LCC Projects plans to tap capital markets, files IPO papers with fresh issue of Rs 320 crore

LCC Projects IPO

Gujarat-based EPC company LCC Projects has decided to tap capital markets for fund raising via initial public offering as it has filed draft red herring prospectus with the SEBI on February 21.

As per the draft papers, the IPO will be a combination of fresh issuance of equity shares worth Rs 320 crore, and an offer-for-sale of 2.29 crore equity shares by promoters.

Promoters Arjan Suja Rabari, and Laljibhai Arjanbhai Ahir will be selling 1.14 crore equity shares each via offer-for-sale.

The infrastructure may consider raising Rs 64 crore in pre-IPO round. If it manages to raise funds via pre-IPO placement, the said amount will be reduced from the fresh issue component.

In the last two decades, the Ahmedabad-headquartered company has executed several projects in the irrigation and water supply segment such as construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, and water supply schemes.

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As of September 2024, its order book included 68 projects worth Rs 7,347.4 crore, increasing from Rs 6,269 crore as of March 2024.

Its financial performance remained strong in the past years with revenue growing at a CAGR of 76.73 percent and profit 85.81 percent during FY22-FY24 to 2,438.9 crore and Rs 122 crore in FY24. EBITDA (earnings before interest, tax, depreciation and amortisation) increased at a CAGR of 67.26 percent in the same period to Rs 241.4 crore in FY24.

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Motilal Oswal Investment Advisors is appointed as the sole merchant banker for the issue.