Annu Projects IPO 40% Subscribed On Day 2; GMP Signals 4% Listing Gain

The initial public offering (IPO) of Annu Projects, an engineering, procurement and construction (EPC) company, continued to see a subdued response on the second day of bidding, with the issue subscribed 40% as of 11:10 am on August 26, according to NSE data.

The ₹175.06-crore IPO received bids for 68,68,084 shares against 1,76,83,000 shares on offer. Retail investors led the demand, with their portion subscribed 38%, while the non-institutional investor (NII) category was subscribed 37%.

The IPO will remain open for subscription until August 28. The company has fixed the price band at ₹94-99 per share.

IPO Details

Investors can bid for a minimum of 151 shares and in multiples thereafter. At the upper end of the price band, one lot requires an investment of ₹14,949.

Retail investors can apply for up to 13 lots, or 1,963 shares, requiring an investment of ₹1,94,337 at the upper price band.

The issue is entirely a fresh issue of 1,76,83,000 equity shares, with no offer-for-sale component. At the upper price band of ₹99, the company will have a market capitalisation of about ₹648.38 crore.

GMP Signals 4% Listing Gain

In the grey market, Annu Projects shares were commanding a GMP of ₹4, according to InvestorGain.

At the upper end of the IPO price band of ₹99, the premium translates into a potential listing price of around ₹103, indicating a possible listing gain of 4%.

GMP is an unofficial and unregulated market indicator. It can change before listing and does not guarantee the actual listing price or returns.

IPO Proceeds And Allocation

The company has reserved not more than 10% of the issue for qualified institutional buyers, at least 50% for retail investors and at least 40% for non-institutional investors.

Of the net IPO proceeds, around ₹15.41 crore will be used to purchase machinery and equipment, while ₹115 crore has been earmarked for working capital requirements. The remaining funds will be used for general corporate purposes.

Annu Projects faces competition from listed peers including Likhitha Infrastructure, Bondada Engineering, EMS and Suyog Telematics.

Mefcom Capital Markets is the sole book-running lead manager to the issue, while Kfin Technologies is the registrar. The equity shares are proposed to be listed on both the NSE and BSE, with the tentative listing date set for September 2.