Annu Projects IPO opens today: Should you apply or avoid? Check price band, GMP, reviews & more

The initial public offering (IPO) of New Delhi-based Annu Projects, which opens for subscription on Tuesday, August 25, has managed to garner mostly positive views from the brokerage firms led by strong financial and healthy order visibility. However, others have raised concerns on cash flow generation, dependence on government and contracts and customer concentration as key risks for it.

The IPO of Annu Projects is being sold in the range of Rs 94-99 apeice, with a lot size of 151 equity shares. The company is eyeing to raise a total of Rs 175 crore from its maiden stake sale. The IPO is entirely a fresh share sale of 1,76,83,00 equity shares. The issue will conclude for subscription on Friday, August 28.

"Given its faster revenue growth, above-peer profitability on most relevant measures, healthy capital efficiency and strong order visibility, we believe the valuation is reasonable. We recommend a 'subscribe' rating for the issue with a long-term investment horizon," said BP Equities, while recognising the company's working-capital intensity and customer concentration risks.

The net proceeds from the issue shall be utilized towards funding capital expenditure requirements for purchase of machinery or equipment, funding the working capital requirement of the company and general corporate purposes. However, at the current valuations, Annu Projects is commanding a market capitalization slightly below Rs 650 crore.

New Delhi-based Annu Projects is an engineering, procurement, and construction (EPC) company. It is engaged in the design, development, implementation, operations and maintenance of essential overhead and underground utilities infrastructure across telecom infrastructure, sewerage infrastructure vertical and gas pipeline vertical.

Annu Projects is a diversified EPC infrastructure company with a strong execution track record and healthy earnings growth over FY24-26, with revenue, EBITDA and PAT registering a CAGR of 25 per cent, 33 per cent and 38 per cent, respectively. The issue is valued at a P/E multiple of 19.6 times FY26 earnings on a post-issue basis, which appears in-line with peers, said SBI Securities.

"However, high customer concentration, dependence on government contracts and a stretched working capital cycle raise concerns around the quality and durability of earnings. We therefore assign a 'neutral' rating to the IPO and would prefer to monitor cash-flow generation and execution consistency post listing," it added.

The company has not raised any funds from the anchor investor and it has reserved only 10 per cent equity shares for qualified institutional (QIBs) bidders. The company has reserved 40 per cent shares for non-institutional equities (NIIs), while remaining 50 per cent shares are reserved for retail investors.

Annu Projects, at an implied P/E of 19.6 times on FY2026 earnings at the upper price band, said Anand Rathi Share & Stock Brokers. "However, the IPO valuation appears fully priced at the upper band and hence, we recommend a 'subscribe for long term' rating to the IPO," it added.

For the financial year ended on March 31, 2026, Annu Projects reported a net profit at Rs 33.03 crore, with a revenue of Rs 244.59 crore. The company clocked net profit of Rs 21.10 crore, with an income of Rs 182.35 crore for the financial year 2024-25. For FY26, its RoE stood at 21.27 per cent, while RoCE stood at 22.66 per cent. Its EBITDA margins stood at 20.8 per cent for the year.

Operating capabilities are anchored by in-house design and equipment-backed execution. It maintains its own fleet of over 558 machines, reducing reliance on third-party suppliers and enabling the simultaneous execution of complex utility projects. Strategic growth focuses on executing its unexecuted order book, scaling the railway signalling vertical, and deploying  proceeds to purchase machinery, said Ventura with a 'subscribe' rating.

Ahead of its IPO, Annu Projects was commanding a muted grey market premium (GMP) of Rs 2-4 apeice, suggesting a listing gain of 2-4 per cent for the investors. Mefcom Capital Markets is the sole book running lead manager of the IPO of Annu Projects while Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, September 02.