A telecom-and-sewerage EPC contractor opens its Rs 175 crore mainboard issue on August 25 — a Rs 938.65 crore order book at 3.9x FY26 revenue, a 20.81% EBITDA margin, BharatNet and Digital India credentials
Annu Projects Ltd, a civil-contracting specialist in telecom and sewerage infrastructure, opens for subscription on August 25 with the issue closing on August 28.
The company is an infrastructure construction company primarily engaged in civil contracting, spanning the design, development, implementation, operation and maintenance of utility infrastructure. Its core revenue comes from two verticals — telecommunication infrastructure and sewerage infrastructure — with a smaller contribution from gas pipelines and a recent expansion into railway signalling.
The work itself is the underground and overhead plumbing of a modernising economy. On the telecom side, projects include laying optical fibre cables for telecom networks, alongside FTTH, GPON and networking solutions; on the sewerage side, the construction and management of sewerage pipelines and treatment plants. Revenue is generated mainly from rendering civil-contracting services, with a smaller slice from the sale of traded goods.
The company positions itself as an established player with a track record of executing large-scale projects and long-standing relationships with major clients including BSNL and G R Infraprojects. It flags itself as a key partner in national initiatives like BharatNet and Digital India — the government’s flagship rural-connectivity and digital-infrastructure programmes — which anchor the telecom order pipeline.
The forward visibility is the strongest part of the pitch. The order book stands at Rs 938.65 crore, around 3.9x FY26 revenue, and management points to total visibility of nearly Rs 1,959 crore including ongoing projects. That book-to-bill ratio gives the near-term revenue trajectory a reasonable degree of cover.
Strategically, the company is targeting new geographies across India, leveraging its execution competencies to expand into adjacent infrastructure verticals, focusing on cost-efficient project execution, and building out its base of mechanised equipment. The promoters are Sanjay Kumar Sarraf and Krishna Ranjan.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 25, 2026 |
| Issue Closes | August 28, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 2, 2026 |
| Price Band | Rs 94 – Rs 99 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 175 crore |
| Fresh Issue | Rs 175 crore (1,76,83,000 shares, entirely fresh) |
| Offer for Sale | Nil |
| Lot Size | 151 shares |
| Min. Retail Investment | Rs 14,949 |
| Market Cap (Pre-IPO) | Rs 648.38 crore |
| QIB / NII / Retail | 10% / 40% / 50% |
| Lead Manager | Mefcom Capital Markets Ltd. |
| Registrar | KFin Technologies Ltd. |
The issue is entirely a fresh issue with no offer-for-sale component. Proceeds are earmarked for funding capital expenditure on machinery and equipment, funding working capital requirements, and general corporate purposes.
Price Band Analysis
At the upper price band of Rs 99, the issue is valued at a post-IPO P/E of around 19.6x, which sits below listed peers such as EMS (~24.6x) and Likhitha Infrastructure (~23.2x). On pre-IPO earnings, the P/E works out to about 14.33x, with a NAV of Rs 32.48 and RoNW of 21.27%. The valuation is positioned as reasonable relative to the peer set, supported by the company’s profitability and order-book visibility.
GMP Watch
The Annu Projects IPO GMP made a high of ₹4 on August 23 and a low of ₹0 on August 25. As of the opening, the shares were trading at par in the grey market. As always, treat GMP as one unofficial, unregulated, unendorsed data point rather than a listing forecast.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 153.98 | 180.06 | 241.24 |
| EBITDA Margin (%) | 18.51 | 17.88 | 20.81 |
| Net Profit | 17.39 | 21.10 | 33.03 |
| Net Worth | 68.93 | 122.06 | 155.26 |
| Equity Share Capital | 2.67 | 47.81 | 47.81 |
Revenue from operations grew from Rs 153.98 crore in FY24 to Rs 241.24 crore in FY26, with the FY26 jump of around 34% the sharpest of the three years. Net profit rose in step, from Rs 17.39 crore to Rs 33.03 crore, a roughly 56% increase between FY25 and FY26, while the EBITDA margin firmed to 20.81% in FY26 from 17.88% a year earlier.
The company reported an FY26 RoCE of 22.66% and RoE of 21.27%, both strong for an EPC contractor. The one clear soft spot is cash generation: operating cash flow has remained weak, weighed down by higher working-capital requirements and delayed receivables, a recurring feature of government-heavy infrastructure contracting.
Peer Comparison
| Company | EPS (Rs) | P/E | NAV (Rs) | Revenue (Rs cr) | RoNW (%) |
|---|---|---|---|---|---|
| Annu Projects | 6.91 | 14.33 | 32.48 | 241.24 | 21.27 |
| Likhitha Infrastructure | 9.94 | 23.17 | 104.47 | 456.73 | 9.37 |
| Bondada Engineering | 18.28 | 16.60 | 62.35 | 2,842.80 | 28.82 |
| EMS | 16.30 | 24.65 | 190.03 | 732.74 | 8.62 |
| Suyog Telematics | 54.70 | 16.11 | 42.50 | 221.85 | 12.88 |
On a pre-IPO basis, Annu’s 14.33x P/E is the lowest in the comparison set, and its 21.27% RoNW sits at the higher end — a combination that gives the pricing some cover, though the peers differ meaningfully in scale and vertical mix.
Swastika Investmart rates the issue Subscribe, framing it as strong profitability at a reasonable valuation and one that long-term investors can consider while keeping a close eye on customer concentration and cash-flow risks.
Risks to Consider
Customer concentration is the headline risk. The top 10 customers account for nearly 98% of revenue, making the business heavily reliant on a limited number of major clients. Government entities alone contributed 57.09% of revenue, so a spending shift, project delay or administrative issue at a major customer could hit revenue and cash flow disproportionately.
Sector concentration compounds it. Over 90% of revenue is dependent on the telecom and sewerage sectors, leaving the business exposed to any slowdown, policy change or budget shift in those two segments specifically.
Geographic concentration is meaningful — more than 70% of revenue comes from just five states, adding a regional layer of risk on top of the sector and customer concentration.
Cash-flow quality is a genuine concern. The company can report profits without collecting the cash quickly: it had around Rs 156.77 crore of outstanding trade receivables as of March 31, 2026, with an average collection period of roughly 237 days, and operating cash flow was negative in FY26. A large slice of earned revenue stays locked with customers for months.