Annu Projects Limited will launch its Rs 175.06 crore initial public offering (IPO) on August 25, 2026. The price band is fixed at Rs 94–99 per share. The company, which specializes in infrastructure projects like fibre optics and pipelines, aims to use the funds to strengthen its working capital as it manages an order book exceeding Rs 1,000 crore.
Annu Projects Limited, an engineering, procurement, and construction (EPC) company, is set to enter the public markets with an initial public offering (IPO) opening for subscription on August 25, 2026. The offering will remain open for investors until August 28, 2026, with the shares expected to be listed on the BSE and NSE on September 2, 2026.
The company has set a price band of Rs 94 to Rs 99 per equity share. Investors can bid for a minimum of 151 shares in one lot, bringing the minimum application amount for retail investors to Rs 14,949 at the upper end of the price band. The Rs 175.06 crore issue is entirely a fresh offering of shares, meaning all proceeds will go directly to the company rather than to existing shareholders.
Order Book and Financial Context
Annu Projects handles infrastructure tasks across various sectors, including telecom fibre optics, sewerage systems, gas pipelines, and railway signaling. For the fiscal year ended March 2026, the firm reported revenue of Rs 241.24 crore and a profit after tax of Rs 33.02 crore.
A key metric for investors in the EPC sector is the order book, which represents the total value of contracts the company has secured but not yet completed. As of June 30, 2026, Annu Projects reported an order book of Rs 1,005.05 crore. This provides visibility into the company's potential revenue over the coming quarters as it works to execute these projects.
Use of Proceeds
The company plans to use the majority of the money raised—approximately Rs 115 crore—to manage its working capital requirements. In the EPC business, companies often face a time gap between starting a project and receiving payments from clients. Using funds for working capital helps ensure that day-to-day operations, such as purchasing materials and paying for labor, continue smoothly.
An additional Rs 15 crore will be spent on buying new machinery and equipment to support project execution, while the remaining funds are earmarked for general corporate purposes.
Risks and Monitorables
While the company has a significant order book, investors should be aware of the inherent risks in the EPC sector. One major challenge is the dependency on government or public sector clients. If payments from these clients are delayed, it can create cash flow pressure, requiring the company to rely on debt or its working capital reserves.
Additionally, EPC projects operate on thin profit margins. Fluctuations in the prices of raw materials—such as steel, cement, or specialized equipment—can directly impact profitability if the company cannot pass these costs on to the client through price adjustments in their contracts. Furthermore, the company’s revenue is concentrated in specific sectors like telecom and sewerage, meaning any regulatory changes or a slowdown in these industries could affect future growth.
Investors planning to participate in the IPO may want to track the company's ability to maintain its project execution timelines and effectively manage its receivables in the coming quarters.