GMP IPO Watch
Annu Projects IPO 2026 – Day 2 Update
Annu Projects Limited's mainboard IPO is currently open for subscription after bidding began on August 25, 2026.
The issue will close on August 28, followed by expected allotment on August 31 and listing on BSE and NSE on September 2, 2026. The company has fixed a price band of ₹94 to ₹99 per share.
A notable feature of the offering is that the entire IPO consists of fresh equity. There is no Offer for Sale, so the capital raised will go to Annu Projects rather than selling shareholders.
Annu Projects IPO Details
| Particular | Details |
|---|---|
| IPO Type | Mainboard IPO |
| Issue Type | Book Built |
| Issue Size | ₹175.06 Crore |
| Fresh Issue | ₹175.06 Crore |
| Offer for Sale | Nil |
| Shares Offered | 1,76,83,000 |
| Price Band | ₹94 – ₹99 |
| Face Value | ₹10 |
| Lot Size | 151 Shares |
| Minimum Investment | ₹14,949 |
| IPO Open Date | August 25, 2026 |
| IPO Close Date | August 28, 2026 |
| Allotment Date | August 31, 2026 |
| Listing Date | September 2, 2026 |
| Listing | BSE & NSE |
| Lead Manager | Mefcom Capital Markets |
| Registrar | KFin Technologies |
At the upper price of ₹99, one retail lot of 151 shares requires an investment of ₹14,949.
Opening-Day Subscription Remained Muted
Annu Projects received a relatively measured response on its first day of bidding.
The IPO received bids for approximately 60.28 lakh shares against 1.77 crore shares offered, translating into an overall subscription of around 0.34 times.
| Category | Day 1 Subscription |
|---|---|
| QIB | 0.57x |
| NII | 0.36x |
| Retail | 0.28x |
| Overall | 0.34x |
The issue still has until August 28 to close, so the final subscription picture could look materially different.
Annu Projects IPO GMP Today
Grey-market activity around Annu Projects remains subdued.
The latest reported update on August 26 indicates a ₹0 GMP, suggesting no unofficial premium over the ₹99 upper issue price at present.
| GMP Particular | Latest Position |
|---|---|
| Upper Issue Price | ₹99 |
| Reported GMP | ₹0 |
| Indicative Price | ₹99 |
| Indicative Premium | 0% |
| Sentiment | Neutral |
GMP is an unofficial indicator and can change before listing. It should not be treated as a guaranteed listing-price forecast.
What Does Annu Projects Do?
Annu Projects is an infrastructure EPC company established in 2003.
Unlike an infrastructure company focused on a single segment, Annu Projects operates across several specialised verticals, including:
telecom infrastructure + sewerage infrastructure + gas pipelines + railway signalling.
Its work includes executing infrastructure projects through direct contracts, subcontracts and project-specific joint ventures or consortium arrangements.
This diversified project portfolio provides exposure to several areas of India's infrastructure development.
Telecom Infrastructure Is an Important Business Vertical
Annu Projects undertakes telecom-infrastructure projects involving fibre-optic networks.
Fibre infrastructure is critical for:
broadband networks + telecom connectivity + mobile-data infrastructure + enterprise connectivity + digital services.
As India's data consumption and digital connectivity requirements increase, continued investment in fibre networks can create opportunities for contractors capable of executing large projects.
However, winning projects is only one part of the business. Timely execution and payment collection are equally important for EPC companies.
Sewerage Projects Provide Urban Infrastructure Exposure
The company also undertakes sewerage infrastructure work.
These projects can involve the development and installation of networks required for wastewater collection and management.
Urbanisation creates continued demand for:
sewerage networks + water infrastructure + sanitation projects + municipal infrastructure.
Government and municipal spending therefore represent an important demand driver for this part of Annu Projects' business.
Gas Pipeline Projects Add Another Growth Vertical
Annu Projects also executes gas-pipeline infrastructure.
Its gas business includes laying MDPE pipelines and GI house connections for domestic and commercial gas distribution.
The operating chain can broadly be understood as:
city gas network → pipeline installation → household/commercial connections → gas distribution.
Expansion of city gas distribution networks can therefore create additional project opportunities for the company.
362 Projects Already Completed
Execution experience is an important factor when evaluating an EPC company.
As of June 30, 2026, Annu Projects had completed 362 projects and was executing another 23 ongoing projects.
| Operating Indicator | Position |
|---|---|
| Projects Completed | 362 |
| Ongoing Projects | 23 |
| Machinery & Equipment | 558+ |
| Permanent Employees | 469 |
| Operating History | Since 2003 |
The company's completed projects span states including Bihar, Jharkhand, Gujarat, Goa, Haryana, Madhya Pradesh, Odisha, Uttar Pradesh, West Bengal and Sikkim, along with Delhi.
This provides evidence of execution experience across multiple geographies.
FY2026 Revenue Crossed ₹240 Crore
Annu Projects recorded strong financial growth over the last three reported financial years.
| Financial Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue | ₹155.42 Cr | ₹182.35 Cr | ₹244.59 Cr |
| EBITDA | ₹28.50 Cr | ₹32.19 Cr | ₹50.19 Cr |
| PAT | ₹17.39 Cr | ₹21.10 Cr | ₹33.03 Cr |
| Net Worth | ₹68.93 Cr | ₹122.06 Cr | ₹155.26 Cr |
| Total Assets | ₹161.34 Cr | ₹233.37 Cr | ₹341.82 Cr |
| Borrowings | ₹19.69 Cr | ₹22.27 Cr | ₹52.54 Cr |
FY2026 revenue increased approximately 34%, while PAT increased roughly 57% from FY2025.
This combination of topline and earnings growth is one of the more notable aspects of the company's recent performance.
