the order-book figure should be the one disclosed and defined in the RHP.
Annu Projects proposes to use the IPO proceeds for three broad purposes.
| Object |
Proposed amount |
| Purchase of machinery/equipment |
₹15.41 cr |
| Working-capital requirements |
₹115.00 cr |
| General corporate purposes |
Balance amount |
The company plans to allocate ₹115 crore towards working capital, making it the largest use of IPO proceeds. A comparatively smaller ₹15.41 crore is proposed for machinery and equipment.
The amount earmarked for general corporate purposes will be finalised after the issue price is determined and, according to the RHP, will not exceed 25% of gross proceeds.
What the IPO Use of Funds Means for Investors
The substantial working-capital allocation is understandable for an EPC company because project execution can require significant funding before customer payments are received.
At the same time, the size of this allocation highlights the working-capital intensity of the business.
After listing, investors should monitor:
-
Trade receivables as a percentage of revenue
-
Debtor days
-
Cash generated from operations
-
Working-capital borrowings
-
Customer advances and retention money
-
Whether the new capital reduces borrowing pressure or supports a more leveraged expansion
The relatively modest machinery allocation also indicates that the IPO is primarily designed to strengthen liquidity and support working capital rather than fund a major capacity expansion.
At the upper price band of ₹99 per share, Annu Projects' FY2026 restated EPS is ₹6.91. This implies a P/E multiple of approximately 14.33 times.
At the lower price band of ₹94, the implied P/E is approximately 13.6 times.
Using the FY2026 NAV of ₹32.48 per share, the price-to-book ratio at the upper band is approximately 3.05 times.
| Valuation measure |
Approximate value at ₹99 |
| FY2026 EPS |
₹6.91 |
| FY2026 P/E |
14.33x |
| FY2026 NAV |
₹32.48 |
| Price-to-book |
3.05x |
| Market capitalisation |
Approximately ₹648 cr |
The valuation does not appear excessive when considered alongside the company's recent earnings growth and order book. However, valuation comfort needs to be viewed alongside the company's operating risks.
These include negative operating cash flow in FY2025 and FY2026, rising borrowings, high customer concentration, dependence on government contracts, EPC execution risks and limited revenue diversification.
The P/E multiple also uses historical FY2026 earnings. If margins decline or receivables increase, the effective valuation could be less comfortable than the historical earnings multiple suggests.
Annu Projects has several factors that support its IPO investment case, including strong recent financial performance, a sizeable order book and experience across multiple infrastructure segments.
Below are the key strengths of the Annu Projects IPO:
1. Strong Recent Financial Growth
Revenue increased at approximately 25.16% CAGR between FY2024 and FY2026. PAT also increased from ₹17.39 crore to ₹33.03 crore, while EBITDA rose from ₹28.50 crore to ₹50.19 crore.
The improvement in FY2026 EBITDA and PAT margins further strengthens the recent profitability trend.
2. Large Order Book
The FY2026 order book stood at ₹938.65 crore, representing a book-to-bill ratio of 3.89x.
This provides a meaningful pipeline of projects that could support future revenue, subject to timely execution, customer payments and other project conditions.
3. Experience in Infrastructure Projects
Annu Projects has operated since 2003 and has experience across optical fibre, sewerage, gas pipelines and railway signalling infrastructure.
Its accumulated project experience may support its ability to compete for government and institutional contracts.
4. Multiple Infrastructure Applications
Although telecom and sewerage currently account for more than 90% of revenue, the company also operates in gas pipelines and railway signalling.
Greater contribution from these businesses could potentially reduce dependence on the company's existing core segments over time.
5. Fresh Capital Infusion
The IPO contains no OFS component. The proceeds will therefore be available to Annu Projects for working capital, machinery and general corporate purposes, subject to the stated allocation.
Despite its growth, order-book strength and improving profitability, Annu Projects faces several operational, financial and concentration-related risks. The key risks investors should assess before applying are given below.
1. Very High Customer Concentration
Customer concentration is one of the most significant risks in the Annu Projects IPO.
The top 10 customers contributed 97.96% of revenue from operations in FY2026, compared with 98.25% in FY2025 and 95.90% in FY2024.
