LCC Projects starts IPO with 100% promoter-group ownership

LCC Projects starts its IPO with all 27.20 crore pre-offer equity shares held by eight promoter and promoter-group shareholders. The three promoters hold a stated 82% of equity capital, while five other promoter-group members hold 18%; LCC Projects reports no public, non-promoter non-public or employee-trust shareholding before the offer.

Who owns LCC Projects before the IPO?

LCC Projects is wholly owned by its promoters and promoter group before the IPO. Its shareholding pattern lists eight shareholders holding 27.20 crore fully paid equity shares of face value Rs 5 each, representing 100% of voting rights and 100% of pre-offer equity capital. The public category, non-promoter non-public category and employee-trust category each show nil holdings.

The ownership is concentrated in two principal promoters. Arjan Suja Rabari holds 11.15 crore shares, or 41%, and Laljibhai Arjanbhai Ahir holds another 11.15 crore shares, or 41%. Maya Arjan Rabari is the third promoter and holds eight shares, classified as negligible; aggregate promoter holding is 22.30 crore shares, or 82%.

The remaining 4.90 crore shares, or 18%, are held by promoter-group members rather than outside shareholders. Sejubben Arjanbhai Rabari and Geeta Lali Ahir each hold 2.45 crore shares, or 9% apiece. Mansi Arjan Rabari, Meet Lali Ahir and Kanchi Lali Ahir each hold eight shares, which are individually negligible but account for 24 shares outside the four major holders and Maya Arjan Rabari.

How concentrated is LCC Projects IPO ownership?

LCC Projects IPO ownership is concentrated in four holders with at least 1% of capital. Arjan Suja Rabari and Laljibhai Arjanbhai Ahir each hold 41%, while Sejubben Arjanbhai Rabari and Geeta Lali Ahir each hold 9%. Together, those four shareholders hold 27.20 crore shares, shown as 100% in the major-shareholder table.

The major-shareholder table rounds the four holders' position to 100% because the remaining 32 shares are held in eight-share lots by Maya Arjan Rabari, Mansi Arjan Rabari, Meet Lali Ahir and Kanchi Lali Ahir. The shareholding-pattern table nonetheless records all eight shareholders and a total of 27.20 crore shares as of the red herring prospectus date.

The concentration was unchanged across the most recent disclosed checkpoints. The table of holders with at least 1% shows the same four holders, share counts and stated percentages as of the red herring prospectus date, 10 days before that date and one year before that date. Arjan Suja Rabari and Laljibhai Arjanbhai Ahir remained at 41% each, while Sejubben Arjanbhai Rabari and Geeta Lali Ahir remained at 9% each.

The longer comparison shows that LCC Projects' capital base increased eightfold over two years, from 3.40 crore shares to 27.20 crore shares. Two years before the red herring prospectus, Arjan Suja Rabari and Laljibhai Arjanbhai Ahir each held 41%, Geeta Lali Ahir held 9%, Sejubben Arjanbhai Rabari held 5%, and Deva Suja Rabari held 4%; the supplied disclosure does not detail every intervening ownership change.

How were recent LCC Projects shares acquired?

LCC Projects discloses nil-cost acquisitions by promoters and promoter-group members in the three years before the red herring prospectus. The prospectus identifies bonus issues and gifts in its acquisition disclosures. A bonus issue is an allotment of additional shares without payment, while a gift transfers shares without consideration.

Arjan Suja Rabari acquired 13.60 lakh shares on September 27, 2024 and 81.60 lakh shares on February 16, 2025, both at nil cost. Laljibhai Arjanbhai Ahir acquired 8.36 crore shares on February 16, 2025 at nil cost. Maya Arjan Rabari acquired one share on September 27, 2024 and six shares on February 16, 2025, also at nil cost.

The cost of recent transactions differs from the average cost of the entire current holding. The weighted average cost for all shares held is Rs 0.67 per share for Arjan Suja Rabari and Rs 0.70 per share for Laljibhai Arjanbhai Ahir, adjusted for the share split and bonus issue. LCC Projects reports nil weighted-average acquisition cost for promoter shares acquired in the last one year and in the last three years.

What restrictions apply to LCC Projects pre-offer shares?

LCC Projects states that its entire pre-offer equity share capital will generally be locked in for six months from allotment under the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, known as the SEBI ICDR Regulations. Promoters' contribution and promoter holdings above that contribution are subject to the separate lock-in provisions cited in Regulations 16 and 17.

The SEBI ICDR Regulations allow transfers of locked-in promoter shares among promoters, promoter-group members or a new promoter, but the lock-in continues with the transferee for the unexpired period. Locked-in promoter shares may be pledged only as collateral for transaction loans from specified scheduled commercial banks, public financial institutions, systemically important non-banking financial companies or deposit-taking housing finance companies. An invoked pledge does not end the lock-in.

LCC Projects also reports no purchases, acquisitions or sales of its equity shares or specified securities by promoters, promoter-group members, directors or their relatives in the six months immediately before filing the red herring prospectus. It reports no financing arrangements in that six-month period through which those persons funded another person's purchase of LCC Projects securities, and no buy-back arrangement involving LCC Projects, its directors or the book running lead manager.

What could change after the LCC Projects IPO?

LCC Projects' post-offer ownership percentages were not populated in the red herring prospectus table, so final dilution cannot be calculated from this disclosure. The offer includes a fresh issue and an offer for sale. Only promoter selling shareholders will receive proceeds to the extent of their participation in the offer for sale, while LCC Projects will not receive those proceeds.

LCC Projects states that there are no outstanding warrants, convertible securities, options or rights to convert debentures, loans or other instruments into equity shares as of the red herring prospectus date. All existing equity shares are fully paid and held in dematerialised form, meaning electronic form. The company also reports no shareholder with a right to nominate directors or other special rights.

Conclusion

LCC Projects begins the offer from a fully promoter-controlled ownership structure: its promoter group holds all 27.20 crore pre-offer shares, and the promoter category holds 82%. The absence of public holders means the offer is the disclosed route through which public shareholding can arise, while the pre-offer share base expanded from 3.40 crore shares two years earlier to 27.20 crore shares.

The next point to watch is the final prospectus, which LCC Projects says will update post-offer holdings for any transfers by existing shareholders before that stage. LCC Projects also states that, apart from shares allotted in the fresh issue, it does not propose a split, consolidation, preferential issue, bonus issue, rights issue or further public offer for six months from the bid or offer opening date.