Annu Projects IPO sees 47 percent subscription on day two as retail leads demand
The engineering and construction firm’s initial public offering has recorded modest demand ahead of its final day, testing investor appetite for mid-cap infrastructure valuations.
Annu Projects Limited recorded a 47 percent overall subscription on the second day of its initial public offering, with retail investors driving the modest demand. The offer, which opened on August 25, will close on August 28, 2026.
Retail individual investors subscribed to 51 percent of their reserved 88.41 lakh shares. Qualified institutional buyers followed at 58 percent of their 17.68 lakh share allocation, while non-institutional investors lagged with a 39 percent subscription rate against 70.73 lakh shares on offer.
The company is raising an estimated Rs 130.41 crore through a fresh issue of 1.77 crore shares, priced between Rs 94 and Rs 99 each. A minimum retail bid of 151 shares requires an investment of Rs 14,949 at the upper end of the band.
Grey market indicators currently reflect cautious optimism, with the premium standing at Rs 4 per share. This suggests an estimated listing price of Rs 103, representing a marginal 4 percent premium over the maximum offer price.
Net proceeds will be directed primarily toward working capital requirements, which account for Rs 115.00 crore of the total raise. Another Rs 15.41 crore is earmarked for capital expenditure on machinery and equipment to support ongoing operations.
Annu Projects reported a 34 percent year-on-year revenue increase to Rs 244.59 crore for the fiscal year ended March 31, 2026. Profit after tax grew 56 percent to Rs 33.03 crore, reflecting improved earnings margins alongside a robust order book of Rs 19,593.48 million as of June 30, 2026.
Despite this solid financial trajectory, market analysts warn that the pricing leaves little room for immediate upside. AnandRathi research notes the issue is fully priced at an implied price-to-earnings multiple of 19.6x on fiscal 2026 earnings, recommending a long-term subscribe rating rather than a short-term listing gain play.
Share allotment is scheduled for August 31, with the stock market debut expected on September 2 on both the National Stock Exchange and Bombay Stock Exchange. Investors will monitor final day subscription volumes to gauge true institutional conviction in the mid-cap infrastructure space.
