IPO Details
Issue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of LCC Projects Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About LCC Projects Ltd IPO
The IPO of LCC Projects Ltd comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹320 crores while the offer for sale is up to 22,940,000 equity shares of face value of ₹5 each.
Objectives of LCC Projects Ltd
- Purchase of equipment
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
- General corporate purposes
LCC Projects Ltd Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹320 crores |
Offer for Sale | Up to 22,940,000 equity shares |
EPS in ₹ for FY 24 | 4.48 |
LCC Projects Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors | Not less than 15% of the net offer |
Retail Individual Investors | Not less than 35% of the net offer |
Industry Outlook
Agriculture and allied activities form an integral part of the Indian economy and currently, ~18% of India’s GVA is contributed by this sector. India, possessing ~4% of the world’s water resources supports a population of 1.4 billion. Limited water resources for agricultural activities, coupled with erratic monsoons and change in weather patterns, intensifies the need for efficient irrigation practices so as to ensure reduction of water stress in the country.
The irrigation sector of India is projected to achieve healthy growth with a forecasted CAGR of 10.9% expected during FY2023-28.
Company Information
LCC Projects Ltd is one of the leading multidisciplinary engineering, procurement and construction (“EPC”) companies in India, in terms of market share, in the irrigation and water supply projects segment, as of six months period ended September 30, 2024.
Over a period of two decades, it has executed a wide range of projects in the irrigation and water supply segment such as construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, water supply schemes, and other EPC projects.
Strengths of LCC Projects Ltd
One of the leading multidisciplinary EPC companies in India for irrigation and water supply projects
The company is one of the leading multidisciplinary EPC companies in India, in terms of market share, in the irrigation and water supply projects segment, as of six months period ended September 30, 2024. It focuses on complex projects and has a strong track record in successful project management, execution and timely completion of irrigation and water supply projects across India, with a majority of our projects being executed ahead of or on schedule.
Strong Order Book and Diversified Portfolio
The company’s order book has grown from ₹1962.489 crores as of March 31, 2022, to ₹ 4384.200 crores as of March 31, 2023, to ₹6268.968 crores as of March 31, 2024, and to ₹73,47.424 crores as of September 30, 2024.
In-house project designing capabilities with robust technical knowledge
LCC Projects Ltd has qualified in-house teams who are responsible for different aspects of its projects starting from identifying prospective projects to the operation and maintenance of the projects.
Our integrated structure also allows the company to control its budget and maximise returns for the project, including the operation and maintenance margins. The company has an in-house design and engineering team comprising 496 qualified engineers and technical personnel as on September 30, 2024, all of whom are trained in construction management and designing.
Risks of LCC Projects Ltd IPO
-
Dependence on state and central government: LCC Projects Ltd is an infrastructure company operating primarily in the irrigation and water supply projects segment and its business significantly (88.81% for the six months period ended September 30, 2024, 87.72% for the Fiscal 2024, 96.14% for the Fiscal 2023 and 89.53% for the Fiscal 2022) depends on projects awarded by state and central government departments, which may impact its results of operations and financial conditions.
-
Reliance on project acquisition in irrigation and water supply department: The company’s business significantly depends on its ability to successfully bid for and acquire projects in the irrigation and water supply projects segment. Its inability to successfully bid for and acquire new projects in the irrigation and water supply projects segment could have an adverse effect on the growth of its business.
-
Customer concentration risk: Revenue from its top ten customers comprise a significant portion of its revenue from operations (90.82% for the six months period ended September 30, 2024, 82.76% for the Fiscal 2024, 77.73% for the Fiscal 2023 and 74.82% for the Fiscal 2022).
Any failure to maintain its relationship with these customers, any adverse changes affecting their financial condition or the loss of any of its customers will have an adverse effect on its business, results of operations, financial condition and cash flows.
All Financial Information about LCC Projects
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV per Share (in ₹) |
|---|---|---|---|---|
LCC Projects Ltd | 2438.912 | 4.48 | 31.87 | 14.07 |
Vishnu Prakash R Punglia Ltd | 1473.865 | 10.95 | 16.95 | 57.85 |
Enviro Infra Engineers Ltd | 728.915 | 8.13 | 36.43 | 21.35 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Motilal Oswal Investment Advisors Ltd
Business Model
The company has executed a wide range of projects in the irrigation and water supply segment and is poised to undertake infrastructure projects across 11 states in India. As of September 30, 2024, its order book comprises 68 projects, of which Sondwa Lift Micro Irrigation Project, Sidhi Bansagar Multi – Village Scheme and Gandhi Sagar 1 Multi-Village Scheme are its top three projects, in terms of project value, having a project value of ₹1395.411 crores, ₹1386.494 crores, and ₹1049.0 crores , respectively
LCC Projects Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 2449.791 | 1234.640 | 796.219 |
Profit Before Taxes (in ₹ crore) | 172.423 | 91.774 | 54.283 |
Profit After Taxes (in ₹ crore) | 121.997 | 68.217 | 35.334 |
EPS in ₹ | 4.48 | 2.51 | 1.30 |
LCC Projects Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Taxes (in ₹ crore) | 172.423 | 91.774 | 54.283 |
Net Cash flow Generated From/(Used in) Operating Activities (in ₹ crore) | 29.349 | (48.823) | 16.706 |
Net Cash Used in Investing Activities (in ₹ crore) | (129.489) | (93.012) | (38.821) |
Net Cash Generated From/ (Used in) Financing Activities (in ₹ crore) | 83.453 | 143.446 | 58.885 |
Cash and Cash Equivalents at the End of the Year (in ₹ crore) | 21.894 | 38.580 | 36.970 |
How to Check Allotment Status of LCC Projects Ltd?
1. Visit the Registrar’s Website
Visit the official website of KFin Technologies Ltd and click on any one of the links under ‘IPO Allotment Status’. Select the IPO. Put in your application number, Demat or PAN. Enter captcha and click on ‘Submit’.
2. Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'LCC Projects Ltd' in the next dropdown
- Enter your application number
- Enter your PAN · Click 'Search’ to know allotment status.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of LCC Projects Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for LCC Projects Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
LCC Projects Ltd IPO FAQs
What is the LCC Projects Ltd IPO?
The IPO of LCC Projects Ltd comprises a fresh issue and an offer for sale. While the fresh issue aggregates up to ₹320 crores, the offer for sale is up to 22,940,000 equity shares.
What are the bidding dates for LCC Projects Ltd IPO?
The bidding dates of the IPO are yet to be announced.
Who is the chairman and managing director of LCC Projects Ltd?
Arjan Suja Rabari is the chairman and MD of LCC Projects Ltd.
From where can i read more about the IPO of LCC Projects Ltd?
You can read more about the IPO of LCC Projects Ltd from the company’s draft red herring prospectus here.
