Annu Projects' initial public offering opens today, August 25, with the company seeking to raise Rs 175 crore. The price band is set at Rs 94-99 per share. While the company reports steady revenue and profit growth, potential investors may weigh these against risks related to high client concentration and significant working capital requirements.
Annu Projects, a firm specializing in utility infrastructure such as underground and overhead networks, has launched its Initial Public Offering (IPO) today, August 25, 2026. The subscription window for the public issue remains open until August 28, 2026. The company is aiming to raise Rs 175.06 crore through a fresh issue of approximately 1.77 crore equity shares. The price band for the IPO has been fixed between Rs 94 and Rs 99 per share, with a minimum investment lot size of 151 shares required for retail investors.
The company has reported a period of growth leading up to this IPO. In the financial year ending 2026, Annu Projects posted revenue from operations of Rs 241.25 crore, with a profit after tax of Rs 33.03 crore. The company maintains an EBITDA margin of 20.81%, reflecting its current operational efficiency in the infrastructure sector. The primary objective of this public issue is to support these operations, with Rs 115 crore allocated for working capital needs and Rs 15.41 crore designated for the purchase of machinery and equipment.
Investors looking at this opportunity may consider the company's reliance on a narrow base of clients and sectors. Over 90% of the company's revenue is derived from just two areas: telecom and sewerage infrastructure. Furthermore, dependence on government entities is high, with these clients contributing approximately 57% of total revenue in FY26. The top 10 clients alone account for about 97.96% of the company’s revenue. This high concentration means the company’s financial health is closely tied to the policies, budgets, and payment timelines of a small group of customers.
Another significant aspect of the company's balance sheet is its intensive working capital requirement. The business is characterized by long payment cycles, with receivable days reaching 237 in FY26. This indicates that the company often waits a substantial period to collect payments after completing project work, which can put pressure on cash flow. In recent periods, this has resulted in negative operating cash flow. While the fresh capital from the IPO is intended to address these working capital needs, the long-term impact on liquidity will depend on how efficiently the company manages its payment collection process and project execution.
The IPO is tentatively scheduled to list on the BSE and NSE on September 2, 2026. As with many infrastructure and engineering companies, the stock's future performance will likely depend on the company's ability to diversify its client base, manage project execution timelines, and improve its cash flow generation in a competitive, tender-driven market.