| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹94 to ₹99 | 151 | 25th Aug, 2026 – 28th Aug, 2026 | ₹175 Cr |
Annu Projects Ltd
Annu Projects Limited (APL) is an integrated Engineering, Procurement and Construction (EPC) and Operations & Maintenance (O&M) company focused on utility infrastructure. Incorporated in 2003, APL is promoted by Sanjay Kumar Sarraf and Krishna Ranjan, who have over two decades of experience in the infrastructure sector. The company primarily executes projects for Central and State Government entities, either directly through competitive bidding or as a sub-contractor to private companies executing government projects. Government-sector entities contributed 57.1% of FY26 revenue, with the balance coming from non-government customers. APL’s business is concentrated in sewerage and telecom infrastructure, which together contributed over 94% of FY26 revenue. Sewerage accounted for 52.7%, covering pipe laying, sewage treatment plants, pumping stations and household connections. Telecom contributed 41.5% and represents the company’s historical core business, covering optical fibre networks, telecom towers and O&M services. Gas pipeline infrastructure contributed 4.03%, primarily comprising MDPE (Medium Density Polyethylen) and GI (Galvanized Iron) pipeline installation and domestic gas connections. The company has capabilities spanning surveying, design, procurement, construction, installation and maintenance, across both overhead and underground utility infrastructure. Geographically, APL has a strong presence across eastern and central India, with Bihar, Jharkhand, West Bengal, Madhya Pradesh and Goa together contributing over 70% of revenue, while its broader project footprint extends to regions including Sikkim, Odisha, Kerala and the Andaman & Nicobar Islands.
Objective of Annu Projects Ltd
- The Offer comprises entirely a fresh issue of Rs. 175 crores. The company proposes to utilise the net proceeds from the fresh issue towards:
- Funding capital expenditure requirements of company for purchase of machinery or equipment;
- Funding working capital requirements of the company; and
- General corporate purposes.
Rationale To Annu Projects Ltd
Investment Rationale
Integrated execution model supports better control over project execution and costs
APL has developed a strong in-house execution platform through more than two decades of experience across utility infrastructure. The company has completed 362 projects to date, building capabilities across surveying, design, procurement, construction, installation and maintenance rather than relying solely on subcontracted execution. This experience is supported by an owned fleet of more than 558 machines and equipment, including horizontal directional drilling machines, excavators, splicing machines, Digitrak systems and OTDR machines. Owning key equipment reduces dependence on third-party rentals and availability, allowing APL to mobilise machinery across sites and maintain greater control over project timelines and costs. The company also has arrangements with local workshops near project locations for faster maintenance and lower equipment downtime. The benefits of this model are reflected in improving profitability, with EBITDA margin increasing from 18.5% in FY24 to 20.8% in FY26, while PAT margin increased from 11.3% to 13.7% over the same period. APL’s operating processes are further supported by required ISO certifications covering quality management and occupational health and safety. The company is also allocating Rs. 15.4 crores of IPO proceeds towards additional machinery, which should further increase its mechanised execution capability and reduce dependence on external equipment as it takes on larger and more complex projects. This combination of execution experience, owned equipment and in-house capabilities provides APL with greater control over project delivery while supporting operating efficiency.
Large order pipeline provides visibility while new segments and geographies expand the growth opportunity
APL has built a sizeable order pipeline relative to its current scale of operations, with an outstanding order book of Rs. 1,005 crores as of June 30, 2026, equivalent to 4.2x FY26 revenue. The telecom segment accounts for 82.9% of the order book, with the key driver being the Rs. 919 crore BharatNet Phase III sub-contract in Kerala. Beyond providing substantial revenue visibility, the project marks APL’s expansion into South India and gives it an opportunity to deploy its established telecom capabilities in a new geography. The company is also pursuing regional project clusters and local partnerships to participate more effectively in state-level tenders and gradually expand beyond its traditional markets. APL is simultaneously broadening its addressable market through its entry into railway signalling, telecom and safety systems, including Kavach. Its first railway project, awarded by Eastern Railway in June 2026, provides an initial entry into a new infrastructure segment while remaining closely aligned with APL’s existing telecom and OFC capabilities. This makes the diversification more logical than entering an unrelated business, as the company can leverage its existing technical expertise and execution experience. The combination of a large executable order pipeline, entry into new geographies and expansion into adjacent infrastructure segments provides multiple avenues for growth beyond APL’s existing sewerage and telecom base.
