Annu Projects

Annu Projects Limited operates across three key infrastructure verticals. In telecom infrastructure, the company surveys, designs, and installs cabling and tower infrastructure for communication, automation, and electronic security systems, serving customers including Bharat Sanchar Nigam Limited, A2Z Infra Engineering Limited, Bharat Broadband Network Limited, and G R Infraprojects Limited. In sewerage infrastructure, it undertakes pipe laying, manhole construction, sewerage treatment plant construction, pumping station construction, and other structural facilities.

Its gas pipeline vertical involves laying MDPE pipelines ranging from 20mm to 125mm in diameter, along with 38,300 GI house connections for domestic and commercial gas supply, serving customers including Indraprastha Gas Limited, Gujarat Gas Limited, and GAIL India Limited. As of June 30, 2026, the company had 23 ongoing projects worth ₹1,959.35 crore, comprising 4 telecom infrastructure projects, 14 sewerage projects, 4 gas pipeline projects, and 1 railway signalling project, reflecting healthy near-term revenue visibility across a diversified project base.

The company's competitive strengths include engineering, procurement, and commissioning capabilities with a special focus on underground and overhead utilities infrastructure, integrated project management and execution capabilities, a strong order book, consistent financial performance, and experienced leadership with a strong management team.

The Annu Projects IPO is a bookbuilt mainboard issue aggregating up to ₹175.06 crore, comprising entirely a fresh issue of shares with no offer-for-sale component. The issue is priced in a band of ₹94 to ₹99 per equity share, with a lot size of 151 shares, and will open on August 25, 2026, closing on August 28, 2026, with listing expected on September 2, 2026 on both the BSE and NSE. Notably, the issue reserves 50% for Retail investors and 40% for NII, with only 10% allocated to QIB — a significantly more retail-heavy structure than the standard mainboard split.

Net proceeds from the fresh issue are earmarked primarily for funding working capital requirements, estimated at ₹115 crore, along with capital expenditure for machinery and equipment worth ₹15.41 crore, with the remainder allocated to general corporate purposes. The company has delivered strong and consistent growth, with total income rising from ₹155.42 crore in FY24 to ₹244.59 crore in FY26, and profit after tax growing from ₹17.39 crore to ₹33.03 crore over the same period.

At the upper price band, the issue is priced at a post-issue P/E of 19.64 times FY26 earnings, with a Return on Net Worth of 21.27% and a Price to Book Value of 3.88 times (FY25 basis), reflecting a reasonably valued issue supported by a healthy and improving return profile. Key strengths cited include diversified EPC capabilities across telecom, sewerage, and gas pipeline infrastructure, a strong and varied order book, and experienced management. Key risks include reliance on government and utility-sector clients, a rising Debt/Equity ratio (0.20 to 0.34 year-over-year), and typical execution risk tied to timely completion of ongoing infrastructure projects. Investors may find it useful to benchmark this issue against other recently listed EPC and utilities infrastructure IPOs when evaluating its relative valuation.