LCC Projects IPO

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

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.

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.

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

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.