Annu Projects Shares List at Up to 27% Discount to IPO Price

Annu Projects shares made a weak debut on the stock exchanges on Wednesday and have listed at a discount of up to 27 per cent to the issue price. The stock listed at Rs 75 on the BSE, a discount of 24.24 per cent to the issue price of Rs 99. Meanwhile, on the National Stock Exchange, the stock debuted at Rs 72, down 27.27 per cent from the offer price. In addition, the stock declined as much as 28 per cent in early trading hours, hitting an intraday low of Rs 71.25. The company's initial public offering received bids for 5.18 crore shares against 1.76 crore shares on offer, resulting in an overall subscription of 2.93 times.

The IPO comprised an entirely fresh issue of up to 1.7683 crore equity shares with a face value of Rs 10 each, with no offer-for-sale component. Moreover, the company showed several key risks in its IPO offer document like business concentration in telecom and sewerage segments, which together contributed 94 per cent of FY26 revenue, higher revenue dependence on government clients of up to 65 per cent in FY26, customer concentration in which top 10 customer contribution 98 per cent each in FY25 & FY26.

Annu Projects plans to use Rs 15.408 crore of the net proceeds to fund capital expenditure for the purchase of machinery and equipment, while Rs 115 crore will be used to meet working capital requirements. The remaining proceeds will be used for general corporate purposes. The price band for the issue was fixed at Rs 94-99 per share with investors allowed to bid in lots of 151 shares.

The issue had reserved 10 per cent of the issue for qualified institutional buyers, 40 per cent for non-institutional investors and 50 per cent for retail investors. Established in 2003, Annu Projects is engaged in the design, development, implementation, operations and maintenance of overhead and underground utilities infrastructure across telecom, sewerage, gas pipeline and railway signalling segments.

Disclaimer: “The story has been published from a syndicated news feed. Only the headline and subtitle have been edited by EPN.”