Valuation of Annu Projects Ltd
Annu Projects Limited (APL) is an EPC and O&M player focused on essential utility infrastructure, with its business primarily driven by the telecom and sewerage segments, which together account for over 94% of FY26 revenue. The company also has an established presence in gas pipelines and is expanding into railway signalling, giving it exposure to multiple infrastructure spending themes. APL has delivered healthy growth in both scale and profitability, with revenue from operations growing at a 25.2% CAGR during FY24-FY26 and PAT growing at a 37.8% CAGR. EBITDA margin improved from 18.5% in FY24 to 20.8% in FY26, while PAT margin increased from 11.3% to 13.7%, supported by higher contribution from EPC execution and improving operating efficiency. APL’s profitability compares favourably with the peer group. Its 20.8% EBITDA margin is well above the 14.5% average of the comparable EPC peers excluding Suyog Telematics, whose asset-light tower-leasing model results in an unusually high margin. APL’s 13.7% PAT margin is broadly in line with the 14.5% peer average, while its 21.3% RoNW is significantly higher than the peer average of around 14.9%. The company’s 22.7% RoCE also indicates healthy capital efficiency. These metrics suggest that APL’s profitability and capital returns are already competitive despite its smaller operating scale. APL also has stronger revenue visibility relative to most peers, with a 3.9x book-to-bill ratio compared with an average of around 2.5x for Likhitha Infrastructure, Bondada Engineering and EMS. This provides a sizeable executable pipeline relative to the company’s current revenue base. However, the quality of earnings needs to be considered alongside its 237-day receivable cycle, volatile operating cash flows and high customer concentration, which can result in a significant gap between reported profitability and cash generation. At the upper price band of INR 99 per share, APL is valued at 19.64x FY26 post-issue EPS of INR 5.04, broadly in line with the 20x average P/E of its four listed peers. Given its faster revenue growth, above-peer profitability on most relevant measures, healthy capital efficiency and strong order visibility, we believe the valuation is reasonable. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon, while recognising the company’s working-capital intensity and customer concentration risks.
What is the Annu Projects Ltd IPO?
The initial public offer (IPO) of Annu Projects Ltd an early investment opportunity in. A stock market investor can buy Annu Projects Ltd IPO shares by applying in IPO before Annu Projects Ltd shares get listed at the stock exchanges. An investor could invest in Annu Projects Ltd for short term listing gain or a long term.
How to apply for the Annu Projects Ltd IPO through StoxBox?
To apply for the Annu Projects Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Annu Projects Ltd IPO open?
Annu Projects Ltd IPO is opening on 25th Aug 2026. Apply Now
What is the lot size of the Annu Projects Ltd IPO?
The Lot Size of SAnnu Projects Ltd 151 equity shares. Login to your account now.
When is the Annu Projects Ltd IPO allotment date?
The allotment Date for Annu Projects Ltd IPO is 31st Aug 2026. Login to your account now.
When is the Annu Projects Ltd IPO listing date?
The listing Date for Annu Projects Ltd is 2nd Sep 2026. Login to your account now
What is the minimum investment required for the Annu Projects Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,949 Login to your account now
What is the maximum investment allowed for Annu Projects Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,94,337 Login to your account now
What are the risks associated with investing in the Annu Projects Ltd IPO?
- Over 90% of revenue is derived from telecom and sewerage infrastructure, exposing APL to sector-specific demand, government spending and policy changes. Any slowdown in these segments could materially impact revenue and profitability.
- Government entities contributed 57% of FY26 revenue, making APL dependent on government tendering and project awards. Aggressive bidding can pressure margins, while administrative delays, stringent contract terms and changes in government spending can affect project execution and collections.
- The top 10 customers contributed 98% of FY26 revenue, creating significant customer concentration. Loss of a key customer, payment delays, disputes or project cancellations could materially affect revenue and cash flows.
- APL’s order book is subject to execution and project-specific risks and does not guarantee future revenue. Projects may face delays, modifications or cancellations, while execution can depend on timely customer-side approvals such as Right of Way, forest clearances and design approvals.
When will the Annu Projects Ltd IPO shares be credited to my Demat account?
The Annu Projects Ltd will be credited to the account on allotment date which is 31st Aug 2026. Login to your account now
Where can I find the Annu Projects Ltd IPO prospectus?
The prospectus of Annu Projects Ltd IPO prospectus can be found on the website of SEBI, NSE and BSE
