Annu Projects

IPO Size: Rs. 175 cr, entirely Fresh Issue  

• for working capital Rs. 115 cr
• and capex Rs. 15 cr

Price band: Rs. 94-99 per share

M cap: Rs. 648 cr, implying 27% dilution

• Allocation: 10% for institutions, 40% for HNIs and 50% retail

IPO Date: Tue 25^th Aug to Fri 28^th Aug 2026, Listing Wed 2^nd Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Telecom and Sewerage EPC Company

Annu Projects is a 23-year-old New Delhi headquartered engineering procurement and construction (EPC) company engaged in laying telecom infra (optic fibre cable), sewerage infra and gas pipeline. FY26 topline of Rs. 241 cr was split 53% from sewerage infra, 42% from telecom infra and balance gas pipeline. As of 30.6.26, order book Rs. 1,005 cr, of which 83% is telecom infra. This represents a healthy book to bill of 4.1x. Company’s book to bill has historically remained at these elevated levels.  

 

Q4 is nearly half of Full Year

Due to nature of business, fourth quarter accounts for nearly half of topline and two-thirds of bottomline. In FY26, PAT stood at Rs. 33 cr, leading to 13.7% net margin and EPS of Rs. 6.90. In the past 5 years, company’s net margins have strengthened significantly, from 3.2% in FY22. On the other hand, listed peers like Likhitha and EMS have witnessed contraction in margin lately. Thus, sustainability of Annu’s margins need monitoring post listing.

 

High Working Capital Business

Since sewerage infra projects are entirely for government customers and telecom verticals also comprises BSNL and Bharat Broadband as clients, company’s working capital need is very high. On FY26 topline, it has Rs. 157 cr working capital as of 31.3.26, implying 8 months cycle of working capital, which is quite stretched. Of this, debtors doubled YoY in FY26 to Rs. 157 cr, as debtors outstanding rose to 237 days as on 31.3.26 as compared to 163 days as on 31.3.25. Thus, nearly 8 months of sales is blocked in receivables. Company estimates a requirement of Rs. 230 cr and Rs. 300 cr working cap for FY27E and FY28E respectively, which is quite large.

 

Fully Priced IPO

Based on expected FY27E EPS of Rs. 6.75 due to a large dilution, the m cap of Rs. 648 cr implies a PE multiple of 14x on current year. Net worth of Rs. 155 cr as of 31.3.26, will more than double to Rs. 330 cr post IPO, with RoE likely to contract from 24% in FY26 to 13-14% going forward. This makes the IPO fully priced for the small topline and stretched receivables cycle, despite a large order book.