Engineering, Procurement, and Construction (EPC) firm Annu Projects Limited made a disappointing debut on the domestic stock exchanges on Wednesday. The company's equity shares listed at a steep discount of more than 27 percent against their fixed issue price of Rs 99 per share. The weak listing resulted in immediate losses for primary market investors who were allotted shares during the public offer. The initial public offering had previously secured a modest total subscription of 2.93 times during its bidding window.
Listing Performance across BSE and NSE
On Wednesday morning, shares of Annu Projects Limited commenced trading on the BSE at Rs 75 per share, representing a sharp fall of 24.24 percent compared to the issue price of Rs 99. The stock witnessed an even steeper decline on the National Stock Exchange (NSE), opening at Rs 72 per share, which marked a drop of 27.27 percent from the issue price. At the time of listing, the company's total market capitalization stood at Rs 497.88 crore. The significant opening drop reflected subdued investor sentiment in the secondary market following the conclusion of the IPO allotment process.
Intra-Day Recovery during Trading Hours
Following the weak opening, the stock managed to bounce back slightly from its listing lows during mid-day trading on Wednesday. By 12:31 PM, the stock was trading on the BSE at Rs 76.62 per share, up by 2.16 percent or Rs 1.62 from its listing price of Rs 75. On the NSE, the shares gained 5.00 percent or Rs 3.60 from their opening price of Rs 72, reaching Rs 75.60 per share. Despite this intra-day uptick, the trading price remained significantly below the allotment price of Rs 99, keeping overall investor returns negative.
Timeline, Pricing Structure, and Allotment Details
The initial public offer of Annu Projects Limited was opened for subscription on 25 August. The company had set a price band of Rs 94 to Rs 99 per equity share, with a face value of Rs 10 per share. Shares were ultimately allotted to investors at the upper cap of Rs 99 per share. Under the issue structure, the minimum application size for retail investors was fixed at 151 shares per lot. Following the close of the bidding period on 28 August, share allotment was finalized on 31 August, and the equity shares were credited to the demat accounts of successful applicants on 1 September.
Breakdown of Rs 175 Crore Issue and Capital Deployment
The overall size of the initial public offering was Rs 175 crore, comprising a total of 1,76,83,000 equity shares. The entire transaction was structured as a fresh issue of shares, with no Offer for Sale (OFS) element involved, meaning no existing shareholders or promoters diluted their stakes. Annu Projects Limited has outlined a clear capital deployment plan for the net proceeds raised from the IPO. The company intends to allocate Rs 115 crore from the proceeds to meet its ongoing working capital requirements. Furthermore, Rs 15 crore will be utilized for capital expenditure toward purchasing new machinery and operational equipment, while the remaining balance will be deployed for general corporate purposes to support business operations.