Such concentration means that the loss, delay or reduction in business from even one major customer could materially affect revenue and cash flow.
2. Dependence on Government Contracts
Government-sector entities contributed 57.09% of revenue from operations in FY2026, compared with 64.99% in FY2025 and 60.88% in FY2024.
Government contracts can provide scale and visibility, but project awards, approvals, payments and execution can be affected by administrative delays, budgetary changes and policy decisions.
3. Dependence on Telecom and Sewerage
More than 90% of revenue came from telecom and sewerage infrastructure during the relevant periods.
This concentration means that reduced spending, postponed tenders, competitive pressure or changes in project activity in these segments could affect the company's financial performance.
4. Weak Operating Cash Flow
Operating cash flow was negative in FY2025 and slightly negative in FY2026 despite the company reporting profits.
For an EPC business, cash conversion is particularly important. Persistent negative operating cash flow can force a company to rely on additional debt, external capital or extended supplier payment periods.
5. Rising Borrowings
Total borrowings increased from ₹19.69 crore in FY2024 to ₹22.27 crore in FY2025 and ₹52.54 crore in FY2026.
If the company expands its order book without improving cash collections, higher borrowing could increase finance costs and financial risk.
6. Execution and Liquidated-Damages Risk
Annu Projects paid liquidated damages of ₹4.21 crore in FY2024, ₹0.85 crore in FY2025 and ₹0.09 crore in FY2026, according to the RHP figures.
Such penalties can arise from delays or failure to meet contractual specifications and schedules.
The reduction in liquidated damages is positive in isolation, but investors should monitor whether this reflects a sustained improvement in execution or the timing of project completion.
7. Regional Concentration
Bihar, Jharkhand, Goa, West Bengal and Madhya Pradesh together contributed more than 70% of revenue in each of FY2024, FY2025 and FY2026.
This geographical concentration can increase the impact of regional regulatory issues, political changes, extreme weather, payment delays or project disruptions.
8. Supplier Concentration
The top 10 suppliers contributed 67.92% of revenue from operations in FY2026, 69.23% in FY2025 and 72.48% in FY2024.
Dependence on a relatively limited supplier base can create procurement, pricing and project-execution risks.
9. Long Receivable Cycle
Annu Projects has identified a long trade-receivable cycle as a business risk.
Delayed collections can create a mismatch between reported accounting profits and available cash, increasing the company's working-capital requirements.
10. Contingent Liabilities and Litigation
The abridged prospectus discloses tax proceedings, regulatory matters and other outstanding litigation.
The company reported eight tax proceedings and one statutory or regulatory action against it, with an aggregate amount involved of approximately ₹19.77 crore for the disclosed category.
Investors should review the detailed litigation section of the RHP rather than relying only on the summary figures.
Grey-market premium should not be treated as an official measure of IPO quality. GMP is an informal and unregulated indicator that can change rapidly with market sentiment, liquidity, subscription demand and broader market conditions.
As of the available pre-issue reports, subscription data was not yet available because bidding had not started. Some grey-market trackers reported a GMP of ₹0.
A GMP of ₹0 does not automatically make an IPO unattractive, just as a high GMP does not guarantee listing gains.
Investors assessing the Annu Projects IPO should focus on:
-
Valuation relative to sustainable earnings
-
Cash-flow conversion
-
Quality and ageing of receivables
-
Order-book execution
-
Debt levels
-
Customer and segment concentration
-
Post-listing liquidity
The Annu Projects IPO opens on August 25, 2026. Investors should review the final prospectus and monitor key indicators throughout the issue period.
1. Anchor Investor Participation
The anchor allocation is scheduled for August 24, 2026. The quality and commitment of anchor investors can provide useful, although not conclusive, information about institutional interest.
2. Subscription by Category
Strong retail subscription alone should not be treated as a positive signal.
QIB participation can provide more insight into institutional demand, while NII subscription can be influenced by leveraged applications.
3. Receivables and Cash Flow
Investors should compare trade receivables with revenue and track whether operating cash flow improves following the IPO.
Improved cash conversion would be particularly important given the company's recent negative operating cash flow.
4. Debt Reduction
Investors should assess whether the additional working capital reduces borrowing pressure or instead enables the company to pursue a larger and potentially more leveraged order book.
