Annu Projects IPO raises Rs 175.06 crore before costs

Annu Projects Limited raised Rs 175.06 crore through a fresh-share initial public offering completed before its September 2, 2026 listing, and deducted Rs 19.82 crore of directly attributable issue costs from securities premium. The issue comprised 1,76,83,000 equity shares at Rs 99 each, including Rs 89 of premium per share.

How much did Annu Projects raise through its IPO?

Annu Projects raised gross proceeds of Rs 175.06 crore through its initial public offering, or IPO, of new shares. The company disclosed that the offer comprised 1,76,83,000 equity shares of face value Rs 10 each, issued at Rs 99 per share, aggregating to Rs 175.06 crore.

The Rs 99 issue price included Rs 10 of equity share capital and Rs 89 of share premium for each share. On the disclosed share count, the face-value component was Rs 17.68 crore, while the balance of the issue price represented premium before the deduction of eligible issue costs. The filing does not provide a separate closing balance for securities premium at September 30, 2026.

Annu Projects listed its equity shares on the National Stock Exchange of India Limited and BSE Limited on September 2, 2026. The auditor said the company had not been required to prepare quarterly financial results before listing, so the formal September 2026 quarterly and half-year financial results do not include audited or reviewed corresponding prior-year quarterly comparatives.

The cash-flow statement reports Rs 175.06 crore of proceeds from equity shares during the half year ended September 30, 2026, consistent with the IPO note. It also reports Rs 17.44 crore of share issue expenses paid, Rs 20.41 crore of net borrowing repayment and Rs 2.77 crore of interest paid, resulting in financing cash inflow of Rs 134.26 crore.

Why did Annu Projects deduct IPO costs from securities premium?

Annu Projects deducted Rs 19.82 crore of IPO-related costs from equity, specifically securities premium, because it classified them as costs directly attributable to issuing new equity shares. The company cited paragraph 37 of Indian Accounting Standard 32, Financial Instruments: Presentation, or Ind AS 32, for that accounting treatment.

The filing says the amount represented incremental costs that would not have been incurred had the proposed equity transaction not been planned. Before the IPO was completed, the relevant deferred costs were included in other current assets at March 31, 2026. Once the issue was completed, Annu Projects charged the aggregate costs against the share-issue proceeds through securities premium.

The Rs 19.82 crore amount includes deferred costs at March 31, 2026 and costs incurred during the current financial year. It is therefore Rs 2.38 crore higher than the Rs 17.44 crore described as share issue expenses paid in the half-year cash-flow statement. The filing does not provide a line-by-line reconciliation between the accounting deduction and the cash expense paid figure.

On the disclosed figures, gross proceeds less the Rs 19.82 crore accounting deduction equal Rs 155.24 crore. This is an arithmetic indication of the equity proceeds remaining after the identified issue-cost charge, rather than a separately reported balance. The company reported the costs as a deduction from securities premium, not as an expense in the September quarter's profit and loss statement.

How did the IPO change Annu Projects' balance sheet?

Annu Projects' total equity increased to Rs 312.95 crore at September 30, 2026 from Rs 155.26 crore at March 31, 2026. Equity share capital rose to Rs 65.49 crore from Rs 47.81 crore, while other equity increased to Rs 247.46 crore from Rs 107.45 crore over the same period.

The Rs 17.68 crore increase in equity share capital corresponds to the face value of 1,76,83,000 shares issued at Rs 10 each. The change in total equity was Rs 157.69 crore, which reflects the new issue alongside the period's reported profit, other comprehensive income and the stated deduction of IPO costs from securities premium.

Cash and cash equivalents rose by Rs 20.95 crore from March 31 to September 30, while bank balances other than cash equivalents rose by Rs 82.75 crore. The cash-flow statement recorded Rs 76.52 crore used in investing activities, principally a Rs 77.21 crore movement in other bank balances, showing that not all IPO-related liquidity remained in cash and cash equivalents.

Current borrowings declined to Rs 15.38 crore at September 30 from Rs 38.80 crore at March 31. Non-current borrowings, however, increased to Rs 16.75 crore from Rs 13.74 crore. The financing cash-flow statement separately reports Rs 20.41 crore of net borrowing repayment for the half year ended September 30, 2026.

How did Annu Projects perform in the September quarter?

Annu Projects reported total revenue of Rs 16.54 crore and profit before tax of Rs 1.11 crore for the quarter ended September 30, 2026. Revenue declined from Rs 20.37 crore in the quarter ended June 30, 2026, while profit before tax fell from Rs 2.24 crore in the preceding quarter.

Total expenses decreased to Rs 15.43 crore in the September quarter from Rs 18.13 crore in the June quarter. Profit after tax was Rs 1.01 crore in the September quarter, compared with Rs 1.27 crore in the June quarter, after total tax expense fell to Rs 0.10 crore from Rs 0.97 crore.

For the half year ended September 30, 2026, Annu Projects recorded Rs 36.91 crore of total revenue, Rs 33.55 crore of total expenses and Rs 3.36 crore of profit before tax. Profit after tax for the six months was Rs 2.29 crore. The company identified engineering, procurement and construction, or EPC, as its only reportable segment under Ind AS 108, Operating Segments.

Management also supplied figures from its books for the September 2025 quarter and half year to aid comparison. Those figures showed Rs 3.70 crore of September-quarter revenue and a Rs 3.48 crore loss, while the half year showed Rs 6.51 crore of revenue and a Rs 10.33 crore loss. The company said these prior-period figures were neither audited nor subjected to limited review.

Conclusion

Annu Projects raised Rs 175.06 crore through a fresh IPO and applied Rs 19.82 crore of directly attributable issue costs against securities premium under Ind AS 32. At September 30, 2026, total equity had risen to Rs 312.95 crore from Rs 155.26 crore at March 31, while cash, other bank balances and borrowings also changed materially during the first half.

The next disclosed reference point is the company's financial reporting after the half year ended September 30, 2026. Readers can watch whether EPC revenue develops after the September quarter's Rs 16.54 crore, compared with Rs 20.37 crore in the June quarter, and whether future statements provide further detail on the composition of equity or IPO-related cash deployment.