Profitability Has Also Improved
The latest offer-document figures indicate healthy operating and return ratios.
| KPI | FY2026 |
|---|---|
| EPS | ₹6.91 |
| ROE | 21.27% |
| ROCE | 22.66% |
| RoNW | 21.27% |
| Debt / Equity | 0.34 |
| EBITDA Margin | 20.81% |
| PAT Margin | 13.69% |
| Pre-Issue P/E | 14.33x |
| Post-Issue P/E | 19.64x |
At the ₹99 upper price, the issue is valued at approximately 14.33 times pre-issue FY2026 earnings and 19.64 times post-issue earnings.
₹115 Crore Will Support Working Capital
The biggest use of IPO proceeds is not machinery or debt repayment—it is working capital.
Annu Projects intends to deploy approximately ₹115 crore toward its working-capital requirements.
Use of IPO Proceeds
| Purpose | Amount |
|---|---|
| Working Capital | ₹115.00 Cr |
| Machinery & Equipment | ₹15.41 Cr |
| General Corporate Purposes | Balance |
| Total Issue | ₹175.06 Cr |
The ₹115 crore allocation represents a substantial portion of the IPO.
For an EPC company, this is particularly relevant because project execution can require significant upfront spending before customer payments are received.
Why Working Capital Matters So Much
Infrastructure contractors can face a long operating cycle.
The company may need to spend money on:
materials + labour + subcontractors + machinery + site expenses
before receiving payment from the project owner.
This creates a cycle such as:
new project → upfront spending → project execution → billing → certification → payment collection.
As the number and size of projects increase, working-capital requirements can rise rapidly.
Fresh IPO capital could therefore allow Annu Projects to execute a larger order pipeline without depending as heavily on additional borrowings.
₹15.41 Crore Planned for Machinery
Another ₹15.41 crore is intended for purchasing machinery and equipment.
Annu Projects already owns more than 558 machines and pieces of equipment, but additional machinery could strengthen execution capabilities as project volumes expand.
Owning equipment can potentially reduce dependence on rented machinery and provide greater control over project schedules.
The benefit, however, depends on utilisation.
New equipment + strong project pipeline = better execution capacity.
But idle equipment can increase depreciation and maintenance costs without generating corresponding revenue.
Borrowings Have Increased Sharply
One financial trend investors should watch is the rise in debt.
Borrowings increased from:
₹19.69 crore in FY2024 → ₹22.27 crore in FY2025 → ₹52.54 crore in FY2026.
That represents a substantial increase during the latest financial year.
Although the reported debt-to-equity ratio remains at around 0.34, the absolute increase in borrowings deserves attention.
The IPO's large working-capital infusion could reduce the need to finance future project growth entirely through additional debt.
IPO Is 100% Fresh Issue
The structure of the Annu Projects IPO is straightforward.
| Component | Amount | Share |
|---|---|---|
| Fresh Issue | ₹175.06 Cr | 100% |
| Offer for Sale | Nil | 0% |
| Total IPO | ₹175.06 Cr | 100% |
There is no OFS, meaning existing shareholders are not selling shares through the IPO.
This means:
IPO investors → fresh capital → Annu Projects → working capital + equipment + corporate requirements.
The effectiveness with which management deploys this capital will be important after listing.
Key Strengths of Annu Projects
Annu Projects has built more than two decades of experience across multiple infrastructure segments.
Its biggest operational strength is diversification across telecom fibre, sewerage, gas pipelines and railway signalling, rather than depending entirely on one infrastructure vertical. The company had completed 362 projects and had 23 ongoing projects as of June 30, 2026.
Financial growth has also been strong. Revenue increased from ₹155.42 crore in FY2024 to ₹244.59 crore in FY2026, while PAT increased from ₹17.39 crore to ₹33.03 crore.
The 100% fresh-issue structure is another notable feature because the entire ₹175.06 crore offering represents new equity rather than shareholder exits.
Major Risks
EPC businesses carry significant execution and cash-flow risks.
Annu Projects needs to manage project timelines, customer collections, labour, raw materials, subcontractors and equipment simultaneously.
Important risks include:
- Delays in project execution
- High working-capital requirements
- Slow customer payments
- Dependence on infrastructure spending
- Rising borrowings
- Cost overruns
- Competitive project bidding
- Customer concentration
- Regulatory and approval delays
- Machinery utilisation
- Project-specific execution risks
The latest ₹0 GMP and relatively muted opening-day subscription also indicate that current market enthusiasm is limited compared with some other ongoing IPOs.
What Investors Should Track After Listing
| Metric | Why It Matters |
|---|---|
| Order Book | Future revenue visibility |
| New Orders | Growth momentum |
| Revenue Growth | Execution scale |
| EBITDA Margin | Project profitability |
| PAT Margin | Earnings quality |
| Receivable Days | Collection efficiency |
| Working Capital | IPO fund utilisation |
| Borrowings | Balance-sheet risk |
| Operating Cash Flow | Cash conversion |
| Project Completion | Execution capability |
| Equipment Utilisation | Capex productivity |
| ROCE | Capital efficiency |
For Annu Projects, order execution and conversion of accounting profits into operating cash flow could be more important than revenue growth alone.
Final View on Annu Projects IPO
The Annu Projects IPO is open from August 25 to August 28, 2026, with a price band of ₹94–₹99. The ₹175.06 crore mainboard offering is a 100% fresh issue of approximately 1.77 crore shares, with listing expected on BSE and NSE on September 2.
The company enters the IPO after a strong FY2026, reporting ₹244.59 crore revenue, ₹50.19 crore EBITDA and ₹33.03 crore PAT.
Its IPO strategy is primarily focused on supporting larger project execution, with ₹115 crore earmarked for working capital and ₹15.41 crore for machinery and equipment.
