Annu Projects IPO kicks off: Why analysts are split on this EPC infra firm

Annu Projects IPO: The initial public offering (IPO) of Annu Projects has garnered a mixed response from brokerages, while its grey market trend remains tepid. 

 

Annu Projects, an EPC infrastructure company operating across telecom, sewerage, gas pipeline, and railway signalling segments, looks to raise ₹175 crore via its initial share sale. The offer opens for bidding today, August 25, and will close later this week on August 28. 

 

The company has several marquee customers on board in the telecom vertical such as Bharat Sanchar Nigam, A2Z Infra Engineering, Bharat Broadband Network and G R Infraprojects, including participation in projects such as BharatNet. The company is one of the key contractors with Sewerage Infrastructure Development Corporation Limited, Madhya Pradesh Urban Development Company, Bihar Urban Infrastructure Development Corporation, and Jharkhand Urban Infrastructure Development Company for their sewerage scheme. In the gas pipeline vertical, it has worked with Indraprastha Gas, Gujarat Gas, and GAIL (India).

 

 

As of June 30, 2026, the company had 23 ongoing projects with an aggregate order book of ₹1005 crore.

 

Annu Projects IPO Details

Annu Projects IPO is entirely a fresh share sale, with no offer for sale (OFS) component. The funds raised from the offer will be used for funding capital expenditure requirements for purchase of machinery or equipment, working capital requirements and general corporate purposes. 

 

Annu Projects IPO price band is fixed at ₹94 to ₹99 per share. Investors can apply for the offer in lots of 151 shares. 

 

In the offer, 10 per cent of the portion is reserved for qualified institutional buyers (QIBs), 50 per cent for retail investors and 40 per cent for non-institutional investors (NIIs).

 

Shares of the company will list on both BSE and NSE on September 2.

 

Annu Projects IPO GMP was nil so far. 

 

Annu Projects IPO review

Here's what brokerages are recommending:

 

SBI Securities

Annu Projects is a company with a strong execution track record and healthy earnings growth over FY24-26, with revenue/Ebitda/PAT registering a CAGR of 25 per cent/33 per cent/38 per cent, respectively. At the upper price band of Rs 99, the issue is valued at a P/E multiple of 19.6x FY26 earnings on a post-issue basis, which appears in line with peers, said the brokerage. 

 

However, high customer concentration, dependence on government contracts and a stretched working capital cycle raise concerns around the quality and durability of earnings, it added. Therefore, SBI Securities assigned a NEUTRAL rating to the IPO and would prefer to monitor cash-flow generation and execution consistency post-listing.

 

Master Capital

Master Capital said that Annu Projects works across telecom, sewerage, and gas pipeline infrastructure, positioning it as a contractor eligible to bid on these government-funded projects. 

 

"The customer base is concentrated in central and state government entities and public sector undertakings, with the balance from private clients. Its verticals telecom infrastructure, sewerage infrastructure, gas pipeline, and railway signalling provide revenue streams anchored by government-funded infrastructure programmes," it added. 

 

Investors may consider the IPO as a potential long-term investment opportunity, said the brokerage.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.