Annu Projects Limited has officially opened its initial public offering for subscription today, seeking to raise ₹175.06 crore from the primary market. While the infrastructure company has posted impressive revenue and profit growth recently, a closer look at its balance sheet reveals that its borrowings more than doubled in the last financial year.
Decoding the Financials and Debt Increase
The book-built issue, which closes on Friday, August 28, consists entirely of a fresh issue of 1.77 crore equity shares. The company will not have an offer-for-sale component, meaning all proceeds go directly to the business rather than existing promoters. The price band is set between ₹94 and ₹99 per share. Retail investors must bid for a minimum of one lot comprising 151 shares, requiring a base investment of ₹14,949 at the upper band.
For those analyzing the company’s financials, the growth trajectory looks robust on the surface. Annu Projects reported a total revenue of ₹241.25 crore for the financial year 2026, up significantly from ₹180.07 crore the previous year. Profit after tax also jumped to ₹33.03 crore from ₹21.10 crore. However, prospective bidders should note a specific detail in the red herring prospectus: total borrowing spiked to ₹52.54 crore in FY26, a steep increase from ₹22.27 crore in FY25.
Infrastructure Focus and Proceeds Allocation
The company is primarily involved in civil construction, with its revenue for FY26 dominated by two main segments. Sewerage infrastructure projects brought in nearly 53% of the revenue, while telecom infrastructure accounted for roughly 41%. Management plans to use ₹115 crore of the IPO proceeds to fund working capital requirements, while about ₹15.41 crore will be allocated toward the purchase of machinery and equipment.
Unofficial Market Sentiment and Key Dates
Market observers are keeping a close eye on early bidding interest, especially since the initial momentum in the unlisted market appears subdued. As of today, unofficial and unverified market chatter indicates a grey market premium of ₹4 per share. This translates to a marginal potential premium of about 4% over the issue price. Such premiums are highly volatile and provide only a speculative gauge of early sentiment, rather than a reliable forecast for listing performance.
Retail investors receive a generous 50% quota in this issue, while 40% is reserved for non-institutional investors and the remaining 10% for qualified institutional buyers. The allotment of shares is tentatively scheduled to be finalized on Monday, August 31, with refunds initiated for unsuccessful bidders on the same day. Successful applicants can expect the shares to be credited to their demat accounts by Tuesday, September 1, paving the way for the stock to debut on both the BSE and NSE on Wednesday, September 2.
Conclusion
With its strong footprint in the sewerage and telecom infrastructure sectors, Annu Projects brings a clear operational focus to the public market. Investors will now weigh its expanding debt levels against its solid profit margins as the subscription window progresses over the coming days.