5. Order-Book Execution
The ₹938.65 crore FY2026 order book is a key part of the investment case. Investors should track order-book growth, cancellations, project delays and the rate at which orders are converted into revenue.
6. Customer Concentration
Investors should look for evidence that the company's revenue is becoming less dependent on a small number of customers.
7. EBITDA Margin
The FY2026 EBITDA margin increased to 20.81% from 17.88% in FY2025.
The sustainability of this improvement will be important for assessing the company's future earnings quality and valuation.
The Annu Projects IPO has several positives. The company has a long operating history, reported strong FY2026 revenue and profit growth, improved its EBITDA margin and enters the IPO with a ₹938.65 crore order book.
At the upper price band of ₹99, the IPO is valued at approximately 14.33 times FY2026 earnings. On the face of it, this valuation appears reasonably supported by the company's recent growth and order-book position.
However, the quality of the growth requires closer scrutiny.
Nearly 98% of FY2026 revenue came from the top 10 customers. More than half of revenue came from government-sector entities, while more than 90% was generated from telecom and sewerage infrastructure.
At the same time, borrowings increased sharply to ₹52.54 crore in FY2026, while operating cash flow remained marginally negative.
These factors make Annu Projects more exposed to delayed customer payments, project execution issues, loss of major contracts and working-capital pressure.
For Aggressive Investors
The IPO may be considered for a limited allocation by investors who are comfortable with EPC, government-contract and working-capital risks.
For Conservative Investors
Waiting for post-listing financial results, cash-flow improvement and receivable normalisation may be more appropriate.
For Listing-Gain Investors
The decision should depend on the final subscription pattern, prevailing market conditions and valuation at listing. GMP alone is not sufficient to assess the potential for listing gains.
For Long-Term Investors
The key test will be whether Annu Projects can convert its ₹938.65 crore order book into revenue and cash without a disproportionate increase in debt or customer concentration.
The Annu Projects IPO offers a combination of strong recent growth, improving margins, a sizeable order book and a valuation of approximately 14.3 times FY2026 earnings at the upper price band.
However, it is not a low-risk IPO. Very high customer concentration, dependence on government contracts, concentration in telecom and sewerage, rising borrowings and weak operating cash flow remain important concerns.
The most important factor after the IPO will be cash-flow conversion. Investors should watch whether the company can execute its order book, collect receivables efficiently and fund growth without significantly increasing debt.
Overall, the Annu Projects IPO appears fundamentally interesting but warrants a cautious approach. The growth profile and valuation are supportive, but the company's weak recent cash-flow profile and extreme customer concentration make it more suitable for investors who understand and can tolerate EPC and working-capital risks.
Want to compare Annu Projects with other recent mainboard offerings across infrastructure and EPC sectors? Use this IPO dashboard to track pricing, issue sizes, and listing trends.
1. What is the Lumino Industries IPO?
The Lumino Industries IPO is a ₹700 crore mainboard IPO comprising a ₹500 crore fresh issue and a ₹200 crore offer for sale. The IPO is priced at ₹78 to ₹82 per share and is scheduled to open from August 27 to August 31, 2026.
2. What is the Lumino Industries IPO price band and lot size?
The Lumino Industries IPO price band is ₹78 to ₹82 per share. Investors should check the final issue documents for the applicable lot size and minimum investment amount before applying.
3. What are the key strengths of the Lumino Industries IPO?
The key strengths include Lumino's integrated manufacturing and EPC model, strong revenue and profit growth, a ₹3,149.88 crore order book, proposed debt repayment of ₹337 crore from IPO proceeds and exposure to power transmission, distribution and renewable-energy infrastructure.
4. What are the major risks of the Lumino Industries IPO?
The key risks include working-capital requirements, cash-flow volatility, raw-material price fluctuations, dependence on government and infrastructure projects, EPC execution risks and risks associated with international operations.
5. Should investors apply for the Lumino Industries IPO?
Investors should assess the Lumino Industries IPO based on its valuation, financial performance, order-book execution, debt levels, cash flows and business risks. The company's growth and order book are positives, but investors should also consider working-capital and execution risks before making an investment decision.