LCC Projects IPO: Should you subscribe? Check price band, latest GMP, reviews, key risks & more

The initial public offering (IPO) of LCC Projects opens for subscription on Wednesday, September 9. The Rs 427 crore IPO comprises a fresh share sale of Rs 258 crore and an offer-for-sale (OFS) of up to 1.16 crore shares worth Rs 169 crore. Here are the key details of LCC Projects IPO:  

What does LCC Projects do? Incorporated in 2017, Ahmedabad-based LCC Projects is an engineering, procurement and construction (EPC) company focused on irrigation and water supply infrastructure. It undertakes projects involving dams, barrages, canals, pipe distribution networks, lift irrigation and multi-village water supply schemes.

How much LCC Projects raised from anchor investors ahead of its IPO? Ahead of its IPO, LCC Projects raised Rs 128.14 crore from 11 anchor investors as it allocated 87,76,869 shares at Rs 146 apeice. Investors including Astrone Capital VCC, Edelweiss Life Insurance, Craft Emerging Market Fund, Sunrise Investment Trust, ASAS Global Fund, Necta Bloom VCC, Rajasthan Global Securities, LRSD Securities and other participated in the anchor book.  

What are the objectives of fresh share sale in LCC Projects IPO? The company plans to use the net proceeds mainly towards repayment/prepayment of borrowings, purchase of equipment and general corporate purposes.

What is the financial performance of LCC Projects? LCC Projects reported a net profit of Rs 286.44 crore with total income of Rs 3,639.45 crore for FY26. In FY25, it reported a net profit of Rs 223.63 crore and total income of Rs 2,941.01 crore.

What is the valuation demanded by LCC Projects IPO? At the upper end of the price band of Rs 146 per share, LCC Projects commands a post-issue market capitalisation of around Rs 4,229 crore. The IPO is valued at around 14.8 times FY26 earnings.

What is the latest grey market premium (GMP) for LCC Projects IPO? Last heard, LCC Projects IPO was commanding a grey market premium of around Rs 25-27 per share, suggesting a premium of nearly 17-18 per cent over the upper price band. GMP is an unofficial indicator and can change.

When will the allotment for LCC Projects IPO be finalised? LCC Projects IPO will open on September 9 and close on September 11. The basis of allotment is expected to be finalised on September 15, while refunds and credit of shares are likely on September 16. Shares are scheduled to be listed on both NSE and BSE Ltd on September 17.

Who are the leading managers and registrar of LCC Projects IPO? Motilal Oswal Investment Advisors is the sole book-running lead manager, while KFin Technologies Ltd is the registrar of the issue.

What are the key positives for LCC Projects IPO? According to the brokerage firms, strong order book; solid earnings growth; healthy profitability; reasonable valuations; debt reduction plans; and potential for diversification are key positive for the issue.  

What are the key concerns or risk factors for LCC Projects IPO? However, the flag key concerns like dependence on government, high segment concentration, higher debt, order book conversion and geographical/customer concentration remains key risks.

What brokerage firms have to say on LCC Projects IPO? Brokerage firms like Arihant Capital Markets, Anand Rathi Share & Stock Brokers, BP Equities, Swastika Investmart, Ventura Securities are positive on the issue, suggesting to subscribe to it.